"With the UWMC share price down about 26% since the deal announcement, it is possible that the acquisition price would need to be increased for the deal to be approved by TWO shareholders, Bose George and Frankie Labetti, analysts at Keefe, Bruyette & Woods, wrote in a flash note Monday morning."
"In a filing with the Securities and Exchange Commission last week, UWM chairman, president and CEO Mat Ishbia said the company expects total revenue of $800 million to $900 million in the first quarter of 2026 and between $3.5 billion and $4.5 billion for the full year."
"Even though UWMC's stock is confronting volatility right now, we don't think it detracts from the longer-term vision and motivation from Two's perspective, which is to merge with a scaled originator in order to more effectively compete on recapture and more optimally manage its prepayment risk, Hagen wrote."
UWM announced an all-stock acquisition of Two Harbors in December, with Two Harbors shareholders receiving 2.3328 UWMC shares per share, valuing the deal at approximately $1.3 billion. UWMC stock has declined about 26% since the announcement, trading at $3.68 compared to $5.12 at deal announcement. Analysts suggest the acquisition price may need to increase for Two Harbors shareholders to approve the merger. UWM recently raised revenue guidance, projecting $800-900 million for Q1 2026 and $3.5-4.5 billion for full-year 2026, exceeding previous projections and analyst consensus. Two Harbors shares also declined from $10 to $8.99 during this period. Despite market volatility, analysts remain relatively confident shareholders will approve the merger.
Read at www.housingwire.com
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