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 move comes amidst a year of insider selling activity for the company, with no insider buys recorded over the same period. In this article, we will take a closer look at Mary Riskey's role in the company, Two Harbors Investment Corp's business, and the relationship between insider transactions and stock price.
Who is Mary Riskey?
Mary Riskey serves as the CFO of Two Harbors Investment Corp, a position she has held since 2018. In her role, Riskey is responsible for overseeing the company's financial operations, including financial reporting, risk management, and investor relations. With over 20 years of experience in the financial services industry, Riskey has a strong background in mortgage-backed securities, structured finance, and risk management.
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 (MSR), 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. The company is externally managed and advised by PRCM Advisers LLC, a wholly-owned subsidiary of Pine River Capital Management L.P.
Mary Riskey's Insider Trading Activity
Over the past year, Mary Riskey has sold a total of 8,124 shares of Two Harbors Investment Corp and has not purchased any shares. This recent sale of 3,755 shares represents a continuation of this selling trend.
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 suggests that insiders may be less optimistic about the company's future prospects or are taking advantage of the current stock price to realize gains.
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 $1,162.879 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 the potential implications of insider transactions on the stock price. While it is essential to consider other factors such as the company's financial health, growth prospects, and overall market conditions, analyzing insider transactions can provide valuable insights into the sentiment of those with intimate knowledge of the company's operations.
In conclusion, the recent sale of 3,755 shares by CFO Mary Riskey adds to the trend of insider selling at Two Harbors Investment Corp over the past year. With no insider buys recorded during the same period, investors should keep a close eye on the company's performance and insider transactions to make informed decisions about their investments.
