Two Harbors (NYSE:TWO) Investment Corp. (NYSE:TWO) experienced a notable transaction within its ranks, as Director Stephen G. Kasnet sold shares in the company. On May 17, Kasnet parted with a total of 12,790 shares of common stock at an average price of $13.0159, resulting in a transaction value of approximately $166,473.
The sale was conducted to meet tax obligations associated with the vesting of restricted stock units. According to the filing, this move was pre-arranged through a trading plan established on August 10, 2023, under Rule 10b5-1, which allows insiders to set up predetermined trading plans for selling stocks at a later date.
Following the sale, Kasnet still holds 97,569 shares of common stock in the real estate investment trust. Additionally, the filing disclosed that Kasnet maintains ownership of 10,000 shares of Series A Preferred Stock, indicating continued investment in the company.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's performance and future prospects. While sales to cover tax obligations are quite routine, the market tends to keep a close watch on insider trading patterns for a broader understanding of company health and executive confidence.
Two Harbors Investment Corp ., based in St. Louis Park, Minnesota, is a real estate investment trust focusing on investing, financing, and managing residential mortgage-backed securities and other financial assets.
Shareholders and potential investors can access the full details of the transaction through the company's recent SEC Form 4 filing.
InvestingPro Insights
Amidst the insider trading activity at Two Harbors Investment Corp. (NYSE:TWO), investors keeping an eye on the company's financial health will find several key metrics from InvestingPro particularly enlightening. With a market capitalization of $1.34 billion USD, the company's valuation seems modest with a P/E Ratio of 5.6, which suggests that the stock is trading at a low earnings multiple. This could be an indicator of an undervalued stock, especially when considering the adjusted P/E ratio over the last twelve months as of Q1 2024 is slightly higher at 5.92.
Moreover, Two Harbors boasts a substantial gross profit margin of 88.07% over the same period, reflecting efficient management and a strong competitive position in its industry. The company's dividend yield as of April 2024 stands at an impressive 13.81%, a figure that is particularly attractive to income-focused investors. This significant dividend payout is supported by the company's history of maintaining dividend payments for 16 consecutive years, a testament to its commitment to returning value to shareholders.
For those considering a deeper dive into the company's financials and future prospects, InvestingPro offers additional insights. With InvestingPro Tips, investors can learn that Two Harbors is expected to be profitable this year and has been profitable over the last twelve months. However, analysts anticipate a sales decline in the current year, a factor that should be weighed against the company's strong historical dividend payments and current earnings multiple.
To access a comprehensive list of additional InvestingPro Tips for Two Harbors Investment Corp., please visit https://www.investing.com/pro/TWO. Investors interested in an InvestingPro subscription can enjoy an extra 10% off a yearly or biyearly Pro and Pro+ subscription using the coupon code PRONEWS24.
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