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

Key Points

• Ishbia Mat, UWM’s CEO, executed multiple pre-arranged Rule 10b5-1 sales of 1,000,574 shares each across late March–April, selling about 11.0 million shares for roughly $41 million and reducing his stake by 8.12% to 11,322,395 shares.
• UWM pays a quarterly $0.10 dividend (annualized yield ~10.1%), but the payout ratio is an extremely high 666.67%, and analysts' consensus is a “Hold” with an average target of $6.24 while the stock trades near its 52-week low (~$3.98).

UWM Holdings Corporation (NYSE:UWMC - Get Free Report) CEO Ishbia Mat sold 1,000,574 shares of the firm's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $3.93, for a total value of $3,932,255.82. Following the completion of the transaction, the chief executive officer directly owned 11,322,395 shares in the company, valued at $44,497,012.35. This trade represents a 8.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Monday, April 20th, Ishbia Mat sold 1,000,574 shares of UWM stock. The stock was sold at an average price of $3.94, for a total transaction of $3,942,261.56.
• On Wednesday, April 15th, Ishbia Mat sold 1,000,574 shares of UWM stock. The shares were sold at an average price of $3.78, for a total value of $3,782,169.72.
• On Monday, April 13th, Ishbia Mat sold 1,000,574 shares of UWM stock. The stock was sold at an average price of $3.66, for a total transaction of $3,662,100.84.
• On Friday, April 10th, Ishbia Mat sold 1,000,574 shares of UWM stock. The stock was sold at an average price of $3.71, for a total transaction of $3,712,129.54.
• On Wednesday, April 8th, Ishbia Mat sold 1,000,574 shares of UWM stock. The shares were sold at an average price of $3.87, for a total transaction of $3,872,221.38.
• On Monday, April 6th, 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 Thursday, April 2nd, Ishbia Mat sold 1,000,574 shares of UWM stock. The stock was sold at an average price of $3.69, for a total transaction of $3,692,118.06.
• On Friday, March 27th, Ishbia Mat sold 1,000,574 shares of UWM stock. The shares were sold at an average price of $3.49, for a total transaction of $3,492,003.26.
• On Tuesday, March 31st, Ishbia Mat sold 1,000,574 shares of UWM stock. The stock was sold at an average price of $3.55, for a total transaction of $3,552,037.70.
• On Wednesday, March 25th, Ishbia Mat sold 1,000,574 shares of UWM stock. The stock was sold at an average price of $3.55, for a total transaction of $3,552,037.70.

UWM Stock Performance

NYSE:UWMC traded up $0.06 during trading hours on Monday, reaching $3.98. 11,460,335 shares of the stock were exchanged, compared to its average volume of 18,066,492. 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 firm has a 50 day simple moving average of $4.04 and a 200-day simple moving average of $4.88. UWM Holdings Corporation has a 52 week low of $3.38 and a 52 week high of $7.14. The stock has a market capitalization of $6.36 billion, a P/E ratio of 66.25 and a beta of 1.93.

UWM (NYSE:UWMC - Get Free Report) last issued its quarterly earnings results on Wednesday, February 25th. The company reported $0.08 earnings per share 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 the consensus estimate of $759.12 million. UWM had a net margin of 0.87% and a negative return on equity of 1.35%. As a group, sell-side analysts forecast that UWM Holdings Corporation will post 0.41 earnings per share for the current fiscal year.

UWM Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Shareholders of record on Thursday, March 19th were paid a dividend of $0.10 per share. The ex-dividend date was Thursday, March 19th. This represents a $0.40 annualized dividend and a yield of 10.1%. UWM's payout ratio is presently 666.67%.

Hedge Funds Weigh In On UWM

Several hedge funds and other institutional investors have recently modified their holdings of UWMC. Brandes Investment Partners LP bought a new position in shares of UWM during the fourth quarter worth about $45,867,000. Azora Capital LP lifted its position in UWM by 230.8% in the 4th quarter. Azora Capital LP now owns 11,296,053 shares of the company's stock valued at $49,477,000 after purchasing an additional 7,881,586 shares during the last quarter. Integrated Investment Consultants LLC acquired a new position in UWM during the 3rd quarter valued at about $32,630,000. Renaissance Technologies LLC acquired a new position in UWM during the 4th quarter valued at about $21,580,000. Finally, First Trust Advisors LP bought a new position in UWM in the 4th quarter worth about $19,303,000. Institutional investors and hedge funds own 53.59% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have recently commented on UWMC. Wall Street Zen raised shares of UWM from a "strong sell" rating to a "hold" rating in a report on Saturday, February 28th. BTIG Research reiterated a "buy" rating and set a $10.00 price objective on shares of UWM in a research note on Tuesday, March 10th. Weiss Ratings cut shares of UWM from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, March 27th. Zacks Research raised UWM from a "strong sell" rating to a "hold" rating in a report on Monday, March 30th. Finally, Compass Point started coverage on UWM in a research report on Tuesday, March 10th. They set a "buy" rating and a $8.50 price target on the stock. Three investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, UWM currently has a consensus rating of "Hold" and an average target price of $6.24.

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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