Stock Analysis

The President of Two Harbors Investment Corp. (NYSE:TWO), William Greenberg, Just Bought 23% More Shares

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NYSE:TWO
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Potential Two Harbors Investment Corp. (NYSE:TWO) shareholders may wish to note that the President, William Greenberg, recently bought US$230k worth of stock, paying US$6.58 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 23%.

See our latest analysis for Two Harbors Investment

The Last 12 Months Of Insider Transactions At Two Harbors Investment

Notably, that recent purchase by William Greenberg is the biggest insider purchase of Two Harbors Investment shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$6.60. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Two Harbors Investment insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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NYSE:TWO Insider Trading Volume February 19th 2021

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Two Harbors Investment

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Two Harbors Investment insiders own 0.8% of the company, worth about US$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Two Harbors Investment Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Two Harbors Investment shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Two Harbors Investment is showing 2 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

Of course Two Harbors Investment may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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