Barclays analyst Terry Ma has revised the price target for UWM Holdings (UWMC, Financial) from $7 to $6, maintaining an Equal Weight rating on the stock. This adjustment follows the company's first-quarter report, highlighting ongoing challenges. The analyst points out that although current investments in technology and promotional pricing are affecting short-term performance, they are expected to enhance UWM's long-term prospects. Despite these strategies, the company is facing a difficult volume environment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for UWM Holdings Corp (UWMC, Financial) is $7.00 with a high estimate of $10.00 and a low estimate of $4.50. The average target implies an upside of 71.99% from the current price of $4.07. More detailed estimate data can be found on the UWM Holdings Corp (UWMC) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, UWM Holdings Corp's (UWMC, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for UWM Holdings Corp (UWMC, Financial) in one year is $18.88, suggesting a upside of 363.88% from the current price of $4.07. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the UWM Holdings Corp (UWMC) Summary page.
UWMC Key Business Developments
Release Date: May 06, 2025
- Revenue: $613 million for Q1 2025.
- Net Loss: $247 million, inclusive of a $388 million reduction in the fair value of the MSR portfolio.
- Adjusted EBITDA: $58 million.
- Production Volume: $32.4 billion, a 7% growth year over year.
- Refinance Volume: $10.6 billion, almost double from Q1 2024.
- Gain Margin: 94 basis points.
- Submission to Clear to Close: 12.7 days, improved from 13.9 days in Q1 2024.
- Net Promoter Score (NPS): 87.3.
- Cash: $485 million as of the end of Q2.
- Total Accessible Liquidity: $2.4 billion.
- MSR Portfolio Fair Value: $3.3 billion.
- Dividend: $0.10 per share for the quarter, $0.40 annualized.
- Q2 2025 Production Guidance: Expected between $38 billion and $45 billion.
- Q2 2025 Gain Margin Guidance: Expected between 90 basis points and 115 basis points.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- UWM Holdings Corp (UWMC, Financial) reported a 7% year-over-year growth in production, closing $32.4 billion in the first quarter, outperforming the industry.
- The company achieved a Net Promoter Score of 87.3, indicating high customer satisfaction and industry-leading service levels.
- UWM Holdings Corp (UWMC) plans to bring servicing in-house, leveraging AI technology to potentially save between $40 million and $100 million annually.
- The mortgage broker channel share has increased significantly, reaching almost 28%, the highest since 2008, showcasing the company's strategic growth.
- The company maintained strong liquidity with $485 million in cash and $2.4 billion in total accessible liquidity, positioning it well for future opportunities.
Negative Points
- UWM Holdings Corp (UWMC) posted a net loss of $247 million for the quarter, impacted by a $388 million reduction in the fair value of its MSR portfolio.
- The gain margin was reported at 94 basis points, which was lower than expected, although the company is optimistic about future trends.
- The company faces increased costs compared to the first quarter of 2024, attributed to ongoing investments in growth and technology.
- There is uncertainty regarding the impact of potential GSE reform and privatization, which could affect the company's operations.
- Despite the positive outlook, the macroeconomic environment remains volatile, posing challenges to achieving projected growth targets.
