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How to buy UWM stock
Learn how to easily invest in UWM stock.
Pontiac, Michigan-based United Wholesale Mortgage, a wholesale mortgage lender, completed its merger with special purpose acquisition company Gores Holdings IV. Shares of United Wholesale Mortgage began trading on the New York Stock Exchange under the ticker symbol "UWMC" on Friday, January 22, 2021. The stock opened at $11.43 per share.
The merger values the newly combined company, which will now be called UMW Holdings Corporation, at $16 billion.
How to buy shares in UWM
- Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
- Open your brokerage account. Complete an application with your details.
- Confirm your payment details. Fund your account.
- Research the stock. Find the stock by name or ticker symbol – UWMC – and research it before deciding if it's a good investment for you.
- Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
- Check in on your investment. Optimize your portfolio by tracking your stock.
UWM stock price (NYSE: UWMC)Use our graph to track the performance of UWMC stocks over time.
UWM shares at a glance
|Latest market close||$5.50|
|52-week range||$5.33 - $11.82|
|50-day moving average||$6.51|
|200-day moving average||$7.44|
|Wall St. target price||$7.84|
|Dividend yield||$0.1 (6.75%)|
|Earnings per share (TTM)||$14.48|
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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
United Wholesale Mortgage Company Profile
United Wholesale Mortgages (UWMC) is a mortgage lending service.
The company provides wholesale lending and underwrites closing documentation for residential mortgage loans aimed at independent mortgage brokers, small banks and local credit unions.
Operating out of Detroit, the business states its technology allows for faster, easier and cheaper mortgage processes.
Investment thesis for UWMC
Having somewhere to live is a basic human need, but most people cannot secure a home without a home loan.
One of the leaders in the wholesale mortgage sector is UWMC. It is one of the largest wholesale mortgage providers in America, and it has a continued projection of growth.
UWMC has an extensive track record of creating value and is in a growing sector.
Prior to the global financial crisis between 2007 and 2009, wholesale lending made up about half of all mortgages, and in recent times, it has been making a comeback.
United Wholesale Mortgages has the strategic advantage of being the largest wholesale lender six years in a row.
It has invested heavily in its technology and client services. As such, it can now underwrite and provide closing documentation for residential mortgages cheaply and more efficiently.
While affordability issues in the housing sector remain a key risk facing the industry, UWMC is in a solid financial position to navigate this risk.
Key risks of United Wholesale Mortgage
In the current market environment, the company has two main risk factors it needs to navigate:
- Rising interest rates
- Weakening property markets around the US
Spurred on by reopening and large government stimulus packages, the United States’ economy has bounced back in a relatively short period of time.
However, the recovery is not without its issues, one being the potential for inflation. Inflationary pressures could force the Federal Reserve to raise interest rates.
While rising rates could help a wholesaler with its margins on loans, it could also put pressure on the housing market as a whole. And this could reduce the demand for United Wholesale’s services.
Similarly, house prices in the US have already jumped by as much as 27% depending on the location. This is putting pressure on the housing market.
If the housing market softens due to a lack of affordability, it could put pressure on United Wholesale Mortgage’s bottom line.
The key risks vary depending on your view of the property market.
If you believe the market could fall then a mortgage provider could be a risk.
However, if you believe the housing market will continue to grow or if you think the Fed will continue its “lower for longer” approach, these key risks could be avoided.
Is United Wholesale Mortgage stock a buy?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Should you invest $1,000 in United Wholesale Mortgage right now?
This all depends on your views on the housing market and the Federal Reserve.
If you believe the property market will continue its strong growth and rates will remain low for longer, then a stock like UWMC could remain attractive for investors.
However, if you believe the housing market could soften, it could have a negative impact on United Wholesale Mortgage.
But it’s important to note that UWMC’s stock is down 57% year-to-date.
This means bullish investors can get in relatively cheap compared with the start of the year. An investor today could purchase 181 shares today compared with 77 at the start of the year.
$1,000 today into the stock relatively cheaply.
UWM price performance over time
|1 week (2022-01-14)||-3.85%|
|1 month (2021-12-21)||-12.70%|
|3 months (2021-10-21)||-23.29%|
|6 months (2021-07-21)||-29.12%|
|1 year (2021-01-21)||-52.34%|
|2 years (2020-01-17)||N/A|
|3 years (2019-01-17)||N/A|
|5 years (2017-01-17)||N/A|
Is UWM stock undervalued or overvalued?
Valuing UWM stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of UWM's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
UWM's P/E ratio
UWM's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 0x. In other words, UWM shares trade at around 0x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
However, UWM's P/E ratio is best considered in relation to those of others within the mortgage finance industry or those of similar companies.
UWM's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $3.4 billion.
The EBITDA is a measure of a UWM's overall financial performance and is widely used to measure a its profitability.
To put UWM's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||$4.6 billion|
|Operating margin TTM||63.63%|
|Gross profit TTM||$5 billion|
|Return on assets TTM||15.1%|
|Return on equity TTM||10.77%|
|Market capitalisation||$8.9 billion|
TTM: trailing 12 months
UWM share dividends
Dividend payout ratio: 73.72% of net profits
Recently UWM has paid out, on average, around 73.72% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 6.75% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), UWM shareholders could enjoy a 6.75% return on their shares, in the form of dividend payments. In UWM's case, that would currently equate to about $0.1 per share.
UWM's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
UWM's most recent dividend payout was on 5 January 2022. The latest dividend was paid out to all shareholders who bought their shares by 8 December 2021 (the "ex-dividend date").
UWM's dividend payout ratio is perhaps best considered in relation to those of similar companies.
UWM share price volatility
Over the last 12 months, UWM's shares have ranged in value from as little as $5.3327 up to $11.8244. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while UWM's is 0.1979. This would suggest that UWM's shares are less volatile than average (for this exchange).
To put UWM's beta into context you can compare it against those of similar companies.
UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company originates mortgage loans through wholesale channel. It originates primarily conforming and government loans. The company was founded in 1986 and is headquartered in Pontiac, Michigan. .
UWM in the news
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Frequently asked questionsWhat percentage of UWM is owned by insiders or institutions?
Currently 0.204% of UWM shares are held by insiders and 27.902% by institutions. How many people work for UWM?
Latest data suggests 8,400 work at UWM. When does the fiscal year end for UWM?
UWM's fiscal year ends in December. Where is UWM based?
UWM's address is: 585 South Boulevard East, Pontiac, MI, United States, 48341 What is UWM's ISIN number?
UWM's international securities identification number is: US91823B1098
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