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Two Harbors Faces $198.9M Liability After Court Ruling

Story Highlights
  • Two Harbors terminated its management agreement with PRCM Advisers in 2020, leading to a legal dispute.
  • In 2025, a court ruled against Two Harbors, resulting in a $198.9 million contingency liability.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Two Harbors Faces $198.9M Liability After Court Ruling

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The latest update is out from Two Harbors ( (TWO) ).

Two Harbors Investment Corp. terminated its management agreement with PRCM Advisers LLC on July 15, 2020, citing material breaches and gross negligence. This led to a legal dispute where PRCM and associated entities accused Two Harbors of misappropriating trade secrets and other violations. On May 23, 2025, a court ruled that Two Harbors did not have a basis to terminate the agreement for cause, leading to a significant financial impact. The company expects to record a $198.9 million contingency liability related to the termination fee and accrued interest, reflecting the ongoing financial and operational implications of the legal proceedings.

The most recent analyst rating on (TWO) stock is a Buy with a $14.50 price target. To see the full list of analyst forecasts on Two Harbors stock, see the TWO Stock Forecast page.

Spark’s Take on TWO Stock

According to Spark, TipRanks’ AI Analyst, TWO is a Neutral.

Two Harbors’ stock presents a mixed outlook. The company benefits from strong cash flow and strategic portfolio management, which are offset by inconsistent revenue, negative net income, and valuation concerns. The earnings call highlighted positive economic returns, but also emphasized challenges such as increased expenses and market volatility. Overall, the stock requires careful consideration due to its financial volatility and market uncertainties.

To see Spark’s full report on TWO stock, click here.

More about Two Harbors

Average Trading Volume: 1,616,639

Technical Sentiment Signal: Strong Sell

Current Market Cap: $1.15B

Learn more about TWO stock on TipRanks’ Stock Analysis page.

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