Boston, MA 07/10/2013 (wallstreetpr) – Two Harbors Investment Corp (NYSE:TWO) closed at $9.89, decreased by 0.80% in its previous day’s trading session. Director purchased the stocks of the company. Recently, the company’s Director James J. Bender has purchased 10,000 shares for a total value of $11.46 million at a price of $11.46 per share on May 24.
The company has been successful in posting a strong book value growth and has also diversified its asset base which includes non-agency exposure, the new potential mortgage servicing rights and new production securitization as per the Vice President of the Credit Sussie Group Dougals Harter. He expects that the company’s REIT would be trading at a higher premium in the future and will lead the company’s growth to achieve new milestones.
Harter has remarked that the company has a history of growth in its book value and the capabilities with which it diversifies their market risks adds to a less volatile performance to grow further. He also said that the REIT is supported by an efficient management team around the industry.
The company’s large exposure to nonagency RMBS and the focus to improve home prices and delinquency rates, leads this hybrid REIT to post a double overall economic development since the beginning of the year. The company with its hybrid flexibility models are enhancing and improving economically in their agency mortgage REIT peers. The company has made dynamic shifts in its agencies portfolio in the recent quarter such as owning interest only strips and subprime bonds.
The company has recently announced to pay a dividend of $0.31 for the second quarter to their shareholder’s on July 23, 2013. The company has a practice of paying dividends out of their current estimate of taxable earnings and not the GAAP earnings. There lies a difference in the Taxable and GAAP earnings due to the differences in discounts accretion and premium amortization.
