Vanguard Group Inc. Raises Position in UWM Holdings Corporation $UWMC

Key Points

• Vanguard raised its stake in UWM by 6.2% in Q3, buying 1,010,907 shares to own 17,282,688 shares (about 1.08% of the company) valued at roughly $105.25 million.
• UWM announced a $0.10 quarterly dividend (annualized $0.40), implying a 9.6% yield but an outsized payout ratio of 666.67%.
• Insider selling was heavy: CEO Ishbia sold 632,874 shares at an average $4.03 (a 15.97% reduction in his position), and insiders disposed of about 19.1 million shares (~$96.8 million) over the last quarter.

Vanguard Group Inc. raised its holdings in shares of UWM Holdings Corporation (NYSE:UWMC - Free Report) by 6.2% in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 17,282,688 shares of the company's stock after buying an additional 1,010,907 shares during the period. Vanguard Group Inc. owned about 1.08% of UWM worth $105,252,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of UWMC. 683 Capital Management LLC bought a new stake in shares of UWM in the 2nd quarter valued at about $19,872,000. Balyasny Asset Management L.P. increased its stake in UWM by 116.6% in the 2nd quarter. Balyasny Asset Management L.P. now owns 5,991,072 shares of the company's stock worth $24,803,000 after purchasing an additional 3,224,806 shares during the period. Azora Capital LP purchased a new position in UWM in the 2nd quarter worth approximately $9,032,000. Bank of America Corp DE lifted its position in UWM by 93.8% in the second quarter. Bank of America Corp DE now owns 3,758,600 shares of the company's stock valued at $15,561,000 after purchasing an additional 1,819,129 shares during the last quarter. Finally, First Trust Advisors LP purchased a new stake in shares of UWM during the second quarter valued at approximately $4,992,000. 53.59% of the stock is owned by institutional investors.

UWM Stock Performance

UWM stock opened at $4.18 on Thursday. UWM Holdings Corporation has a fifty-two week low of $3.79 and a fifty-two week high of $7.14. The stock's 50 day simple moving average is $4.96 and its two-hundred day simple moving average is $5.43. The company has a debt-to-equity ratio of 2.64, a quick ratio of 1.52 and a current ratio of 1.52. The stock has a market cap of $6.69 billion, a price-to-earnings ratio of 69.67 and a beta of 1.90.

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

UWM Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Thursday, March 19th will be issued a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 9.6%. The ex-dividend date is Thursday, March 19th. UWM's payout ratio is 666.67%.

Insider Buying and Selling at UWM

In related news, CEO Ishbia Mat sold 632,874 shares of the stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $4.03, for a total value of $2,550,482.22. Following the completion of the transaction, the chief executive officer directly owned 3,330,659 shares in the company, valued at $13,422,555.77. This trade represents a 15.97% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Over the last quarter, insiders have sold 19,123,478 shares of company stock valued at $96,798,007. 87.50% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

UWMC has been the topic of several analyst reports. Weiss Ratings raised shares of UWM from a "sell (d)" rating to a "hold (c-)" rating in a research note on Thursday, February 26th. Wall Street Zen raised shares of UWM from a "strong sell" rating to a "hold" rating in a report on Saturday, February 28th. Jefferies Financial Group set a $4.40 price objective on shares of UWM in a research report on Wednesday, February 25th. The Goldman Sachs Group set a $5.00 target price on UWM in a research note on Tuesday, January 6th. Finally, Barclays reduced their price target on UWM from $7.00 to $6.00 and set an "overweight" rating on the stock in a report on Thursday, February 26th. Two investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $6.20.

UWM 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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