Why Two Harbors Investment Jumped 15.5% Today
Shares of investment REIT Two Harbors Investment (NYSE: TWO) jumped as much as 18.6% in trading on Tuesday after reporting financial results. Shares closed the day up 15.5%.
Comprehensive income fell from $31.5 million a quarter ago to $56.8 million, but on a generally accepted accounting principles (GAAP) net income basis, the company generated a profit of $294.1 million. Book value fell from $16.39 per share just a quarter ago to $15.36 per share, but was still above today's closing price of $11.61.
Management has been adjusting the mortgage portfolio to increase coupon payments and adjust for lost cash flow in older assets. This has been successful, and they expect the acquisition of RoundPoint Mortgage Servicing will save an additional $25 million to $30 million annually.
Source Fool.com
