TWO stock: buy or sell?

TWO stock price: $14.68 0.20% At close on December 6th, 2019

Updated on:
December 6th, 2019

5

Two Harbors Investments stayed stable 0.20% today and peaked a new all time high at $14.75.

Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), mortgage servicing rights, commercial real estate assets, and other financial assets in the United States.

Should I buy TWO stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups match with Two Harbors Investments stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Two Harbors Investments stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 4 ratings published for TWO stock in the last month.

The general sentiment of these ratings is bullish for TWO stock, with 3 positive ratings.
Is TWO a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-8Maxim Groupn/aBuy
2019-7-24JPMorgan Chase & Co.n/aOverweight
2019-3-27Nomuran/aNeutral
2019-2-7Maxim Groupn/aBuy

TWO stock analysis

Daily outlook

After several days of continuous rises in past weeks, Two Harbors Investments stayed constant 0.20% to $14.68.

After several days of continuous rises in past weeks, Two Harbors Investments stayed constant 0.20% to $14.68. On October, SMA100d and SMA200d crossed up triggering a rise of 7.31%. Since September when TWO stock price broke up the SMA200d line, it gained $2.30 (18.58%). From a daily perspective, TWO is in a short term uptrend after plotting its last bottom ($14.31, on Nov/20) higher than the previous bottom, and its last top ($14.74, on Monday) also over the previous top. Now trading in between its last bottom and last top TWO might consolidate in a plain range, waiting to break out over $14.74 or down under $14.31.

TWO stock chart (daily)

Weekly outlook

Two Harbors Investments shares gained 0.96% this week and topped a new all time high at $14.75. This week was the third green week in a row.

Weekly chart tells us that price finally broke over the resistance at $13.17 and continued climbing. By mid October, SMA20w and SMA40w crossed up triggering a rise of 9.31%. Early September TWO price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

TWO stock chart (weekly)

TWO stock price history

TWO stock went public on October 30th, 2009 with a price of $4.261. Since then, TWO stock surged a 244.60%, with an average of 24.50% per year. If you had invested $1,000 in TWO stock in 2009, it would worth $2,446.00 today.

1: Adjusted price after possible price splits or reverse-splits.

TWO stock historical price chart

TWO stock reached all-time highs today with a price of $14.75.

TWO stock price target is $14.50

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' TWO stock price predictions in the hope that they will be met as they may be wrong and not met. We found 3 price predictions for Two Harbors Investments stock posted in the last 30 days:
TWO stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-8Maxim GroupReiteratesn/a$15.00-
2019-7-24JPMorgan Chase & Co.Lowers Target$14.50$13.50-6.9%
2019-2-7Maxim GroupReiteratesn/a$15.00-
(in average)$14.50$14.500.0%
Moving in a range from $15.00 and $13.50, the price prediction for Two Harbors Investments stock is $14.50. In average, analysts' outlook on TWO price target is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Two Harbors Investments reported its latest financial data, posting a slightly fine climb for the Earnings per Share (EPS). Analyst expected $0.47 per share, but Two Harbors Investments posted $0.49.
TWO earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/an/an/a
2017-Q2-n/an/an/a
2017-Q3-n/an/an/a
2017-Q4-n/an/an/a
2018-Q12018-05-080.470.482.1%
2018-Q22018-08-070.480.5310.4%
2018-Q32018-11-060.480.480.0%
2018-Q42019-02-060.470.494.3%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a hair-raising drop down of -52.63% to $152.42 million USD. In line, its income margin (compared to revenues) plummed to -29.06%, that is $-44.29 million.

TWO annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$500 M-$575 M114.9%-
2014$136 M-72.87%$167 M123.1%-70.93%
2015$571 M320.42%$492 M86.3%194.49%
2016$444 M-22.16%$353 M79.5%-28.23%
2017$322 M-27.55%$349 M108.3%-1.33%
2018$152 M-52.63%$-44.29 M-29.1%-112.71%

Quarterly financial results

Two Harbors Investments reported $-532.25 million in revenues for 2018-Q4, a -388.61% decline compared to previous quarter. Reported quarter earnings marked $-554.54 million with a profit margin of 104.19%. Profit margin rocketed a 84.70% compared to previous quarter when profit margin was 19.49%. When comparing revenues to same quarter last year, Two Harbors Investments sales marked a chilling correction and plunged a -402.89%.
TWO quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$203 M-$71.99 M35.5%-
2017-Q2$223 M10.10%$8.62 M3.9%-88.03%
2017-Q3$108 M-51.75%$102.06 M94.6%1,084.04%
2017-Q4$176 M62.95%$165.90 M94.4%62.55%
2018-Q1$352 M100.33%$334.81 M95.1%101.81%
2018-Q2$148 M-57.89%$139.49 M94.1%-58.34%
2018-Q3$184 M24.42%$35.95 M19.5%-74.23%
2018-Q4$-532 M-388.61%$-554.54 M104.2%-1,642.69%

Two Harbors Investments ownership

When you are planning to buy shares of a stock, it's always worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Two Harbors Investments, 0.95% of all outstanding shares are owned by its staff.

In case of Two Harbors Investments stock, 58.23% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for TWO stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related stocks:

TWOANHCIMIVRNLY
Market cap$4.0 B$352.9 M$3.8 B$2.3 B$13.5 B
Total shares272.9 M98.9 M187.2 M142.8 M1,430.0 M
Float shares270.4 M90.4 M185.7 M142.4 M1,420.0 M
  - Institutional holdings (%)58.2%54.1%51.6%60.0%54.0%
  - Insider holdings (%)0.9%1.9%1.1%0.3%0.3%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

TWO summary

Friday, December 6th, 2019
Open$14.69
Close$14.68
Day range$14.66 - $14.75
Previous close$14.65
Session gain0.20%
Average true range$0.11
50d mov avg$13.91
100d mov avg$13.39
200d mov avg$12.92
Daily patternlt06a
Weekly pattern lb01c

Two Harbors Investments performance

To better understand Two Harbors Investments performance you must compare its gains with other related stocks in same sector or industry. We compared Two Harbors Investments against Anworth Mortgage Asset, Chimera Investment, INVESCO MORTGAGE CAPITAL and Annaly Capital Management in the following table:
Stock3m6m12m
TWOTwo Harbors Inves...15.86%26.23%16.05%
ANHAnworth Mortgage ...16.29%-2.99%-10.75%
CIMChimera Investmen...8.04%14.58%18.43%
IVRINVESCO MORTGAGE ...12.36%9.07%17.78%
NLYAnnaly Capital Ma...16.46%10.58%3.98%

Two Harbors Investments competitors

One check before trading any stock is to review a list of its competitors, in this case for Two Harbors Investments. We picked 4 companies as Two Harbors Investments competitors as they are in the same industry or have similar market objectives.