Two Harbors Investment Set to Announce Q4 Earnings on February 2nd
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Earnings Announcement: Two Harbors Investment is set to release its Q4 earnings on February 2nd after market close, with consensus EPS estimate at $0.37 and revenue estimate at -$14.88 million, indicating cautious market sentiment regarding the company's financial performance.
- Historical Performance Review: Over the past two years, Two Harbors has beaten EPS estimates 50% of the time and revenue estimates 75% of the time, suggesting a relatively stable performance in meeting financial forecasts.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen four upward revisions and two downward revisions, while revenue estimates have experienced three upward and three downward revisions, reflecting analyst divergence and uncertainty regarding the company's future performance.
- Market Reaction and Ratings: Following the merger with UWM, Two Harbors' stock has experienced volatility, with UBS downgrading its rating to Neutral, reflecting market concerns over the uncertainties and potential risks associated with the deal.
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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.
Two Harbors Investment Set to Announce Q4 Earnings on February 2nd
- Earnings Announcement: Two Harbors Investment is set to release its Q4 earnings on February 2nd after market close, with consensus EPS estimate at $0.37 and revenue estimate at -$14.88 million, indicating cautious market sentiment regarding the company's financial performance.
- Historical Performance Review: Over the past two years, Two Harbors has beaten EPS estimates 50% of the time and revenue estimates 75% of the time, suggesting a relatively stable performance in meeting financial forecasts.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen four upward revisions and two downward revisions, while revenue estimates have experienced three upward and three downward revisions, reflecting analyst divergence and uncertainty regarding the company's future performance.
- Market Reaction and Ratings: Following the merger with UWM, Two Harbors' stock has experienced volatility, with UBS downgrading its rating to Neutral, reflecting market concerns over the uncertainties and potential risks associated with the deal.
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Investigation of Investor Rights Announced
- Merger Investigation: Halper Sadeh LLC is investigating Waters Corporation's merger with BD's Biosciences & Diagnostic Solutions business, where existing Waters shareholders are expected to own approximately 60.8% of the combined entity, potentially impacting shareholder rights.
- Sale Rights Notification: Two Harbors Investment Corp. is selling to UWM Holdings Corporation for 2.3328 shares of UWM Class A Common Stock per share of Two Harbors common stock, prompting Halper Sadeh LLC to encourage shareholders to understand their legal rights and options to ensure transaction fairness.
- Shareholder Rights Protection: United Security Bancshares is selling to Community West Bancshares for 0.4520 shares of Community West common stock per share of United Security common stock, with Halper Sadeh LLC potentially seeking increased compensation and additional disclosures to protect shareholder interests.
- Cash Acquisition Deal: Alexander & Baldwin, Inc. is being sold for $21.20 per share in cash to MW Group and funds affiliated with Blackstone Real Estate and DivcoWest, with Halper Sadeh LLC reminding shareholders to contact them promptly to learn about their rights and options.
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