Two Harbors Investment Corp. (NYSE:TWO) shares traded modestly higher Monday after UWM Holdings Corporation (NYSE:UWMC) raised its acquisition proposal to $12.50 per share, topping CrossCountry Mortgage's pending $12.00-per-share merger offer.

UWM Raises Offer For Two Harbors

UWMC's revised proposal offers Two Harbors shareholders either $12.50 in cash or 2.3328 shares of UWMC stock, with no cap or proration on cash elections.

The company said the proposal provides superior value while preserving the optionality of the stock consideration.

UWMC also urged Two Harbors shareholders to vote against the CrossCountry merger at the May 19, 2026, special meeting and review its preliminary proxy materials filed with the SEC.

UWMC Criticizes Two Harbors Board

In an open letter, UWMC criticized the Two Harbors board for refusing to engage on its proposals and alleged management payouts influenced support for the CrossCountry deal.

UWMC said it remains open to amendments, including a reverse termination fee and changes to the election mechanism.

The company added that it expects to complete a transaction within approximately two months of signing an agreement, citing its regulatory relationships and nationwide licensing footprint.

"Our offer is again a clearly superior offer, providing higher value for stockholders on a cash basis, preserving optionality for equity consideration for those that prefer it, and maintaining a tight timeline to close," UWMC said in its letter.

CrossCountry Previously Raised Offer

Last Friday, Two Harbors Investment and CrossCountry Mortgage amended their merger agreement to raise the all-cash offer to $12.00 per share from $11.30, representing a 21% premium to the unaffected share price.

Two Harbors' board unanimously reaffirmed its recommendation supporting the CrossCountry transaction.

Two Harbors Technical Outlook: Trend, RSI And Key Levels

Technically, Two Harbors shares are showing strong momentum. The stock is trading above both its 20-day SMA of $11.50 and 50-day SMA of $10.84, signaling a continued uptrend.

The RSI stands at 74.60, indicating overbought conditions that could lead to a pullback if momentum cools. Meanwhile, the 50-day SMA has crossed above the 200-day SMA, forming a bullish golden cross pattern.

  • Key Resistance: $12.50 — a nearby level where rebounds can stall.
  • Key Support: $11.50 — this level aligns with the 20-day SMA, providing a potential floor for price action.

Two Harbors Earnings Preview And Analyst Ratings

Looking further out, the next major catalyst for the stock arrives with the July 27, 2026 (estimated) earnings report.

  • EPS Estimate: 21 cents (Down from 28 cents YoY)
  • Revenue Estimate: $-7.86 million (Up from $-18.12 million YoY)

Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price forecast of $12.50. Recent analyst moves include:

  • JP Morgan: Downgraded to Underweight (Lowers forecast to $11.00) (April 16)
  • Compass Point: Downgraded to Neutral (March 27)
  • JP Morgan: Neutral (Lowers forecast to $12.50) (February 4)

Price Action: Two Harbors Investment shares were up 0.64% at $12.63 and UWM Holdings shares were down 4.14% at $3.24 at the time of publication on Monday, according to Benzinga Pro data.

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