Jones Trading analyst Jason Weaver reiterated a Hold rating on Two Harbors Investment (NYSE: TWO)

The analyst commented, "This morning, TWO announced (Link: PR) that the company has entered into a definitive merger agreement pursuant to which CrossCountry will acquire all of the outstanding shares of TWO common stock for $10.80 per share in cash, an increase from their previous offer of $10.75 (see Jones Flash, 3/23/26). In connection with the merger agreement with CrossCountry, TWO terminated its previously announced merger agreement, dated 12/17/2025, with UWMC (Not Covered). CrossCountry, on behalf of TWO, agreed to pay the termination fee of $25.4mm to UWMC in accordance with the terms of the UWMC merger agreement. As a result, TWO's special meeting of stockholders to approve the UWMC merger has been canceled (was scheduled for 4/7/2026)... With TWO BVPS of $11.13 as of 12/31/25 and the expectation that BVPS has marginally declined QTD due to spread widening, we believe the all cash offer of $10.80 is a reasonable offer. Yesterday (3/26/26), shares closed at $11.40, representing a 2.4% premium to 4Q25 BVPS and a 5.5% premium to the accepted offer of $10.80/share. We believe QTD book value is rather in-line with the current offer. Given recent volatility and continued macro uncertainty, we believe TWO shareholders will go through with the CrossCountry proposal."

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Shares of Two Harbors Investment closed at $11.40 yesterday.