On May 22, 2023, Mary Riskey, the Chief Financial Officer (CFO) of Two Harbors Investment Corp (TWO, Financial), sold 3,755 shares of the company's stock. This recent transaction has caught the attention of investors and market analysts, as it may provide insights into the company's financial health and future prospects.
Who is Mary Riskey?
Mary Riskey serves as the CFO of Two Harbors Investment Corp, a position she has held since 2018. With extensive experience in finance and accounting, Riskey plays a crucial role in the company's financial management and strategic planning. Prior to joining Two Harbors, she held various leadership positions in finance and accounting at other organizations.
Two Harbors Investment Corp's Business Description
Two Harbors Investment Corp is a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), mortgage servicing rights, and other financial assets. The company's primary objective is to provide attractive risk-adjusted returns to its stockholders over the long term, primarily through dividends and secondarily through capital appreciation. By investing in a diverse portfolio of assets, Two Harbors aims to mitigate risks and generate stable returns for its investors.
Mary Riskey's Insider Trading Activity
Over the past year, Mary Riskey has sold a total of 8,124 shares and has not purchased any shares. This recent sale of 3,755 shares is part of a broader trend of insider selling at Two Harbors Investment Corp.
Insider Trends
The insider transaction history for Two Harbors Investment Corp reveals that there have been no insider buys over the past year. In contrast, there have been 20 insider sells during the same period. This trend may indicate that insiders are less optimistic about the company's future prospects or are taking advantage of favorable market conditions to realize gains on their investments.
Valuation
On the day of Mary Riskey's recent sale, shares of Two Harbors Investment Corp were trading at $12.33 apiece, giving the stock a market capitalization of $1,137.746 million.
The GF Value is an intrinsic value estimate developed by GuruFocus, which is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
By considering these factors, investors can gain a better understanding of Two Harbors Investment Corp's valuation and determine whether the stock is fairly priced, undervalued, or overvalued. The recent insider selling activity, coupled with the company's valuation, may provide valuable insights for investors looking to make informed decisions about their investments in Two Harbors Investment Corp.
Conclusion
The recent sale of 3,755 shares by CFO Mary Riskey is part of a broader trend of insider selling at Two Harbors Investment Corp. While this activity may raise concerns for some investors, it is essential to consider the company's valuation and overall financial health before making any investment decisions. By analyzing insider trading activity, valuation metrics, and the company's business description, investors can gain a more comprehensive understanding of Two Harbors Investment Corp and its potential for future growth.
