William Ross Greenberg, the Chief Executive Officer of Two Harbors (NYSE:TWO) Investment Corp. (NYSE:TWO), sold a significant amount of company stock, according to a recent filing with the Securities and Exchange Commission. The transaction occurred on May 21, 2024, and involved the sale of 8,170 shares at a price of $12.6816 per share, totaling approximately $103,608.
The sale was executed to satisfy income tax liabilities that arose from the vesting of restricted stock units granted to Greenberg. It's important to note that the shares were sold according to a pre-arranged trading plan set up on January 26, 2023, under Rule 10b5-1. This rule allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information, providing a defense against claims of insider trading.
Following the sale, Greenberg still holds a substantial number of shares in Two Harbors Investment Corp . The filing also indicated that an additional 3,025 shares are held indirectly by Greenberg's spouse. While he has a pecuniary interest in these shares, he does not have dispositive or voting power over them and disclaims beneficial ownership.
Two Harbors Investment Corp., a Maryland-incorporated real estate investment trust, is headquartered in St. Louis Park, Minnesota. The company specializes in investing, financing, and managing residential mortgage-backed securities and related investments.
The recent transaction by the CEO is part of standard financial management practices for personal holdings and should not necessarily be interpreted as a reflection of the company's current or future performance. Investors often monitor such sales to gain insight into executives' perspectives on their company's valuation and prospects.
InvestingPro Insights
As investors scrutinize the recent stock sale by William Ross Greenberg, CEO of Two Harbors Investment Corp. (NYSE:TWO), it's beneficial to consider the company's financial data and what experts are forecasting. According to InvestingPro data, Two Harbors Investment Corp. boasts a market capitalization of $1.3 billion, and it appears to be trading at a low earnings multiple with a P/E ratio of 5.46, adjusted to a P/E ratio of 5.79 for the last twelve months as of Q1 2024. This could indicate that the stock is potentially undervalued compared to earnings.
Furthermore, the company's dividend yield stands at a significant 14.13%, although there has been a dividend growth decline of 25% in the same period. This high yield, coupled with the company's history of maintaining dividend payments for 16 consecutive years, as per InvestingPro Tips, could be attractive to income-focused investors. The company's revenue has also shown a remarkable growth rate of 5464.45% over the last twelve months as of Q1 2024, which could signal strong business performance.
For those interested in a deeper analysis, InvestingPro offers additional insights and tips, including the anticipation of a sales decline in the current year and the company's profitability over the last twelve months. Subscribers can access these valuable tips and more by visiting https://www.investing.com/pro/TWO and can benefit from an extra 10% off a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24. There are currently 9 additional InvestingPro Tips available to subscribers that could further inform investment decisions regarding Two Harbors Investment Corp.
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