Bollinger Band Analysis Review of Two Harbors Investment Corp. (NYSE:TWO)


Technical Indicators and Signals

The stochastic oscillator indicator is the important indicator to compare the security price over a certain period of time. The stochastic %K of Two Harbors Investment Corp. (NYSE:TWO) for the period of 9-Day stands at 16.67% while the stochastic %D for the same period stands at 15.29%.

The 7-Day Average Directional Index ADX (also known as Trend Strength Indicator) of Two Harbors Investment Corp. (NYSE:TWO) signals “Sell” while other important signals like the 20-Day Moving Average Vs. Price signals “Sell”.

Another important signal of trend and momentum of a security is 20-50 Day MACD Oscillator or Moving Average Convergence Divergence signals “Buy” for Two Harbors Investment Corp. (NYSE:TWO) while 20-100 Day MACD Oscillator indicates “Sell”.

Bollinger band is a volatility indicator of a certain security, currently Two Harbors Investment Corp. (NYSE:TWO)’s 20-Day Bollinger Band indicates “Sell”.

About Company

Two Harbors Investment Corp is a Real Estate Investment Trust that focuses on investing in, financing and managing residential mortgage-backed securities and mortgage loans. Its objective is to provide risk-adjusted returns to investors through dividends and capital appreciation. Two Harbors intends to acquire and manage a portfolio of mortgage-backed securities, focusing on security selection and the relative value of various sectors within the mortgage market. As an investment strategy, the company expects to deploy moderate borrowings through, with respect to Agency RMBS, short-term borrowings structured as repurchase agreements and, with respect to non-Agency RMBS and residential mortgage loans, private funding sources. It may also finance portions of its portfolio through non-recourse term borrowing facilities and equity financing under the Legacy Loan Program and Term Asset-Backed Securities Lending Facility (TALF), if such financing becomes available.

Previous Day Activity Analysis

On the last trading day, Two Harbors Investment Corp. (NYSE:TWO) opened the session at $15.91 and after going down -1.38% closed at $15.71. The stock lost -0.2 points in the last trade.

Two Harbors Investment Corp. (NYSE:TWO)’s stock fluctuated in the range of $15.71 and $15.94 during the previous active session. Two Harbors Investment Corp. (NYSE:TWO) traded with the volume of 1.73 Million with average volume of 2.03 Million. The stock has HIGH volatility on the last trading session.

Currently the Beta for the company remains at 0.57 while ATR (Average True Range) and RSI (Relative Strength Index) are at 0.22 and 38.82 respectively.

Currently the Insider Ownership of the shares of Two Harbors Investment Corp. (NYSE:TWO) is at 0.6% and the shares outstanding are 173.83 Million.

Important Ratio Analysis

Some important ratios to consider here for Two Harbors Investment Corp. (NYSE:TWO) are discussed below:

Dividend yield of Two Harbors Investment Corp. (NYSE:TWO) stands at 11.97% whereas Price to Earnings P/E ratio stands at 5.43 while Forward P/E shows the value of 8.62.

The Price to Sale P/S and Price to Book P/B shows the value of 4.43 and 0.78 respectively. While Price to Cash P/C and Price to Free Cash Flow P/FCF stands at 5.06 and 0 correspondingly.

Return on Assets ROA of Two Harbors Investment Corp. (NYSE:TWO) is at 2.1% whereas, Return on Equity ROE and Return of Investment ROI of Two Harbors Investment Corp. (NYSE:TWO) stand at 14.8% and 1.8% respectively.

The payout ratio of Two Harbors Investment Corp. (NYSE:TWO) stands at 66.8%.

Stock Performance Analysis

The stock performance of Two Harbors Investment Corp. (NYSE:TWO) on the basis of 5 day trade show the dip of -2.36% whereas, the monthly performance of the stock shows decrease of -3.62%.

The quarterly performance of the stock remained in red zone with the value of -4.63% while six month performance of the shares of Two Harbors Investment Corp. (NYSE:TWO) remained bearish with the count of -2.49%.

The yearly and YTD performance of Two Harbors Investment Corp. (NYSE:TWO) remained mix at 9.53% and -3.38% respectively.