Expert Outlook: Two Harbors Inv Through The Eyes Of 4 Analysts

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on Two Harbors Inv TWO in the last three months.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

In the assessment of 12-month price targets, analysts unveil insights for Two Harbors Inv, presenting an average target of $14.69, a high estimate of $15.75, and a low estimate of $13.00. This current average has increased by 6.84% from the previous average price target of $13.75.

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of Two Harbors Inv's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Two Harbors Inv. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Two Harbors Inv compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Two Harbors Inv's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Two Harbors Inv's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

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About Two Harbors Inv

Two Harbors Investment Corp is a real estate investment trust primarily focused on investing in, financing, and managing residential mortgage-backed securities, or RMBS; residential mortgage loans; mortgage servicing rights; and commercial real estate. The majority of the company's investment portfolio is split between agency RMBS purchased from government-sponsored enterprises and nonagency RMBS. Two Harbors derives nearly all of its revenue in the form of interest income collected from its investments. Most of this income is generated by available-for-sale securities, while residential mortgage loans held for investment in securitization trusts also contribute a sizable amount.

Understanding the Numbers: Two Harbors Inv's Finances

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Two Harbors Inv faced challenges, resulting in a decline of approximately -53.93% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Two Harbors Inv's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 40.33%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Two Harbors Inv's ROE excels beyond industry benchmarks, reaching 2.74%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.34%, the company showcases effective utilization of assets.

Debt Management: Two Harbors Inv's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.97.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.