UWM (NYSE:UWMC) Trading Down 8% – What’s Next?

UWM Holdings Corporation (NYSE:UWMC)’s share price dropped 8% on Wednesday . The stock traded as low as $4.23 and last traded at $4.1960. Approximately 3,802,287 shares traded 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.

UWM News Summary

Here are the key news stories impacting UWM this week:

• Positive Sentiment: UWM reported Q4 & full‑year 2025 results with revenue of $945.3M (well above consensus) and announced a dividend—fundamentals that can support the mortgage originations story and investor confidence. UWM Fourth Quarter & Full Year 2025 Results
• Positive Sentiment: Industry context: easing interest rates helped UWM’s end‑of‑2025 performance, which can boost loan demand and margins if the rate environment holds. Lower interest rates help UWM at end of 2025
• Neutral Sentiment: The company’s prepared remarks and earnings-call transcript are available for detail on guidance, origination trends and capital allocation — useful for assessing whether management’s outlook supports the rally or a pullback. Q4 2025 Earnings Call Prepared Remarks Transcript
• Neutral Sentiment: There was an unusual spike in call‑option activity (≈54,116 calls, ~687% above average). Large call buying can signal speculative bullish bets or hedging by sophisticated traders but is ambiguous for near‑term stock direction.
• Neutral Sentiment: Market write‑ups and previews are circulating (earnings previews and “reconsider” pieces) that may amplify short‑term flows but do not change the underlying quarter results. Is It Time To Reconsider UWM Holdings (UWMC)
• Negative Sentiment: Significant insider selling by CEO Ishbia Mat (multi‑day, multi‑million dollar dispositions) is weighing on sentiment; large, repeated sales by the CEO often prompt investor concern about near‑term outlook or liquidity needs. Insider Selling: CEO Sells $2.86M in Stock
• Negative Sentiment: Shares traded with heavy volume and moved down on the session, suggesting the market favored the selling/uncertainty reaction despite the revenue beat; heightened volume increases downside risk near term. MarketBeat: UWM Earnings and Stock Performance

Analysts Set New Price Targets

Several equities analysts have weighed in on the stock. The Goldman Sachs Group set a $5.00 target price on shares of UWM in a report on Tuesday, January 6th. Morgan Stanley set a $6.00 target price on shares of UWM in a report on Tuesday, December 16th. Jefferies Financial Group initiated coverage on shares of UWM in a research note on Friday, December 19th. They set a “hold” rating and a $5.00 price target on the stock. Keefe, Bruyette & Woods boosted their price objective on shares of UWM from $6.50 to $6.75 and gave the company a “market perform” rating in a research report on Thursday, December 18th. Finally, Wall Street Zen lowered shares of UWM from a “hold” rating to a “strong sell” rating in a research report on Saturday, November 15th. Two investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $6.53.

UWM Stock Performance

The business’s 50-day simple moving average is $5.02 and its two-hundred day simple moving average is $5.47. The company has a debt-to-equity ratio of 2.40, a quick ratio of 1.45 and a current ratio of 1.45.

UWM (NYSE:UWMC) last released its quarterly earnings data on Wednesday, February 25th. The company reported $0.08 EPS for the quarter, meeting the consensus estimate of $0.08. UWM had a negative return on equity of 6.81% and a net margin of 0.61%.The company had revenue of $945.25 million for the quarter, compared to analyst estimates of $759.12 million. As a group, equities research analysts anticipate that UWM Holdings Corporation will post 0.2 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Ishbia Mat sold 632,874 shares of the business’s stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $4.52, for a total transaction of $2,860,590.48. Following the transaction, the chief executive officer directly owned 4,596,407 shares of the company’s stock, valued at approximately $20,775,759.64. The trade was a 12.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders have sold a total of 20,152,251 shares of company stock worth $103,851,825 in the last 90 days. Company insiders own 94.11% of the company’s stock.

Institutional Investors Weigh In On UWM

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP boosted its position in UWM by 4.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 55,509 shares of the company’s stock valued at $243,000 after buying an additional 2,329 shares during the last quarter. Public Employees Retirement System of Ohio increased its holdings in UWM by 4.9% during the 4th quarter. Public Employees Retirement System of Ohio now owns 51,423 shares of the company’s stock worth $225,000 after purchasing an additional 2,407 shares during the last quarter. Allworth Financial LP raised its position in shares of UWM by 62.5% in the 4th quarter. Allworth Financial LP now owns 6,765 shares of the company’s stock valued at $30,000 after purchasing an additional 2,602 shares in the last quarter. Choreo LLC grew its position in shares of UWM by 16.1% during the fourth quarter. Choreo LLC now owns 19,017 shares of the company’s stock worth $84,000 after buying an additional 2,637 shares in the last quarter. Finally, State of Wyoming increased its stake in shares of UWM by 24.9% in the third quarter. State of Wyoming now owns 14,552 shares of the company’s stock worth $89,000 after buying an additional 2,902 shares during the last quarter. Hedge funds and other institutional investors own 53.59% of the company’s stock.

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.