Two Harbors Investment Corp. (TWO) Earnings Surprise by -7.10% in 6/29/2019: What Dose This Mean?

Two Harbors Investment Corp. (TWO) is owned by a number of high-value investors. Its largest direct holder is Thomas E. Siering Director, President and Chief Executive Officer with 745,706 shares. The second-largest direct holder is William Roth Vice President, Chief Investment Officer and Director, with 691,497 shares of the company’s stock. In third place with 161,500 shares of TWO is Rebecca B. Sandberg Vice President, General Counsel and Secretary.

Now turning to institutional ownership of Two Harbors Investment Corp. (TWO), The Vanguard Group, Inc. is the top holder with 26.32 million shares. The next largest fund holder of this company’s stock is BlackRock Fund Advisors with 16.26 million shares. In the third-place spot with 11.88 million shares is Michigan Department of Treasury (Investment Management).

This company’s stock price was $13.31 at the previous market close, with its latest volume reaching 2567723. Compare that to its average daily volume of 2.12M. Given the fact that this stock has 272.28M shares outstanding, its current market value is sitting at $3.62B. This publicly-traded stock’s 60-month Beta is 0.65. Its Price to Sales ratio is 10.68, its Price to Cash Flow ratio is 8.36, and its Price to Book ratio is 0.93.

TWO stock has achieved a 5-day range of $12.98 to $13.32, with a total performance of +2.46% during that period. Meanwhile, in the past month of trading, this stock has traded in the range of $12.81 to $13.77, generating a +1.22% change during the period. In the past three months, this stock’s price has changed by +3.34%, trading in the range of $12.49 to $13.77.

In the past 5 days, shares of TWO have made a new high 4 times. In the last month, it has made a new high 8 times, and in the past 3 months, it has made a new high 15 times.

Now let’s turn to this public company’s earnings. For the quarter ending 6/29/2019, the earnings per share (EPS) was reported at 0.39. This is a -0.03 difference compared to the consensus estimate of 0.42, amounting to an earnings surprise of -7.10%. In the previous quarter, which ended in 6/29/2019, the consensus estimate was 0.48, making for an earnings surprise of 2.10%. For the quarter ending 12/30/2018, EPS was reported at 0.49, generating a 4.30% earnings surprise.

The Net Income for the most recent full fiscal year, which ended in 12-2018, was $-44.29 million. This is compared to the prior year, where Net Income was $308.24 million. Capital Expenditures for the year were reportedly $702.87 million, compared to $606.78 million, and Free Cash flow was $702.87 million compared to the prior year’s $606.78 million.

Two Harbors Investment Corp. (TWO) stock currently has a Financial Strength score of 4/10. This is due to a combination of factors, including a Cash to Debt ratio of 0.6, an Equity to Asset ratio of 0.14, a Debt to Equity ratio of 0.15.

This publicly-traded company’s Profitability and Growth score is 4/10, thanks to a combination of things: a Net Margin of 143.63, a ROE of -16.12.

Shifting focus now to Valuation and Return for TWO, this company’s Price to Tangible Book is 1.74. Price to Peter Lynch Fair Value for TWO is now 0.00.

Certain ratios provide helpful insights into how a stock is performing. The Quick Ratio for TWO is sitting at 0.00, while its Current Ratio is 0.00. This stock’s PB Ratio is 0.92, its Forward PE Ratio is 7.76. Similarly, its Shiller PE Ratio is 6.74 and its Price to Operating Cash Flow is 3.9.