The long-term trend of the EPS is an important number as it indicates the present value of Two Harbors Investment Corp. The EPS growth rate, as it is typically called, is usually expressed as a percentage, which at this time is hard to estimate, but revenue growth has been 44.90 % over the last twelve months. Growth in EPS is an important measure of administration performance because it shows how much money Two Harbors Investment Corp is making for it’s investors or shareholders.



Two Harbors Investment Corp trades as part of the real estate sector and is in the REITs industry. The company CEO is Thomas E. Siering. Two Harbors Investment Corp is a REIT. It focuses on investing, financing and managing residential mortgage-backed securities, residential mortgage loans, mortgage servicing rights, commercial real estate debt and other financial assets.

Previous Intraday Performance:

The TWO shares had a previous change of 0.29% which opened at 13.75 and closed at 13.77. It moved to an intraday high of 13.81 and a low of 13.70.

SeekingAlpha:  AGNC Investment’s Q4 2018 Income Statement And Earnings Preview – Part 3 (Late Turnaround In MBS Pricing)

Historical Performance:

Over the last five trading days, TWO shares returned 2.46% and in the past 30 trading days it returned 1.51%. Over three months, it changed -1.64%. In one year it has changed -0.21% and within that year its 52-week high was 16.27 and its 52-week low was 12.63. TWO stock is 9.03% above its 52 Week Low.

Our calculations result in a 200 day moving average of 14.19 and a 50 day moving average of 13.66. Right now, TWO stock is trading -2.98% below its 200 day moving average and may be a great opportunity to buy, but should check other technical indicators to confirm a buy signal.

SeekingAlpha:  AGNC Investment’s Q4 2018 Income Statement And Earnings Preview – Part 3 (Late Turnaround In MBS Pricing)

Liquidity:

The company has a market cap of $3.4b with 248.1m shares outstanding and a float of 245.0m shares. Trading volume was 1,495,915 shares and has experienced an average volume of 2,359,919 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is good.

Earnings:

The last annual reported EPS for Two Harbors Investment Corp was 1.79 which ended on 31st of December 2017, which according to the previous close, that is a PE of 7.69. Based on 3 analyst estimates, the consensus EPS for the next quarter is 0.47. The trailing twelve month EPS is 1.96, which comes to a trailing twelve month PE of 7.03. Historically, the PE high was 19.60 and the PE low was 4.20. If the stock reached its PE low, that would represent a price of 8.23, which is a decrease of -40.26%.

Below was the last reported quarterly earnings per share:
09-30-2018:  0.48
06-30-2018:  0.53
03-31-2018:  0.48
12-31-2017:  0.47

The dividend per share is currently 1.88, which is a dividend yield of 13.65%.



Base on our calculations, the intrinsic value per share is 23.16, which means it might be undervalued and has a margin of safety of 40.54%

Indicators Also to Watch:

Based on the latest filings, there is 1.80% of insider ownership and 82.70% of institutional ownership. Short-interest was 5,599,191, which was 2.26% of shares outstanding. The short-interest ratio or days-to-cover ratio was 3.03. This stock has some short interest, but it might be normal and no need to worry if long the position.

I calculated the beta to be 0.59

SeekingAlpha:  GE, CIEN and ADIL among premarket gainers

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 17.11%, return on assets is 2.08%, profit margin is 48.97%, price-to-sales is 3.27 and price-to-book is 0.92.

Company Score Card:

Results are out of six:
 0  : Growth Expectations Result
 1  : Financial Safety Result
 3  : Past Performance Result
 4  : Valuation Result
 3  : Dividend Safety Result
 2  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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