Unusual Options Trading Activity Surrounds Two Harbors Investment Corporation
January 6, 2023
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TWO Intrinsic Value – Two Harbors Investment ($NYSE:TWO) Corporation is a publicly traded Real Estate Investment Trust (REIT) headquartered in New York City. The company invests in residential mortgage-backed securities, residential mortgage loans, and other mortgage-related assets. It also provides asset management services to government-sponsored enterprises, private institutions, and banks. Recently, Two Harbors Investment Corporation has been the target of unusually large options trading activity. Call options give the owner the right to buy shares of the underlying security at a predetermined price up to a specific date.
This type of trading is usually done by investors who think the stock price will rise in the short term. The company has seen strong growth in its net income and revenue over the past decade and is well-positioned to benefit from a recovering housing market. The company has also recently announced plans to acquire a portfolio of mortgage backed securities from Fannie Mae, which may further boost its earnings. The company’s strong financials, coupled with its ability to take advantage of a recovering housing market, may make Two Harbors Investment Corporation an attractive investment opportunity in the near future.
Price History
The stock opened at $16.0 and closed at $15.8, down by 2.7% from its last closing price of 16.2. This activity followed a significant increase in options activity as investors looked to capitalize on the stock’s potential upside. The unusual activity is likely due to the company’s continued success in the mortgage-backed securities market. Two Harbors Investment Corporation specializes in investing in residential mortgage-backed securities and other related investments, which have consistently provided strong returns for investors. The company’s portfolio of residential mortgage-backed securities is well diversified and includes a variety of mortgage types and credit profiles.
The company’s solid financial position and attractive dividend yield may also be attractive to investors. Given the company’s strong financial position and its attractive dividend yield, it is not surprising that investors would be keen to capitalize on the stock’s potential upside. The unusual options activity observed on Wednesday could be an indication of this optimism, however investors should conduct their own research to make an informed decision before investing in Two Harbors Investment Corporation. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for TWO. More…
| Total Revenues | Net Income | Net Margin |
| 659.83 | 434.71 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for TWO. More…
| Operations | Investing | Financing |
| 291.28 | 6.31k | -7.3k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for TWO. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.7k | 12.55k | 23.74 |
Key Ratios Snapshot
Some of the financial key ratios for TWO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
VI Analysis – TWO Intrinsic Value Calculator
Two Harbors Investment Corp is a real estate investment trust (REIT) focused on investing in, financing, and managing residential mortgage-backed securities (RMBS), mortgage servicing rights (MSR), and other financial assets. The company’s fundamental analysis, made simple by the VI app, reveals its long term potential. Through the app’s VI Line, the intrinsic value of TWO HARBORS INVESTMENT Corp’s share is estimated to be around $21.7. Currently, the stock is traded at $15.8, indicating that it is undervalued by 27%. This provides an opportunity for potential investors to buy and benefit from the potential long-term growth of TWO HARBORS INVESTMENT Corp. The company’s portfolio consists of a mix of agency RMBS and non-agency RMBS. It also has investments in MSRs and other financial assets, such as commercial mortgage-backed securities and residential loans. TWO HARBORS INVESTMENT Corp has a diversified portfolio of investments across residential mortgage markets, which helps to reduce risk and increase returns. In addition, the company also invests in structured finance products, such as collateralized loan obligations (CLOs) and residential mortgage-backed securities (RMBS). TWO HARBORS INVESTMENT Corp has a strong balance sheet and is well capitalized. The company has a solid track record of performance over the past few years and is expected to continue to perform well in the future. Its dividend yield is currently well above the industry average, making it an attractive investment for income-seeking investors. Overall, TWO HARBORS INVESTMENT Corp is a solid long-term investment opportunity. With its undervalued share price, strong fundamentals, and attractive dividend yield, investors should consider adding it to their portfolio. More…
VI Peers
The company was founded in 2007 and is headquartered in New York, New York. Two Harbors Investment Corp’s competitors include Chimera Investment Corp, Annaly Capital Management Inc, and Ellington Financial Inc. These companies are also involved in the business of investing in mortgage-related assets.
– Chimera Investment Corp ($NYSE:CIM)
Chimera Investment Corporation is a real estate investment trust that primarily invests in mortgage-backed securities. The company has a market cap of $1.45 billion as of 2022. Chimera Investment Corporation is headquartered in New York, New York.
– Annaly Capital Management Inc ($NYSE:NLY)
Annaly Capital Management Inc is a real estate investment trust that primarily focuses on investing in and financing mortgage-backed securities. As of December 31, 2020, the Company’s portfolio consisted of approximately $106.6 billion in assets, including $103.1 billion in residential mortgage-backed securities and $3.5 billion in commercial mortgage-backed securities.
– Ellington Financial Inc ($NYSE:EFC)
Ellington Financial Inc is a mortgage real estate investment trust that acquires, finances, and manages residential and commercial mortgage-backed securities and mortgage loans. The company has a market cap of $817.82 million as of 2022. The company was founded in 2007 and is headquartered in Old Greenwich, Connecticut.
Summary
Two Harbors Investment Corporation is a real estate investment trust that invests in residential mortgage-backed securities and mortgage loans. Recently, there has been an increase in unusual options trading activity surrounding the company, which could indicate potential changes in the stock price. Investors should pay close attention to the news, watch for any changes in the company’s fundamentals, and analyze the risks and rewards of investing in Two Harbors. Analysts suggest that investors should research the company’s financials and consider any potential catalysts that could affect the stock price.
Additionally, investors should consider the long-term goals of their investment portfolio when deciding whether or not to invest in Two Harbors.
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