Two Harbors (NYSE:TWO) Investment Corp. (NYSE:TWO) Chief Financial Officer, Mary Kathryn Riskey, has recently sold a portion of her company stock, according to the latest filings. The transaction, which took place on May 21, 2024, involved the sale of 3,870 shares at a price of $12.6816 per share, resulting in a total sale amount of approximately $49,077.
The sale was conducted to satisfy income tax liabilities that arose from the vesting of restricted stock units previously granted to Riskey. It was carried out under a trading plan established on February 17, 2021, in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, which 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.
Following this transaction, CFO Riskey still holds a significant stake in Two Harbors Investment Corp ., with 79,735 shares remaining in her possession. The sale represents a routine financial management move and is often a part of an executive's personal financial planning strategy.
Investors and market watchers often keep an eye on insider transactions as they can provide insights into an executive's view of the company's stock value and future performance. However, sales like these, especially when conducted under a prearranged trading plan, are not uncommon and may not necessarily signal any change in company fundamentals or executive outlook.
Two Harbors Investment Corp., a Maryland-based real estate investment trust, specializes in investing in residential mortgage-backed securities, residential mortgage loans, and other financial assets. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol TWO.
InvestingPro Insights
Two Harbors Investment Corp. (NYSE:TWO) has demonstrated financial metrics that may interest investors looking for opportunities in the real estate investment trust sector. With a market capitalization of $1.3 billion, the company is trading at an earnings multiple of 5.46, which is relatively low and might indicate a potentially undervalued stock. When adjusted for the last twelve months as of Q1 2024, the P/E ratio stands at 5.79. This could suggest that the company is more affordable compared to its earnings than other companies in the sector.
From a profitability standpoint, Two Harbors has been profitable over the last twelve months, with a robust gross profit margin of 88.07%. This level of profitability is further underscored by an operating income margin of 49.82%, indicating efficient management of its operations. Moreover, the company's dividend yield as of April 2024 is an impressive 14.13%, despite a dividend growth decline of 25.0%. This high yield, coupled with a track record of maintaining dividend payments for 16 consecutive years, may appeal to income-focused investors.
InvestingPro Tips reveal that analysts predict the company will be profitable this year, which aligns with the company's recent performance. However, they also anticipate a sales decline in the current year. For investors weighing the potential long-term value and income generation, these insights are crucial. With additional tips available on InvestingPro, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, accessing a total of 9 InvestingPro Tips for Two Harbors Investment Corp.
While the recent insider sale by CFO Mary Kathryn Riskey is part of a routine financial management strategy, these InvestingPro data points and tips provide a broader context for investors considering the company's stock. It's worth noting that the company's stock price has experienced volatility, with a 1-week total return of -1.7% but an 18.12% return over the past year, reflecting the dynamic nature of the market.
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