Maxim Group analyst Michael Diana reiterated a Buy rating on Two Harbors (TWO) yesterday and set a price target of $15. The company’s shares closed yesterday at $12.65, close to its 52-week low of $12.06.
Diana noted:
“As management hinted at on its 1Q19 conference call, and as we highlighted in our May 9 note, TWO cut its quarterly dividend. With a post-cut dividend yield of 12.7% and our price target of $15, our estimated 12-month total return is about 31%. TWO remains our top mortgage REIT pick, having demonstrated the best risk management of any mortgage REIT over the long term, including preservation of book value. In our view, pairing Agency RMBS with MSR produces a hedging and return strategy superior to that of any other mortgage REIT.”
According to TipRanks.com, Diana is a 5-star analyst with an average return of 6.2% and a 56.9% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Manhattan Bridge Capital Inc, and Arlington Asset Investment.
Currently, the analyst consensus on Two Harbors is a Moderate Buy with an average price target of $15.
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Based on Two Harbors’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $25.94 million. In comparison, last year the company had a net profit of $335 million.
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Two Harbors Investment Corp. is a real estate investment trust, which focuses on investing in, financing and managing agency residential mortgage-backed securities, non-Agency securities, mortgage servicing rights and other financial assets.
