Ratio Analysis: Unpacking Two Harbors Investment Corp (TWO)’s Price-to-Cash and Price-to-Free Cash Flow

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After finishing at $12.95 in the prior trading day, Two Harbors Investment Corp (NYSE: TWO) closed at $12.96, up 0.08%. In other words, the price has increased by $0.08 from its previous closing price. On the day, 0.82 million shares were traded. TWO stock price reached its highest trading level at $13.1 during the session, while it also had its lowest trading level at $12.88.

Ratios:

Our goal is to gain a better understanding of TWO by taking a closer look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 1.82 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 4.01. In the meantime, Its Debt-to-Equity ratio is 4.59 whereas as Long-Term Debt/Eq ratio is at 0.69.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, UBS on December 06, 2023, initiated with a Neutral rating and assigned the stock a target price of $14.50.

On February 10, 2023, Maxim Group Upgraded its rating to Buy which previously was Hold but kept the price unchanged to $19.

RBC Capital Mkts Downgraded its Outperform to Sector Perform on November 17, 2022, whereas the target price for the stock was revised from $18 to $16.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Feb 27 ’24 when RUSH ROBERT sold 3,775 shares for $12.60 per share. The transaction valued at 47,566 led to the insider holds 69,176 shares of the business.

VINAR JASON sold 1,980 shares of TWO for $24,948 on Feb 27 ’24. The Chief Operating Officer now owns 44,035 shares after completing the transaction at $12.60 per share. On Feb 27 ’24, another insider, KEEN MATTHEW, who serves as the Chief Technology Officer of the company, sold 1,891 shares for $12.60 each. As a result, the insider received 23,827 and left with 29,718 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, TWO now has a Market Capitalization of 1341282304 and an Enterprise Value of 11187080192. As of this moment, Two’s Price-to-Earnings (P/E) ratio for their current fiscal year is 7.64, and their Forward P/E ratio for the next fiscal year is 8.48. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.29. For the stock, the TTM Price-to-Sale (P/S) ratio is 1.43 while its Price-to-Book (P/B) ratio in mrq is 0.82. Its current Enterprise Value per Revenue stands at 17.979.

Stock Price History:

The Beta on a monthly basis for TWO is 1.86, which has changed by 0.047695994 over the last 52 weeks, in comparison to a change of 0.2644323 over the same period for the S&P500. Over the past 52 weeks, TWO has reached a high of $14.59, while it has fallen to a 52-week low of $9.83. The 50-Day Moving Average of the stock is 2.47%, while the 200-Day Moving Average is calculated to be -0.31%.

Shares Statistics:

The stock has traded on average 1.10M shares per day over the past 3-months and 1018560 shares per day over the last 10 days, according to various share statistics. A total of 103.21M shares are outstanding, with a floating share count of 102.80M. Insiders hold about 0.67% of the company’s shares, while institutions hold 69.83% stake in the company. Shares short for TWO as of 1714435200 were 3084521 with a Short Ratio of 2.80, compared to 1711584000 on 3170683. Therefore, it implies a Short% of Shares Outstanding of 3084521 and a Short% of Float of 4.0599998.

Dividends & Splits

In the trailing 12 months, TWO’s forward annual dividend rate was 1.8, compared to 1.80 this year. Against a Trailing Annual Dividend Yield of 0.13899614The stock’s 5-year Average Dividend Yield is 13.95.

Earnings Estimates

Currently, 5.0 analysts are dedicated to thoroughly evaluating and rating the performance of Two Harbors Investment Corp (TWO) in the stock market.On average, analysts expect EPS of $0.38 for the current quarter, with a high estimate of $0.45 and a low estimate of $0.15, while EPS last year was -$0.04. The consensus estimate for the next quarter is $0.39, with high estimates of $0.5 and low estimates of $0.22.

Analysts are recommending an EPS of between $1.86 and $0.7 for the fiscal current year, implying an average EPS of $1.21. EPS for the following year is $1.83, with 4.0 analysts recommending between $2.13 and $1.6.

Revenue Estimates

3 analysts predict -$29.07M in revenue for the current quarter. It ranges from a high estimate of -$19.3M to a low estimate of -$41.69M. As of the current estimate, Two Harbors Investment Corp’s year-ago sales were -$41.8MFor the next quarter, 3 analysts are estimating revenue of -$30.53M. There is a high estimate of -$24.1M for the next quarter, whereas the lowest estimate is -$41.69M.

A total of 3 analysts have provided revenue estimates for TWO’s current fiscal year. The highest revenue estimate was -$110.8M, while the lowest revenue estimate was -$167.28M, resulting in an average revenue estimate of -$131.45M. In the same quarter a year ago, actual revenue was -$162.86MBased on 3 analysts’ estimates, the company’s revenue will be -$111.77M in the next fiscal year. The high estimate is -$70.6M and the low estimate is -$166.76M.

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