UWM (NYSE:UWMC) Posts Earnings Results

UWM (NYSE:UWMC) announced its quarterly earnings results on Wednesday. The company reported $0.09 earnings per share for the quarter, topping analysts’ consensus estimates of $0.06 by $0.03, FiscalAI reports. UWM had a return on equity of 18.89% and a net margin of 1.92%.The company had revenue of $901.43 million during the quarter, compared to analysts’ expectations of $709.85 million.

Here are the key takeaways from UWM’s conference call:

• UWM expects to complete the transition to in?house servicing this year, has already moved many loans from Cenlar and reports less than 100,000 loans remaining, citing partnerships (Black Knight, Bilt) and improved retention/lower servicing costs.
• The AI assistant Mia has been widely adopted—management cites roughly 80k–100k closings influenced over the past year, ~40% call pickup and strong refinance conversion rates that enhance broker retention and cross?sell.
• Management’s medium?term goal is to originate over $1.3 trillion in mortgages across the next five years while keeping expenses roughly flat, expecting margin leverage and an additional ~20–25% of revenue from ancillary products/AI initiatives.
• UWM continues to pursue Two Harbors for its MSR book and sees strategic value in the shareholders, but disputes with the target’s management/board and competing bids leave the deal outcome and timing uncertain.
• UWM rolled out VantageScore quickly after FHFA guidance, saying the change has already helped more borrowers qualify or receive better pricing and delivered immediate loan wins for brokers.

UWM Stock Performance

UWM stock traded up $0.01 during trading hours on Friday, hitting $3.39. The stock had a trading volume of 7,450,718 shares, compared to its average volume of 17,547,748. The company has a 50-day moving average of $3.77 and a two-hundred day moving average of $4.73. The company has a quick ratio of 1.52, a current ratio of 1.52 and a debt-to-equity ratio of 2.64. The company has a market cap of $5.42 billion, a PE ratio of 12.50 and a beta of 1.78. UWM has a fifty-two week low of $3.27 and a fifty-two week high of $7.14.

UWM Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 18th will be issued a $0.10 dividend. The ex-dividend date of this dividend is Thursday, June 18th. This represents a $0.40 annualized dividend and a yield of 11.8%. UWM’s dividend payout ratio is 666.67%.

Analyst Ratings Changes

Several equities analysts recently weighed in on UWMC shares. Zacks Research raised UWM from a “strong sell” rating to a “hold” rating in a research report on Monday, March 30th. BTIG Research reissued a “buy” rating and set a $10.00 price objective on shares of UWM in a research report on Tuesday, March 10th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $5.50 price objective on shares of UWM in a research report on Thursday. Stephens started coverage on UWM in a research report on Friday, April 24th. They set an “equal weight” rating and a $4.00 price objective for the company. Finally, Weiss Ratings cut UWM from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, March 27th. Three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $5.79.

Insider Buying and Selling

In other UWM news, CEO Ishbia Mat sold 1,003,333 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $3.57, for a total value of $3,581,898.81. Following the completion of the transaction, the chief executive officer owned 2,995,754 shares of the company’s stock, valued at $10,694,841.78. This represents a 25.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 31,533,789 shares of company stock valued at $121,210,934. Corporate insiders own 80.30% of the company’s stock.

Institutional Investors Weigh In On UWM

Large investors have recently modified their holdings of the stock. Allworth Financial LP grew its stake 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 purchasing an additional 4,091 shares during the period. Raymond James Financial Inc. bought a new stake in shares of UWM in the 2nd quarter valued at approximately $35,000. Advisory Services Network LLC bought a new stake in shares of UWM in the 3rd quarter valued at approximately $38,000. Xponance LLC bought a new stake in shares of UWM in the 4th quarter valued at approximately $46,000. Finally, Caitong International Asset Management Co. Ltd grew its stake in shares of UWM by 1,338.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 10,503 shares of the company’s stock valued at $46,000 after purchasing an additional 9,773 shares during the period. 53.59% of the stock is currently owned by institutional investors.

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.