UWM Holdings Corporation (NYSE:UWMC) to Issue $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 given a dividend of 0.10 per share on Thursday, October 9th. This represents a c) annualized dividend and a yield of 8.8%. The ex-dividend date is Thursday, September 18th.

UWM has a dividend 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 decline. 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 Trading Up 0.9%

UWM stock traded up $0.04 during mid-day trading on Friday, hitting $4.54. 11,891,407 shares of the stock were exchanged, compared to its average volume of 5,464,497. The company has a quick ratio of 1.50, a current ratio of 1.50 and a debt-to-equity ratio of 1.87. UWM has a 12 month low of $3.80 and a 12 month high of $9.74. The firm's fifty day simple moving average is $4.21 and its two-hundred day simple moving average is $4.97. The stock has a market capitalization of $7.26 billion, a price-to-earnings ratio of -34.92 and a beta of 1.70.

UWM (NYSE:UWMC - Get Free Report) last released its quarterly earnings results on Tuesday, May 6th. The company reported ($0.23) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.06 by ($0.29). UWM had a negative return on equity of 3.86% and a negative net margin of 0.36%. The firm had revenue of $613.37 million for the quarter, compared to the consensus estimate of $558.80 million. Analysts forecast that UWM will post 0.2 EPS for the current year.

Insider Transactions at UWM

In other UWM news, CEO Ishbia Mat sold 400,036 shares of the firm's stock in a transaction on Wednesday, August 6th. The stock was sold at an average price of $4.25, for a total transaction of $1,700,153.00. Following the transaction, the chief executive officer directly owned 3,098,740 shares in the company, valued at approximately $13,169,645. This trade represents a 11.43% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last three months, insiders have sold 8,400,756 shares of company stock valued at $35,271,174. Company insiders own 87.50% of the company's stock.

Hedge Funds Weigh In On UWM

Large investors have recently bought and sold shares of the stock. GAMMA Investing LLC lifted its stake in UWM by 101.8% during the 1st quarter. GAMMA Investing LLC now owns 5,863 shares of the company's stock valued at $32,000 after acquiring an additional 2,958 shares in the last quarter. Signaturefd LLC raised its stake in shares of UWM by 135.4% during the 1st quarter. Signaturefd LLC now owns 8,159 shares of the company's stock worth $45,000 after purchasing an additional 4,693 shares during the period. R Squared Ltd bought a new stake in shares of UWM during the 2nd quarter worth $51,000. Quarry LP bought a new stake in shares of UWM during the 1st quarter worth $53,000. Finally, Focus Partners Wealth bought a new stake in shares of UWM during the 1st quarter worth $55,000. 53.59% of the stock is currently owned by institutional investors.

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.

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