Over the past year, Transocean has seen some serious insider buying. In that time, the largest single purchase by an insider was when an independent director bought $21 million worth of shares at a price of $4.20 apiece. If the director was bullish at that level, then the current trading range offers a good entry point.
BTIG Research started coverage this past week and has an $8 target price. Transocean stock has traded as high as $5.56 a share in the past year but changed hands at $3.75 on Friday’s close.
Two Harbors Investment
This off-the-radar small-cap company could provide the biggest total return capability to investors now. Two Harbors Investment Corp. (NYSE: TWO) operates as a REIT that focuses on investing in, financing and managing residential mortgage-backed securities (RMBS), non-agency securities, mortgage servicing rights and other financial assets in the United States.
The company’s target assets include agency RMBS collateralized by fixed-rate mortgage loans, adjustable-rate mortgage loans and hybrid adjustable-rate mortgages and other assets, such as financial and mortgage-related assets, including non-agency securities and non-hedging transactions.
Last month Two Harbors announced that Matrix Financial Services, a wholly owned subsidiary, has entered into a definitive stock purchase agreement to acquire RoundPoint Mortgage Servicing from Freedom Mortgage.
Matrix has agreed to engage RoundPoint as a subservicer prior to the closing date and expects to begin transferring loans to RoundPoint in the fourth quarter of 2022. Upon closing, all servicing licenses and capabilities will remain with RoundPoint, and RoundPoint will become a wholly owned subsidiary of Matrix. The parties expect to close the transaction in 2023, subject to the satisfaction of customary closing conditions and the receipt of required regulatory and government-sponsored entity approvals.
Two Harbors Investment comes with a 13.99% distribution. The $5.50 JMP Securities target price could head higher soon. The consensus target is $5.21, and a share price of $4.95 was seen on Friday’s close.
These are five stocks for aggressive investors looking to get share count leverage on companies that have sizable upside potential. While not suited for all investors, they are not penny stocks with absolutely no history or liquidity, and major Wall Street firms have research coverage.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.