Inside Billionaire Mat Ishbia's Latest $9 Million UWM Stock Sale

UWMC +1.39%

Key Points

• Ishbia sold 1.6 million shares (owned indirectly), but the move is small relative to his 1.3 billion indirectly owned derivative securities.

• Though UWMC's stock has lagged the broader market, the company just posted loan origination volume of $41.7 billion in the third quarter—its largest quarterly originations in four years.

• The sales appear consistent with his recent cadence, as opposed to a break in long-term confidence.

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Mat Ishbia, President and CEO of UWM Holdings Corporation (NYSE:UWMC), reported the open-market sale of 1.6 million shares of the major wholesale mortgage lender between Wednesday and Friday, according to a SEC Form 4 filing.

Transaction Summary

Metric

Value

Shares sold

1,629,785 (indirect)

Transaction value

$9.4 million

Post-transaction shares

3,053,843 (indirect); 279,989 (direct)

Post-transaction value (indirect ownership)

$17.9 million

The transaction value is based on the weighted average sale price of $5.74; the post-transaction value is based on the latest market close.

Key Questions

How significant was the reduction in direct holdings as a result of this transaction?The sale represented a disposal of around 35% of Ishbia's indirect ownership, reducing his direct holdings from approximately 4.7 million to 3.1 millin shares. Nevertheless, Ishbia still indirectly owns 1.3 billion derivative securities, which make up the bulk of his holdings.

How does the transaction compare to the insider's historical selling activity?Ishbia’s late-November sales are consistent with the steady selling pattern he has maintained for months; earlier this fall he regularly sold blocks of roughly 1.1–1.2 million shares, and this month’s 1.6 million-share disposal remains well within that cadence rather than representing an acceleration or a structurally larger reduction in exposure

What is the market context for the transaction’s pricing and timing?Shares were priced at around $5.74 per share for this transaction, while the market closed at $5.85 on Friday. Over the past year, UWM Holdings Corporation shares declined by 11%, well underperforming the S&P 500's 14% gain in the same period.

Company Overview

Metric

Value

Revenue (TTM)

$1.4 billion

Net income (TTM)

$16.9 million

Dividend yield

6.8%

1-year price change

(11%)

Company Snapshot

UWM Holdings Corporation is a leading wholesale mortgage lender in the United States, leveraging scale and technology to support independent mortgage brokers nationwide. The company’s strategy centers on high-volume, efficient loan processing and a focus on conforming and government-backed products. It generates revenue primarily from originating, selling, and servicing mortgage loans. UWM’s competitive advantage lies in its exclusive wholesale channel, enabling broad market reach and operational efficiency. In addition to serving independent mortgage brokers, the firm also serves their clients, targeting homebuyers and homeowners seeking mortgage financing solutions.

Foolish Take

Ishbia’s latest sale matters less for its size than for what it signals about insider behavior during a pivotal stretch for UWM. The company is posting its strongest operating momentum in years—third-quarter originations hit $41.7 billion, revenue climbed to $843 million, and adjusted EBITDA rose to $211 million, marking one of UWM’s most profitable periods since 2021. Against that backdrop, the CEO sold 1.6 million shares between Wednesday and Friday at prices ranging from $5.60 to $5.85, trimming his indirect stake to about 3.1 million shares. Ishbia owns these shares indirectly through SFS Corp, of which he is the CEO, sole director, and shareholder. The trades were sold pursuant to a trading plan adopted in March.But the scale needs context: Ishbia still indirectly controls 1.3 billion derivative securities, which continue to represent the overwhelming majority of his economic exposure. The recent sales—about 11.2 million shares this month alone—therefore likely reflect portfolio management rather than a meaningful shift in long-term alignment, especially given that the transactions were made under a trading plan.For investors, sustained operating progress is the more material signal. UWM’s gain margin expanded to 130 bps, refinance volume accelerated, and liquidity totaled $3 billion at quarter-end. If the wholesale channel continues gaining share and UWM executes on servicing in-house next year, fundamentals—not insider activity—should remain the primary driver of long-run value.

Glossary

Insider trading: Buying or selling a company’s stock by individuals with access to non-public, material information about the company.Open-market sale: The sale of securities on a public exchange, available to all investors, rather than through private transactions.SEC Form 4: A required filing disclosing changes in ownership of a company’s securities by insiders, such as executives or directors.Direct ownership: Shares held in an individual’s own name, as opposed to indirect holdings through trusts or entities.Outstanding shares: The total number of a company’s shares currently held by all shareholders, including insiders and the public.Weighted average sale price: The average price per share received in a transaction, weighted by the number of shares sold at each price.Voting stake: The proportion of voting rights an investor holds in a company, typically based on share ownership.Economic stake: The financial interest an investor has in a company, reflecting potential gains or losses from ownership.Wholesale lending channel: A business model where loans are originated through third-party brokers rather than directly to consumers.Conforming loan: A mortgage that meets the criteria set by government-sponsored entities like Fannie Mae or Freddie Mac.Government-backed loan: A mortgage insured or guaranteed by a government agency, such as FHA or VA loans.TTM: The 12-month period ending with the most recent quarterly report.

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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Inside Billionaire Mat Ishbia's Latest $9 Million UWM Stock Sale was originally published by The Motley Fool