S&P 500 may face selling pressure as systematic funds reach full exposure
Two Harbors Investment Corp (NYSE:TWO) stock has reached a 52-week low, hitting a price of 10.15 USD. The $1.06 billion market cap company currently offers an attractive 15.18% dividend yield, having maintained dividend payments for 17 consecutive years, according to InvestingPro data. This decline marks a significant downturn for the company, as it reflects a 1-year change of -26.41%. The stock’s performance over the past year has been challenging, with the latest low point underscoring a continued downward trend. While currently unprofitable, analysts expect the company to return to profitability this year. InvestingPro’s Fair Value analysis suggests the stock may be slightly undervalued at current levels. Investors will be closely monitoring the situation to assess future prospects and potential recovery opportunities for the company in the coming months. For deeper insights, check out the comprehensive Pro Research Report available on InvestingPro, covering what really matters about this stock through expert analysis.
In other recent news, Two Harbors Investment Corp reported its first-quarter 2025 earnings, which fell short of expectations. The company posted an earnings per share (EPS) of $0.24, missing the forecast of $0.41, and reported revenue of -$20.33 million, below the expected -$12.86 million. Despite these results, Two Harbors increased its book value per share to $14.66 from $14.47, indicating asset growth. Additionally, the company completed a $115 million offering of 9.375% Senior Notes due 2030, with net proceeds intended for general corporate purposes. Analysts from Citizens JMP downgraded Two Harbors from Market Outperform to Market Perform due to uncertainties surrounding a lawsuit, while Keefe, Bruyette & Woods lowered the stock’s price target to $11 from $13.25, citing the same litigation concerns. The litigation involves a $198.9 million charge related to a dispute with the company’s former external manager. Despite the litigation risks, analysts suggest the potential for modest additional charges. These developments reflect ongoing challenges and strategic adjustments within Two Harbors.
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