Two Harbors Investment Corp. Stock Price and Value Analysis

Should you buy Two Harbors Investment Corp. stock? (NYSE:TWO). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company has a large dividend yield!
  • This company is solid.
  • This company is making money at a modest rate.
  • This company has wild ups and downs.
  • This stock looks overpriced.

Inside the TWO Numbers

TWO Price
(Two Harbors Investment Corp. stock price per share)
$6.71
[?] TWO Fair Price
(based on intrinsic value)
$-1.32
[?] TWO Safety Price (based on a variable margin of safety) $-0.86
[?] PE Ratio versus Sector 36% lower than other Real Estate stocks
[?] PE Ratio versus Industry 73% lower than other Unknown stocks
[?] Cash Yield -41.60%
[?] Free Cash Flow Jitter 79%
[?] Dividend Yield 11%
Shares Shorted 25,933,921

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 25,933,921 shares shorted. With 272,024,069 shares available for purchase and an average trading volume over the past 10 trading days of 2,054,237, it would take at least 12.625 days for all of the short holders to cover their shorts.

What does this mean to you? At this volume, it'll take more than two trading weeks for shorts to cover. This may indicate a short squeeze play would work! If this stock has good fundamentals and it'll take a while for the short holders to cover, buying now could net you bigger short-term technical gains if and as the price rises.

Is Two Harbors Investment Corp. Stock on Sale?

We believe that Two Harbors Investment Corp. may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Two Harbors Investment Corp. looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy TWO Stock?

Does Two Harbors Investment Corp. have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.