UWM (NYSE:UWMC) Trading Down 8% Following Weak Earnings
by Kim Johansen · The Markets DailyUWM Holdings Corporation (NYSE:UWMC – Get Free Report)’s share price was down 8% on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $4.23 and last traded at $4.1960. Approximately 3,802,287 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 17,862,195 shares. The stock had previously closed at $4.56.
The company reported $0.08 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.01). The firm had revenue of $945.25 million during the quarter, compared to the consensus estimate of $759.12 million. UWM had a negative return on equity of 1.33% and a net margin of 0.87%.
UWM Announces Dividend
The business also recently declared a quarterly dividend, which will be paid on Thursday, April 9th. Stockholders of record on Thursday, March 19th will be issued a dividend of $0.10 per share. The ex-dividend date is Thursday, March 19th. This represents a $0.40 annualized dividend and a dividend yield of 9.1%.
More UWM News
Here are the key news stories impacting UWM this week:
- Positive Sentiment: Revenue and volume beat — UWM reported roughly $945M in Q4 revenue and its highest quarterly loan origination volume since 2021, showing demand and market‑share execution that support topline momentum. Q4 Results
- Positive Sentiment: Quarterly dividend announced ($0.10/share; ~9% yield) — that payout can attract income‑oriented holders and provide a baseline of demand. Dividend Announcement
- Neutral Sentiment: Analyst note roundups — recent analyst commentaries summarize mixed views after Q4; some maintain overweight/hold ratings while re‑setting targets. These pieces consolidate opinion but don’t move consensus decisively. Benzinga Analysts Roundup Yahoo: What Analysts Are Saying
- Neutral Sentiment: Options flow spike — unusually high call buying was reported around earnings (large volume vs. average). This signals speculative positioning or hedging but is ambiguous for longer‑term direction. Options Activity
- Negative Sentiment: EPS miss and weak margins — reported EPS (~$0.06–$0.08) came below consensus (~$0.09) and net margin/ROE remain pressured; earnings disappointment was a primary trigger for selling. Earnings Call Transcript
- Negative Sentiment: Conservative, wide Q1 guidance — the $650M–$850M revenue band increases near‑term uncertainty and left some analysts and traders disappointed. Call Transcript
- Negative Sentiment: Insider selling — CEO Mat Ishbia sold a sizable block (~632,874 shares on Feb. 25; SEC filing), which amplified negative sentiment despite possible liquidity reasons. SEC Filing
- Negative Sentiment: Price target trims and market reaction — Barclays and Keefe, Bruyette & Woods lowered targets to $6.00 and moved ratings to market‑perform/overweight; the cuts and the EPS miss helped trigger a sharp intraday selloff (reports of a ~12% plunge and a new 12‑month low). MSN: Stock Plunge
Analyst Ratings Changes
A number of analysts have commented on UWMC shares. UBS Group upped their target price on shares of UWM from $5.50 to $6.00 and gave the company a “neutral” rating in a report on Wednesday, November 12th. Weiss Ratings raised shares of UWM from a “sell (d)” rating to a “hold (c-)” rating in a report on Thursday. Jefferies Financial Group set a $4.40 price target on shares of UWM in a research report on Wednesday. Keefe, Bruyette & Woods reduced their price objective on shares of UWM from $6.75 to $6.00 and set a “market perform” rating for the company in a research note on Friday. Finally, Morgan Stanley set a $6.00 target price on shares of UWM in a research note on Tuesday, December 16th. Two analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, UWM presently has a consensus rating of “Hold” and a consensus price target of $6.24.
Read Our Latest Research Report on UWM
Insider Activity at UWM
In related news, CEO Ishbia Mat sold 632,874 shares of the company’s stock in a transaction on Wednesday, December 31st. The stock was sold at an average price of $4.37, for a total transaction of $2,765,659.38. Following the completion of the sale, the chief executive officer directly owned 346,997 shares in the company, valued at $1,516,376.89. This represents a 64.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Over the last three months, insiders sold 20,348,052 shares of company stock valued at $103,845,430. Insiders own 87.50% of the company’s stock.
Institutional Inflows and Outflows
A number of hedge funds and other institutional investors have recently made changes to their positions in UWMC. Allworth Financial LP increased its position in shares of UWM by 5,681.9% in the 3rd quarter. Allworth Financial LP now owns 4,163 shares of the company’s stock valued at $25,000 after acquiring an additional 4,091 shares during the period. GAMMA Investing LLC raised its stake in shares of UWM by 408.7% in the third quarter. GAMMA Investing LLC now owns 5,407 shares of the company’s stock worth $33,000 after purchasing an additional 4,344 shares during the last quarter. Raymond James Financial Inc. acquired a new stake in shares of UWM during the second quarter worth about $35,000. Farther Finance Advisors LLC increased its holdings in UWM by 1,410.7% in the 4th quarter. Farther Finance Advisors LLC now owns 8,596 shares of the company’s stock worth $38,000 after buying an additional 8,027 shares during the period. Finally, Advisory Services Network LLC acquired a new position in UWM during the third quarter valued at $38,000. Hedge funds and other institutional investors own 53.59% of the company’s stock.
UWM Stock Performance
The firm’s fifty day simple moving average is $5.00 and its 200 day simple moving average is $5.45. The company has a market capitalization of $7.06 billion, a PE ratio of 73.57 and a beta of 1.85. The company has a debt-to-equity ratio of 2.40, a current ratio of 1.45 and a quick ratio of 1.45.
UWM Company Profile
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.