Insider Activity to Watch: Two Harbors Investment Corp

Two Harbors Investment Corp (NYSE:TWO) insider has recently participated in insider trading activity. CFO and Treasurer, Farrell Brad sold 297 shares for $2,174 via one transaction Feb 09. Following the transaction, the insider now owns 393,615 shares in total, priced at $2908814.85 as of Tuesday. Another notable insider trading was done by the same insider on Feb 08. Farrell Brad Sold 13,528 shares at an average price of $7.39 for a total of $99,972. Moreover, SIERING THOMAS carried out a buy of 5,000 shares at $7.15 each on Feb 12. The transaction amounted to $35,735. Chief Accounting Officer RISKEY MARY KATHRYN sold 1,550 shares for $11,455 through one transaction Feb 08. Following this sale, this insider’s stake in the company comprises 44,607 shares, priced at $329645.73 as of Tuesday.

The stock has experienced a total of 11 insider trades in the past three months. These trades include 4 sell activities and 7 buy trades. Furthermore, over the past 12 months, the stock was traded 42 times by insiders. In 15 of these trades, the insider was a seller while an employee of the company was the buyer in just 27 instances.

Two Harbors Investment Corp (TWO) on February 3, 2016 announced its financial results for the quarter ended December 31, 2015.

2015 Summary

• Sponsored seven securitizations issuing securities backed by approximately $2.0 billion in unpaid principal balance (UPB) of prime jumbo residential mortgage loans, attaining stated goal of sponsoring six to ten during the year.


• Substantially developed commercial real estate effort including adding senior and mezzanine commercial real estate assets with an aggregate carrying value of $661.0 million at December 31, 2015.


• Added six flow-sale MSR relationships and completed four bulk MSR acquisitions.


• Generated total annual return on book value of 0.5%, after accounting for dividends of $1.04.(1)


• Repurchased 13.7 million shares, at an average price of $8.43 per share, which was accretive to book value by $0.07 per share.

Quarterly Summary

• Repurchased 12.3 million shares of common stock at an average price of $8.37 per share, which was accretive to book value by $0.06 per share.


• Added commercial real estate assets with an aggregate carrying value of $371.9 million.


• Book value was $10.11 per common share, representing a 0.7%(2) quarterly total return on book value, after accounting for a dividend of $0.26 per share.


• Reported Core Earnings of $72.1 million, or $0.20 per weighted average common share.(3)


• Sponsored a securitization issuing securities backed by approximately $332.8 million UPB of prime jumbo residential mortgage loans.

“We are proud of our achievements in 2015. During the year, we sponsored seven prime jumbo securitizations and were a leading issuer in the market. We also added MSR through both flow-sale and bulk purchases,” stated Thomas Siering, Two Harbors’ President and Chief Executive Officer. “Additionally, we completed the build out of our commercial real estate team and began deploying capital to these assets. We believe allocating resources and capital thusly will build franchise value for our stockholders over the long-term.”