
TWO Stock Forecast & Price Target
TWO Analyst Ratings
Bulls say
Two Harbors Investment Corp reported a notable increase in total interest-earning investments, growing to $11.40 billion at the end of the quarter, surpassing initial estimates and previous quarter figures. The company’s focus on mortgage servicing rights (MSRs) has shown positive momentum, with a substantial portion of capital allocated—approximately two-thirds—to this segment, ensuring durable cash flows amid elevated mortgage rates and limited prepayment risks. Additionally, declining borrowing costs for agency MBS and MSRs, alongside the expansion of the RoundPoint servicing platform, further enhance Two Harbors' financial positioning, making it well-suited for potential growth.
Bears say
Two Harbors Investment Corp reported a book value per share (BVPS) of $14.93, which represents a decline from the previous quarter and falls below estimates, primarily impacted by widening mortgage spreads and uneven performance across its coupon stack. The company's total interest-earning investments also decreased to $10.38 billion, markedly lower than both estimates and the previous quarter, indicating a potential slowdown in investment activity. Additionally, the reported net interest income was a loss of $42.3 million, significantly underperforming against expectations, which casts doubt on the firm's ability to generate consistent earnings moving forward.
This aggregate rating is based on analysts' research of Two Harbors Investment and is not a guaranteed prediction by Public.com or investment advice.
TWO Analyst Forecast & Price Prediction
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