10 Small–Cap Stocks Insiders Are Selling Recently

8. Two Harbors Investment Corp. (NYSE:TWO)

Number of insiders selling: 7

Market capitalization: $1.337B

The eighth small-cap stock that insiders have been ditching recently is a real estate investment trust (REIT) focusing on residential mortgage-backed securities (RMBS) and other real estate-related assets. With its operational platform, RoundPoint Morgage Servicing LLC, it is considered among the biggest servicers of conventional loans in the country. Two Harbors’ investment strategy is designed with the goal of bringing returns across various market environments. More than 60% of its capital is allocated to hedged MSR, and the rest of its capital is allocated to hedged RMBS, with the idea of minimizing portfolio exposure to fluctuations in mortgage spreads.

In January seven insiders among which are the company’s CEO, and CIO sold a total of around $911,753 worth of Two Harbors shares, at an average price of $11.21. The stock has gained 19.4% since then and it is now trading at $13.39 per share.

As many as eight Wall Street analysts have an average “Buy” rating on Two Harbors stocks, with a 12-month price target of $13.63, as per data from TipRanks.

For the fourth quarter ended December 31, 2024, Two Harbors incurred a comprehensive loss of $1.6 million, or $0.03 per weighted average basic common share. The company also declared a quarterly dividend of $0.45 per share.

While seven investors have sold some of their holdings in Two Harbors stocks, some institutional investors like Vanguard Group Inc. and Allspring Global Investments Holdings increased their ownership in the fourth quarter.