UWM (NYSE:UWMC) Sets New 1-Year Low After Insider Selling

Key Points

• New 52-week low: UWM fell to $3.33 after sizable insider selling — CEO Mat Ishbia sold roughly 3.01 million shares in early May under a Rule 10b5-1 plan, cutting his stake by about one-third.
• Q1 beat and dividend: The company beat expectations with $0.09 EPS and $901.4M revenue, and declared a $0.10 quarterly dividend (annualized ~$0.40), implying roughly a 12% yield.
• Mixed market signals: analysts hold a consensus "Hold" rating with a $5.99 target, but unusual put buying and the large insider sales suggest elevated short-term bearish bets and potential volatility.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report)'s share price reached a new 52-week low during trading on Thursday after an insider sold shares in the company. The stock traded as low as $3.33 and last traded at $3.2950, with a volume of 2230451 shares trading hands. The stock had previously closed at $3.49.

Specifically, CEO Ishbia Mat sold 1,003,333 shares of the firm's stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $3.66, for a total transaction of $3,672,198.78. Following the transaction, the chief executive officer owned 1,992,421 shares in the company, valued at approximately $7,292,260.86. This trade represents a 33.49% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ishbia Mat sold 1,003,333 shares of the business's stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $3.57, for a total transaction of $3,581,898.81. Following the completion of the transaction, the chief executive officer owned 2,995,754 shares in the company, valued at $10,694,841.78. The trade was a 25.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In related news, CEO Ishbia Mat sold 1,001,024 shares of the business's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $3.62, for a total value of $3,623,706.88. Following the sale, the chief executive officer directly owned 5,002,420 shares in the company, valued at approximately $18,108,760.40. The trade was a 16.67% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

A number of analysts have weighed in on the company. Wall Street Zen upgraded UWM from a "strong sell" rating to a "hold" rating in a research note on Saturday, February 28th. Jefferies Financial Group set a $4.40 target price on UWM in a research report on Wednesday, February 25th. Keefe, Bruyette & Woods cut their target price on UWM from $6.00 to $5.00 and set a "market perform" rating on the stock in a research report on Friday, April 10th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating on shares of UWM in a report on Thursday. Finally, Zacks Research raised UWM from a "strong sell" rating to a "hold" rating in a report on Monday, March 30th. Three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $5.99.

Key UWM News

Here are the key news stories impacting UWM this week:

• Positive Sentiment: Q1 results: UWM reported $0.09 EPS vs. $0.06 consensus and revenue of $901.4M vs. ~ $709.9M expected — a material top- and bottom-line beat with margin improvement versus year-ago levels, the primary bullish catalyst. Article Title
• Positive Sentiment: Dividend: The board declared a $0.10 quarterly dividend (annualized $0.40), implying ~11.5% yield — a potential magnet for income-oriented buyers and support for a share-price floor ahead of the June 18 ex-dividend date.
• Neutral Sentiment: Earnings call / transcript available — management commentary will be important to assess whether the revenue beat and margin gains are sustainable (origination trends, expense trajectory, guidance). Earnings Call Transcript
• Neutral Sentiment: Press and analyst notes reiterate the revenue surprise and profit improvement; coverage may reinforce short-term momentum but so far hasn’t moved consensus price targets materially. Article Title
• Negative Sentiment: Insider selling: CEO Mat Ishbia sold 1,003,333 shares at an average $3.66 (filed under a Rule 10b5-1 plan), reducing his stake by ~33% — investors may view the size/frequency of sales negatively despite the trading-plan disclosure. SEC Form 4
• Negative Sentiment: Options activity: Unusual put buying (~34,068 puts; ~262% above average) signals elevated short-term bearish bets and potential downside pressure or volatility around the stock.

UWM Stock Down 4.7%

The stock has a market capitalization of $5.32 billion, a price-to-earnings ratio of 54.75 and a beta of 1.78. The firm has a 50-day moving average of $3.80 and a 200 day moving average of $4.74. The company has a debt-to-equity ratio of 2.64, a current ratio of 1.52 and a quick ratio of 1.52.

UWM (NYSE:UWMC - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The company reported $0.09 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.06 by $0.03. UWM had a negative return on equity of 1.35% and a net margin of 0.87%.The company had revenue of $901.43 million during the quarter, compared to analysts' expectations of $709.85 million. As a group, sell-side analysts forecast that UWM Holdings Corporation will post 0.41 earnings per share for the current fiscal year.

UWM Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 18th will be paid a dividend of $0.10 per share. The ex-dividend date is Thursday, June 18th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 12.0%. UWM's dividend payout ratio (DPR) is 666.67%.

Hedge Funds Weigh In On UWM

Large investors have recently made changes to their positions in the company. Allworth Financial LP increased 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 worth $25,000 after acquiring an additional 4,091 shares during the period. Advisory Services Network LLC bought a new position in shares of UWM in the 3rd quarter valued at $38,000. Raymond James Financial Inc. bought a new position in shares of UWM in the 2nd quarter valued at $35,000. Farther Finance Advisors LLC increased its stake in shares of UWM by 1,410.7% in the 4th quarter. Farther Finance Advisors LLC now owns 8,596 shares of the company's stock valued at $38,000 after purchasing an additional 8,027 shares during the last quarter. Finally, Moment Partners LLC bought a new position in shares of UWM in the 3rd quarter valued at $61,000. Institutional investors own 53.59% of the company's stock.

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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