Momentum Stock Watch: Two Harbors Investment Corp. (TWO)

Company Profile:

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), non-agency securities, mortgage servicing rights, and other financial assets in the United States. The company qualifies as a REIT for federal income tax purposes. As a REIT, the company would not be subject to federal income tax, if it distributes at least 90% of net taxable income to its stockholders. Two Harbors Investment Corp. was incorporated in 2009 and is headquartered in New York, New York.

Recent News:

On March 20, the company declared a quarterly dividend of $0.47 per share of common stock for the first quarter of 2018. This dividend is payable on April 27, 2018 to common stockholders of record at the close of business on April 2, 2018.

For the quarter ended December 31, 2017, the company reported Generated Comprehensive Income of $65.7 million, or $0.38 per weighted average basic common share.

For 2017, the company reported Generated Comprehensive Income of $459.0 million, or $2.63 per weighted average basic common share, representing a return on average common equity of 13.6%.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

TWO’s strengths can be seen in its better growth, strong profitability and robust efficiency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic Oscillator, MACD is trying to cross back up and RSI(14) stands at 55.37 with positive bias. We rate Two Harbors Investment Corp. (TWO) a STRONG BUY.

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