"UWM's stock, which closed at $5.12 prior to the deal announcement, traded near $3.60 on Wednesday morning well below levels typically required for broad institutional ownership."
"A registration statement under a 10b5-1 plan allowing insiders to trade company stocks states that SFS Corp. can resell up to 150 million shares of Class A common stock, with about 45.7 million shares remaining unsold at the end of February."
"Despite expectations that these sales occur and their low volume compared to the ownership structure, the fact that the owners are selling the assets was not sending a good message to investors."
UWM's stock price has sharply declined amid a volatile mortgage industry, influenced by geopolitical tensions, M&A activity, and rising mortgage rates. The stock fell from $5.12 to around $3.60, below levels needed for institutional ownership. SFS Corp. controls UWM and has been reducing its ownership. A 10b5-1 plan allows for the resale of shares to increase public float, with expectations that an acquisition could further expand the number of publicly traded shares. Insider selling has negatively impacted investor sentiment despite low sales volume.
Read at www.housingwire.com
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