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

Key Points

• UWM Holdings Corporation has declared a quarterly dividend of $0.10 per share, which is scheduled for distribution on October 9, for shareholders of record on September 18, representing an annualized yield of 8.8%.
• The company reported a negative earnings per share of ($0.23) for its last quarter, which fell short of analysts' expectations, despite achieving revenue of $613.37 million.
• Insider transactions revealed that CEO Ishbia Mat sold over 400,000 shares of UWM stock recently, decreasing his holdings by approximately 11.43%.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report) declared a quarterly dividend on Friday, August 8th, Wall Street Journal reports. Shareholders of record on Thursday, September 18th will be paid a dividend of 0.10 per share on Thursday, October 9th. This represents a c) dividend on an annualized basis and a yield of 7.5%. The ex-dividend date is Thursday, September 18th.

UWM has a payout ratio of 83.3% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline. Research analysts expect UWM to earn $0.46 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 87.0%.

UWM Stock Up 5.8%

NYSE:UWMC traded up $0.30 during midday trading on Wednesday, reaching $5.36. 4,669,785 shares of the stock traded hands, compared to its average volume of 5,555,056. The company has a debt-to-equity ratio of 1.85, a quick ratio of 1.55 and a current ratio of 1.55. UWM has a 12-month low of $3.80 and a 12-month high of $9.74. The stock has a market capitalization of $8.56 billion, a PE ratio of -107.30 and a beta of 1.70. The business has a 50-day moving average of $4.25 and a two-hundred day moving average of $4.93.

UWM (NYSE:UWMC - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported $0.16 earnings per share for the quarter, topping analysts' consensus estimates of $0.06 by $0.10. The firm had revenue of $758.70 million for the quarter, compared to analyst estimates of $621.60 million. UWM had a net margin of 0.48% and a negative return on equity of 5.56%. On average, equities analysts forecast that UWM will post 0.2 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Ishbia Mat sold 400,036 shares of UWM stock in a transaction that occurred on Monday, August 11th. The shares were sold at an average price of $4.58, for a total transaction of $1,832,164.88. Following the sale, the chief executive officer owned 1,898,632 shares in the company, valued at $8,695,734.56. This trade represents a 17.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders have sold a total of 9,200,828 shares of company stock worth $38,935,504 in the last 90 days. Company insiders own 94.11% of the company's stock.

Institutional Trading of UWM

Hedge funds and other institutional investors have recently made changes to their positions in the stock. First Trust Advisors LP grew its position in shares of UWM by 886.9% during the fourth quarter. First Trust Advisors LP now owns 3,727,477 shares of the company's stock worth $21,880,000 after acquiring an additional 3,349,779 shares during the last quarter. AQR Capital Management LLC lifted its holdings in UWM by 1,144.7% in the 1st quarter. AQR Capital Management LLC now owns 2,496,805 shares of the company's stock valued at $13,633,000 after acquiring an additional 2,296,205 shares during the last quarter. Basswood Capital Management L.L.C. acquired a new stake in shares of UWM during the fourth quarter valued at approximately $6,602,000. Geode Capital Management LLC raised its holdings in shares of UWM by 47.5% during the second quarter. Geode Capital Management LLC now owns 2,414,282 shares of the company's stock valued at $9,997,000 after acquiring an additional 777,264 shares during the period. Finally, AGF Management Ltd. acquired a new position in UWM in the 2nd quarter valued at approximately $3,072,000. Institutional investors own 53.59% of the company's stock.

About UWM

UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.