Insider Selling: UWM (NYSE:UWMC) CEO Sells 1,000,574 Shares of Stock

Key Points

• Ishbia Mat, UWM's CEO, sold 1,000,574 shares on March 23 at an average price of $3.72 (about $3.72M) and has been repeatedly selling millions of UWM shares across February–March, leaving him with 7,332,727 shares — a 12.01% decrease in his position.
• UWM stock trades near $3.74 with a market cap of about $5.99B, and the company announced a quarterly dividend of $0.10 (annualized yield 10.7%) despite a payout ratio of 666.67%, signaling the dividend may be unsustainably high.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report) CEO Ishbia Mat sold 1,000,574 shares of the stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $3.72, for a total transaction of $3,722,135.28. Following the completion of the transaction, the chief executive officer owned 7,332,727 shares of the company's stock, valued at $27,277,744.44. This represents a 12.01% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink.

Ishbia Mat also recently made the following trade(s):

• On Friday, March 20th, Ishbia Mat sold 1,000,574 shares of UWM stock. The shares were sold at an average price of $3.60, for a total transaction of $3,602,066.40.
• On Wednesday, March 18th, Ishbia Mat sold 1,000,574 shares of UWM stock. The stock was sold at an average price of $3.73, for a total transaction of $3,732,141.02.
• On Monday, March 16th, Ishbia Mat sold 1,000,574 shares of UWM stock. The stock was sold at an average price of $3.70, for a total transaction of $3,702,123.80.
• On Friday, March 13th, Ishbia Mat sold 632,874 shares of UWM stock. The shares were sold at an average price of $3.69, for a total transaction of $2,335,305.06.
• On Wednesday, March 11th, Ishbia Mat sold 632,874 shares of UWM stock. The shares were sold at an average price of $3.91, for a total transaction of $2,474,537.34.
• On Monday, March 9th, Ishbia Mat sold 632,874 shares of UWM stock. The stock was sold at an average price of $3.78, for a total value of $2,392,263.72.
• On Thursday, March 5th, Ishbia Mat sold 632,874 shares of UWM stock. The stock was sold at an average price of $4.11, for a total value of $2,601,112.14.
• On Tuesday, March 3rd, Ishbia Mat sold 632,874 shares of UWM stock. The shares were sold at an average price of $4.25, for a total value of $2,689,714.50.
• On Wednesday, February 25th, Ishbia Mat sold 632,874 shares of UWM stock. The shares were sold at an average price of $4.03, for a total value of $2,550,482.22.
• On Monday, February 23rd, Ishbia Mat sold 632,874 shares of UWM stock. The stock was sold at an average price of $4.52, for a total value of $2,860,590.48.

UWM Price Performance

Shares of UWM stock traded up $0.18 during trading on Monday, hitting $3.74. The stock had a trading volume of 20,573,447 shares, compared to its average volume of 19,794,490. The company has a debt-to-equity ratio of 2.64, a current ratio of 1.52 and a quick ratio of 1.52. The firm has a market cap of $5.99 billion, a P/E ratio of 62.37 and a beta of 1.90. The business has a fifty day moving average of $4.77 and a two-hundred day moving average of $5.27. UWM Holdings Corporation has a fifty-two week low of $3.46 and a fifty-two week high of $7.14.

UWM (NYSE:UWMC - Get Free Report) last released its earnings results 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 negative return on equity of 1.35% and a net margin of 0.87%.The firm had revenue of $945.25 million for the quarter, compared to analyst estimates of $759.12 million. On average, sell-side 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. Investors of record on Thursday, March 19th will be issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 10.7%. The ex-dividend date is Thursday, March 19th. UWM's payout ratio is presently 666.67%.

Hedge Funds Weigh In On UWM

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in UWMC. Allworth Financial LP raised its stake in UWM by 5,681.9% during the 3rd quarter. Allworth Financial LP now owns 4,163 shares of the company's stock valued at $25,000 after purchasing an additional 4,091 shares during the period. GAMMA Investing LLC grew its holdings in shares of UWM by 408.7% during the third quarter. GAMMA Investing LLC now owns 5,407 shares of the company's stock valued at $33,000 after buying an additional 4,344 shares in the last quarter. Advisory Services Network LLC acquired a new position in UWM during the third quarter valued at $38,000. Raymond James Financial Inc. purchased a new stake in UWM in the 2nd quarter worth about $35,000. Finally, Farther Finance Advisors LLC lifted its stake in UWM by 1,410.7% in the 4th quarter. Farther Finance Advisors LLC now owns 8,596 shares of the company's stock worth $38,000 after acquiring an additional 8,027 shares in the last quarter. Institutional investors and hedge funds own 53.59% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Jefferies Financial Group set a $4.40 target price on shares of UWM in a report on Wednesday, February 25th. Wall Street Zen upgraded UWM from a "strong sell" rating to a "hold" rating in a research report on Saturday, February 28th. Compass Point began coverage on UWM in a research note on Tuesday, March 10th. They set a "buy" rating and a $8.50 price objective for the company. Barclays decreased their target price on UWM from $7.00 to $6.00 and set an "overweight" rating on the stock in a report on Thursday, February 26th. Finally, Weiss Ratings raised UWM from a "sell (d)" rating to a "hold (c-)" rating in a research report on Thursday, February 26th. Three 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. Based on data from MarketBeat, UWM presently has a consensus rating of "Hold" and a consensus price target of $6.49.

About UWM

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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