UWM Holdings Corporation (NYSE:UWMC) Plans Quarterly Dividend of $0.10

Key Points

• UWM declared a $0.10 quarterly dividend payable July 9 to shareholders of record June 18, implying an annualized yield of 11.5%; the payout ratio is currently 83.3% (expected to be ~76.9% next year), so the dividend is covered now but could be vulnerable if earnings decline.
• The company beat estimates last quarter, reporting $0.09 EPS (vs. $0.06 expected) and revenue of $901.4M (vs. $707.9M), though net margin was only 0.87% and return on equity was negative 1.35%.
• Significant insider activity: CEO Ishbia sold 1,003,333 shares at about $3.57 under a 10b5‑1 plan, insiders have sold ~32.17M shares in the past 90 days and still own ~80.3% of the stock.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report) declared a quarterly dividend on Wednesday, May 6th. Investors of record on Thursday, June 18th will be paid a dividend of 0.10 per share on Thursday, July 9th. This represents a c) dividend on an annualized basis and a yield of 11.5%. The ex-dividend date is Thursday, June 18th.

UWM has a payout ratio of 83.3% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Research analysts expect UWM to earn $0.52 per share next year, which means the company should continue to be able to cover its $0.40 annual dividend with an expected future payout ratio of 76.9%.

UWM Trading Up 1.6%

NYSE:UWMC traded up $0.06 during trading hours on Wednesday, reaching $3.49. The company's stock had a trading volume of 49,367,885 shares, compared to its average volume of 17,573,375. The firm has a market capitalization of $5.58 billion, a price-to-earnings ratio of 58.08 and a beta of 1.78. The firm has a 50-day simple moving average of $3.82 and a 200-day simple moving average of $4.75. UWM has a 1 year low of $3.38 and a 1 year high of $7.14. The company has a debt-to-equity ratio of 2.64, a quick ratio of 1.52 and a current ratio of 1.52.

UWM (NYSE:UWMC - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported $0.09 EPS for the quarter, topping analysts' consensus estimates of $0.06 by $0.03. The company had revenue of $901.43 million for the quarter, compared to analysts' expectations of $707.88 million. UWM had a net margin of 0.87% and a negative return on equity of 1.35%. Research analysts expect that UWM will post 0.41 EPS for the current fiscal year.

Insider Activity

In other news, CEO Ishbia Mat sold 1,003,333 shares of the business's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $3.57, for a total transaction of $3,581,898.81. Following the transaction, the chief executive officer directly owned 2,995,754 shares of the company's stock, valued at approximately $10,694,841.78. The trade was a 25.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 32,166,663 shares of company stock worth $124,274,044 over the last 90 days. 80.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On UWM

Hedge funds have recently made changes to their positions in the business. Integrated Investment Consultants LLC purchased a new position in shares of UWM during the third quarter valued at about $32,630,000. Tudor Investment Corp ET AL purchased a new position in shares of UWM during the third quarter valued at about $12,237,000. Alight Capital Management LP purchased a new position in shares of UWM during the third quarter valued at about $3,958,000. Vanguard Group Inc. increased its position in shares of UWM by 6.2% during the third quarter. Vanguard Group Inc. now owns 17,282,688 shares of the company's stock valued at $105,252,000 after buying an additional 1,010,907 shares during the period. Finally, Luxor Capital Group LP purchased a new position in shares of UWM during the third quarter valued at about $7,473,000. 53.59% of the stock is owned by hedge funds and other institutional investors.

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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