UWM Holdings Corporation [NYSE: UWMC] price plunged by -1.31 percent to reach at -$0.08. The company report on November 18, 2021 that UWM Holdings Corporation Announces Intent to Accelerate Buyback in Public Market in Lieu of Previously Announced Secondary Offering and Concurrent Stock Repurchase.
UWM Holdings Corporation (NYSE:UWMC) (the “Company”) announced today that SFS Holding Corp, (“SFS”), its principal shareholder, has terminated the previously announced secondary offering of Class A Common Stock and concurrent stock repurchase effective immediately (the “Offering”). The Offering was intended to increase UWMC’s public float by approximately 50%, thereby making it a more liquid, tradable stock for larger indexes and institutional investors, while at the same time utilizing the Company’s buyback authorization to reduce the number of fully diluted shares outstanding. However, the market’s reaction to the Offering resulted in a share price level at which SFS is not willing to sell. With the termination of the Offering, no shares of common stock will be sold by SFS at this time. Instead, the Company intends to accelerate its previously announced buyback program and defer its plans to increase public float to a later date.
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Mat Ishbia, the Company’s Chairman and CEO stated: “As the principal owner of SFS, I was willing to sell a percentage of our ownership in UWM at less than what I think to be fair value because we were advised that increased float in the public market would be beneficial for the UWMC shareholders, including its largest shareholder, SFS. I was also willing to have SFS sell additional shares to the Company at the same time and price to make good on our buyback commitment and reduce the number of shares outstanding without also decreasing the public float. Unfortunately, while there was more than enough demand from potential investors, the overall market conditions were such that the prices offered were not at levels that I will entertain.”.
A sum of 4124946 shares traded at recent session while its average daily volume was at 3.16M shares. UWM Holdings Corporation shares reached a high of $6.09 and dropped to a low of $5.97 until finishing in the latest session at $6.01.
The one-year UWMC stock forecast points to a potential upside of 26.97. The average equity rating for UWMC stock is currently 2.50, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on UWM Holdings Corporation [UWMC]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for UWMC shares is $8.23 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on UWMC stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Wedbush have made an estimate for UWM Holdings Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on December 16, 2021. While these analysts kept the previous recommendation, Piper Sandler raised their target price to Neutral. The new note on the price target was released on December 15, 2021, representing the official price target for UWM Holdings Corporation stock. Previously, the target price had yet another raise to $8.50, while UBS analysts kept a Buy rating on UWMC stock.
The Average True Range (ATR) for UWM Holdings Corporation is set at 0.32, with the Price to Sales ratio for UWMC stock in the period of the last 12 months amounting to 2.04. The Price to Book ratio for the last quarter was 4.66, with the Price to Cash per share for the same quarter was set at 0.60.
UWMC Stock Performance Analysis:
UWM Holdings Corporation [UWMC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.60. With this latest performance, UWMC shares dropped by -12.90% in over the last four-week period, additionally sinking by -28.88% over the last 6 months – not to mention a drop of -54.33% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for UWMC stock in for the last two-week period is set at 37.58, with the RSI for the last a single of trading hit 33.26, and the three-weeks RSI is set at 40.13 for UWM Holdings Corporation [UWMC]. The present Moving Average for the last 50 days of trading for this stock 6.78, while it was recorded at 6.20 for the last single week of trading, and 7.58 for the last 200 days.
Insight into UWM Holdings Corporation Fundamentals:
Return on Total Capital for UWMC is now -3.36, given the latest momentum, and Return on Invested Capital for the company is -2.86. Return on Equity for this stock declined to -2.86, with Return on Assets sitting at -2.73. When it comes to the capital structure of this company, UWM Holdings Corporation [UWMC] has a Total Debt to Total Equity ratio set at 0.25. Additionally, UWMC Total Debt to Total Capital is recorded at 0.25, with Total Debt to Total Assets ending up at 0.23.
UWMC Stock EPS
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for UWMC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for UWM Holdings Corporation go to -14.82%.
UWM Holdings Corporation [UWMC] Insider Position Details
There are presently around $164 million, or 26.50% of UWMC stock, in the hands of institutional investors. The top three institutional holders of UWMC stocks are: VANGUARD GROUP INC with ownership of 7,163,286, which is approximately 5.432% of the company’s market cap and around 10.77% of the total institutional ownership; BLACKROCK INC., holding 3,167,267 shares of the stock with an approximate value of $19.29 million in UWMC stocks shares; and SUSQUEHANNA INTERNATIONAL GROUP, LLP, currently with $12.52 million in UWMC stock with ownership of nearly 3.158% of the company’s market capitalization.
Positions in UWM Holdings Corporation stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 94 institutional holders increased their position in UWM Holdings Corporation [NYSE:UWMC] by around 6,488,521 shares. Additionally, 51 investors decreased positions by around 6,945,351 shares, while 22 investors held positions by with 13,550,931 shares. The mentioned changes placed institutional holdings at 26,984,803 shares, according to the latest SEC report filing. UWMC stock had 30 new institutional investments in for a total of 2,066,654 shares, while 33 institutional investors sold positions of 3,398,014 shares during the same period.