Two Harbors Investment Corp rises amid sector rotation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 09 Jan 26
Source: 8-K
Two Harbors Investment Corp's stock increased by 7.40%, reaching a 20-day high, as broader market indices showed positive movement with the Nasdaq-100 up 0.56% and the S&P 500 up 0.47%.
This rise occurs amid sector rotation, as investors are shifting their focus towards real estate investment trusts (REITs) in light of recent market trends. The positive sentiment in the broader market has contributed to this shift, allowing Two Harbors to capitalize on favorable conditions.
The implications of this movement suggest that Two Harbors Investment Corp may continue to benefit from the current market dynamics, particularly if the trend towards REITs persists.
Analyst Views on TWO
Wall Street analysts forecast TWO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TWO is 10.88 USD with a low forecast of 10.00 USD and a high forecast of 12.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
1 Buy
4 Hold
0 Sell
Hold
Current: 13.290
Low
10.00
Averages
10.88
High
12.50
Current: 13.290
Low
10.00
Averages
10.88
High
12.50
About TWO
Two Harbors Investment Corp. is a real estate investment trust (REIT) that invests in mortgage servicing rights (MSR), residential mortgage-backed securities and other financial assets. The Company, through its operational platform, RoundPoint Mortgage Servicing LLC, is a servicer of conventional loans. The Company, through its subsidiary, TH MSR Holdings LLC, holds the requisite approvals from Fannie Mae and Freddie Mac to own and manage MSR. Its Agency residential mortgage-backed securities portfolio is comprised of fixed rate mortgage-backed securities backed by single-family and multi-family mortgage loans. Its other assets may include financial and mortgage-related assets other than its target assets, including non-Agency securities (securities that are not issued or guaranteed by Ginnie Mae, Fannie Mae or Freddie Mac), other Agency securities and certain non-hedging transactions that may produce non-qualifying income for purposes of REIT gross income tests.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
