UWM Holdings Stock Falls On Q1 Report, Share Buyback Announcement

UWM Holdings Corporation UWMC, which went public via a special purpose acquisition company earlier this year, reported first-quarter results Monday.

The company had loan volume of $49.1 billion in the first quarter and net income of $860 million.

Earnings of 33 cents per share missed a 47-cent Street estimate.

UWM Holdings reported a 1.54% 60-day plus delinquency rate, which it said is well below the industry average of 4.3%.

“While others in our industry guide towards lower volume in 2Q21, UWMC is quite the opposite,” CEO Mat Ishbia said in a statement. UWM could be one of the only mortgage companies in America that grows in a rising rate environment, he said. 

UWM is guiding for second-quarter loan volume to come in a range of $51 billion to $55 billion.

UWM Holdings announced a $300-million share buyback to take place over the next 24 months. A quarterly dividend of 10 cents was also announced during the first quarter.

UWM Holdings will hold a conference call at 10 a.m. ET Tuesday.

UWMC Price Action: Shares of UWM Holdings were down 2.53% at $6.55 in Monday's after-hours session. 

Related Link: What’s Driving The Rally In Rocket Competitor UWM Holdings?

Posted In: Mat Ishbiamortgage stocksSPACSPACsEarningsNewsGuidanceBuybacksMoversTrading IdeasReal Estate

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