Ishbia Sells 1.6 Million Shares of UWM Holdings for Approximately $9.4 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- Share Sale Overview: UWM Holdings CEO Mat Ishbia executed the sale of 1,629,785 shares through his trust, SFS Corp., totaling approximately $9.4 million, which reflects a reduction in his holdings to 279,989 shares, indicating a cautious market stance.
- Historical Transaction Comparison: This sale exceeds Ishbia's historical average of 1,200,108 shares sold per transaction; however, the decrease in holdings does not suggest a strategic intent but rather a reduction in available shares.
- Market Capitalization Impact: The transaction value of about $9.36 million represents a minor fraction of UWM Holdings' total market capitalization of $8.9 billion, indicating that while significant for Ishbia personally, it has limited impact on the company's overall financial health.
- Financial Performance Context: UWM reported a total loan origination volume of $41.7 billion and total revenue of $843.3 million in its third-quarter results, and despite a 10% decline in stock price over the year, the market remains cautiously optimistic about its future performance amid falling interest rates.
Analyst Views on UWMC
Wall Street analysts forecast UWMC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UWMC is 7.20 USD with a low forecast of 6.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 4.420
Low
6.00
Averages
7.20
High
10.00
Current: 4.420
Low
6.00
Averages
7.20
High
10.00
About UWMC
UWM Holdings Corporation, through its subsidiaries, is engaged in the origination, sale and servicing of residential mortgage loans throughout the United States. The Company originates primarily conforming and government loans across all 50 states and the District of Columbia. It operates in a single segment and is engaged in the origination, sale and servicing of residential mortgage loans, exclusively in the wholesale channel. It is focused on originating conventional, agency-eligible loans that can be sold to Fannie Mae, Freddie Mac or transferred to Ginnie Mae pools for sale in the secondary market. Its conventional agency-conforming loans meet the general underwriting guidelines established by Fannie Mae and Freddie Mac. Easiest Application System Ever is its primary LOS that allows clients to interact with the Company and to select products, lock rates and run the Automated Underwriting System. Blink+ is its client facing point of sale system white-labeled for its clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
