Great Hill Capital LLC Boosts Holdings in UWM Holdings Corporation $UWMC

Key Points

• Great Hill Capital LLC boosted its stake in UWM by 9,900% in Q4, acquiring 1,980,000 additional shares to hold 2,000,000 shares (about 0.13% of the company) according to its SEC filing.
• CEO Ishbia Mat sold 1,000,574 shares at an average price of $3.70 on March 16, and insiders have sold 26,297,816 shares worth $112.1M in the last quarter despite insiders collectively owning 87.5% of UWM.
• UWM recently paid a $0.10 quarterly dividend (annualized $0.40), which implies a 10.5% yield but carries a 666.67% payout ratio, suggesting the dividend may be unsustainable.

Great Hill Capital LLC grew its stake in shares of UWM Holdings Corporation (NYSE:UWMC - Free Report) by 9,900.0% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,000,000 shares of the company's stock after purchasing an additional 1,980,000 shares during the period. Great Hill Capital LLC owned approximately 0.13% of UWM worth $88,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. Integrated Investment Consultants LLC purchased a new stake in UWM in the third quarter worth about $32,630,000. Balyasny Asset Management L.P. grew its holdings in shares of UWM by 116.6% during the 2nd quarter. Balyasny Asset Management L.P. now owns 5,991,072 shares of the company's stock worth $24,803,000 after acquiring an additional 3,224,806 shares during the period. Two Sigma Investments LP grew its holdings in shares of UWM by 165.5% during the 3rd quarter. Two Sigma Investments LP now owns 4,988,898 shares of the company's stock worth $30,382,000 after acquiring an additional 3,109,591 shares during the period. Holocene Advisors LP raised its position in shares of UWM by 1,986.0% in the 3rd quarter. Holocene Advisors LP now owns 3,231,243 shares of the company's stock worth $19,678,000 after acquiring an additional 3,076,340 shares in the last quarter. Finally, Maple Rock Capital Partners Inc. bought a new position in shares of UWM in the 3rd quarter worth approximately $14,433,000. Hedge funds and other institutional investors own 53.59% of the company's stock.

Insider Transactions at UWM

In related news, CEO Ishbia Mat sold 1,000,574 shares of the stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $3.70, for a total transaction of $3,702,123.80. Following the sale, the chief executive officer directly owned 11,335,023 shares of the company's stock, valued at approximately $41,939,585.10. This represents a 8.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In the last quarter, insiders have sold 26,297,816 shares of company stock valued at $112,113,753. Insiders own 87.50% of the company's stock.

UWM Stock Performance

UWM stock opened at $3.80 on Thursday. The company has a quick ratio of 1.52, a current ratio of 1.52 and a debt-to-equity ratio of 2.64. The company has a market capitalization of $6.08 billion, a P/E ratio of 63.37 and a beta of 1.93. The stock's 50 day moving average is $4.08 and its 200 day moving average is $4.92. UWM Holdings Corporation has a twelve month low of $3.38 and a twelve month high of $7.14.

UWM (NYSE:UWMC - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The company reported $0.08 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.09 by ($0.01). UWM had a net margin of 0.87% and a negative return on equity of 1.35%. The company had revenue of $945.25 million for the quarter, compared to analysts' expectations of $759.12 million. On average, equities research analysts predict that UWM Holdings Corporation will post 0.2 earnings per share for the current fiscal year.

UWM Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Thursday, March 19th were paid a $0.10 dividend. The ex-dividend date was Thursday, March 19th. This represents a $0.40 dividend on an annualized basis and a yield of 10.5%. UWM's payout ratio is presently 666.67%.

Analysts Set New Price Targets

Several research firms recently weighed in on UWMC. Jefferies Financial Group set a $4.40 price target on UWM in a research report on Wednesday, February 25th. BTIG Research reiterated a "buy" rating and issued a $10.00 price objective on shares of UWM in a report on Tuesday, March 10th. Weiss Ratings lowered UWM from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, March 27th. Keefe, Bruyette & Woods dropped their target price on shares of UWM from $6.00 to $5.00 and set a "market perform" rating on the stock in a report on Friday, April 10th. Finally, Wall Street Zen raised shares of UWM from a "strong sell" rating to a "hold" rating in a research report on Saturday, February 28th. Three analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $6.24.

UWM Company Profile

United Wholesale Mortgage NYSE: UWMC is a leading mortgage lender in the United States specializing in the wholesale channel. The company partners with independent mortgage brokers, community banks and credit unions to offer a full suite of residential mortgage products. Through its network of third-party originators, United Wholesale Mortgage underwrites, funds and closes loans, allowing its partners to focus on customer acquisition and service.

The company’s product offerings include conventional fixed- and adjustable-rate mortgages, Federal Housing Administration (FHA) loans, Veterans Affairs (VA) loans, U.S.

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