UWM Target of Unusually High Options Trading (NYSE:UWMC)

UWM Holdings Corporation (NYSE:UWMC) was the target of unusually large options trading activity on Monday. Traders purchased 15,889 call options on the company. This is an increase of 92% compared to the average daily volume of 8,296 call options.

Insider Activity at UWM

In related news, CEO Ishbia Mat sold 1,000,574 shares of the business’s stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $3.70, for a total transaction of $3,702,123.80. Following the transaction, the chief executive officer directly owned 12,335,597 shares of the company’s stock, valued at approximately $45,641,708.90. The trade was a 7.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders have sold 20,839,274 shares of company stock worth $99,204,360 in the last ninety days. Company insiders own 94.11% of the company’s stock.

Hedge Funds Weigh In On UWM

Large investors have recently made changes to their positions in the business. Corient Private Wealth LLC boosted its stake in UWM by 258.0% during the 4th quarter. Corient Private Wealth LLC now owns 103,471 shares of the company’s stock valued at $453,000 after purchasing an additional 74,565 shares during the period. Caitong International Asset Management Co. Ltd grew its stake in shares of UWM by 1,570.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 12,191 shares of the company’s stock worth $53,000 after acquiring an additional 11,461 shares during the last quarter. Kera Capital Partners Inc. acquired a new stake in shares of UWM in the fourth quarter worth $47,000. Virtu Financial LLC bought a new position in UWM during the fourth quarter worth $1,799,000. Finally, Invesco Ltd. increased its position in UWM by 504.1% during the fourth quarter. Invesco Ltd. now owns 1,498,979 shares of the company’s stock worth $6,566,000 after acquiring an additional 1,250,845 shares during the period. Institutional investors and hedge funds own 53.59% of the company’s stock.

Wall Street Analysts Forecast Growth

UWMC has been the subject of a number of research reports. Morgan Stanley set a $6.00 target price on shares of UWM in a research note on Tuesday, December 16th. Jefferies Financial Group set a $4.40 price target on shares of UWM in a research note on Wednesday, February 25th. Zacks Research lowered UWM from a “hold” rating to a “strong sell” rating in a report on Friday, February 27th. Weiss Ratings raised UWM from a “sell (d)” rating to a “hold (c-)” rating in a research report on Thursday, February 26th. Finally, The Goldman Sachs Group set a $5.00 target price on UWM in a research note on Tuesday, January 6th. Three equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $6.49.

Key Stories Impacting UWM

Here are the key news stories impacting UWM this week:

• Positive Sentiment: BTIG reiterated a Buy rating with a $10 price target after UWM raised its revenue outlook ahead of the merger vote — this reinforces upside expectations if the deal clears. BTIG Reiterates Buy Rating on UWM Holdings (UWMC)
• Positive Sentiment: Unusually large call-option buying occurred (about 15,889 calls, up ~92% vs. typical volume), indicating short-term bullish/speculative positioning that can support near-term demand for the shares.
• Neutral Sentiment: Valuation coverage notes UWM shares sit below some narrative fair-value estimates, suggesting analysts see upside but also pointing to execution and deal risk that must be resolved. A Look At UWM Holdings (UWMC) Valuation
• Negative Sentiment: Two Harbors adjourned its shareholder meeting after missing a quorum, postponing the merger vote and increasing near-term deal uncertainty — a direct negative for UWM’s strategic outlook and stock sentiment. Two Harbors postpones vote on UWM merger after quorum miss
• Negative Sentiment: CEO Mat Ishbia sold large blocks of stock in two filings (632,874 shares on March 13 at ~$3.69 and 1,000,574 shares on March 16 at ~$3.70), reducing his ownership meaningfully — insider selling at scale tends to weigh on investor sentiment. SEC filing: SEC Form 4

UWM Trading Down 0.7%

NYSE:UWMC opened at $3.64 on Tuesday. The company’s 50 day moving average is $4.87 and its 200-day moving average is $5.33. The company has a quick ratio of 1.52, a current ratio of 1.52 and a debt-to-equity ratio of 2.64. UWM has a 12 month low of $3.62 and a 12 month high of $7.14. The firm has a market cap of $5.82 billion, a price-to-earnings ratio of 60.58 and a beta of 1.90.

UWM (NYSE:UWMC) last posted its quarterly earnings data on Wednesday, February 25th. The company reported $0.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.01). The firm had revenue of $945.25 million for the quarter, compared to the consensus estimate of $759.12 million. UWM had a negative return on equity of 1.35% and a net margin of 0.87%. Equities analysts anticipate that UWM will post 0.2 EPS for the current year.

UWM Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Thursday, March 19th will be given a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 11.0%. The ex-dividend date of this dividend is Thursday, March 19th. UWM’s dividend payout ratio (DPR) is currently 666.67%.

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.