Daily Stock Analysis: UWM Holdings Corporation

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UWM Holdings Corp. (UWMC) engages in the origination, sale, and servicing of residential mortgage loans. The company does business through independent mortgage advisors across the United States and the District of Columbia.

It originates primarily from conforming and government loans.

UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.

Three key data points gauge UMW Holdings Corporation or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

UWMC Price

Over the past year, UWM Corp’s share price rose about 43.4% from $3.96 to $5.73 as of Thursday’s market close.

If UWMC’s stock trades in the range of $3.00 to $8.00 this next year, its recent $5.73 share price might rise to $6.20 by next year. Of course, UWMC’s price could drop about the same $0.47 amount or more.

My upside estimate of $0.47, however, is $0.39 over the median of target estimates from 8 analysts who track the stock for brokers.
 

UWMC Dividend

UWM Corp’s quarterly dividends have been paid since January 2021. UWMC’s most recent Q dividend, payable October 11th to shareholders of record September 19th is $0.10.  So, UWMC’s annual dividend payout is projected to be $0.40 and yield 6.99% per Thursday’s closing price.
 

UWMC Returns

Adding the $0.40 anticipated annual dividend to UWMC’s estimated $0.47 price upside reveals a $0.87 potential gross gain per share for the coming year.

At Thursday’s $5.72 closing price, a little over $1000 would buy 175 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.06 per share.

Subtracting that maybe $0.06 brokerage cost from my estimated $0.87 gross gain per share makes a net gain amounting to $0.81 X 175 shares = $141.75 for about a 14.25% net gain.

This may be the time to pounce on UMW Holdings Corporation shares. But beware, UWMC is a wholesale mortgage lender. Furthermore, the estimated $69.90 dividend from $1000 invested comes in at just over 12 times more than the recent single share price. The choice is yours.

Remember the true value of any stock is best realized by your personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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