UWMC stock:Is mortgage lender the next WSB winner? – Idaho Reporter

NYSE

UWMC stock:Is mortgage lender the next WSB winner?

United Wholesale Mortgage (NYSE:UWMC) stock is on a roll, popping 19.66% on Tuesday and another 23% on Wednesday during pre-market session on positive news. Lets see what is behind the latest move.

For the past year, mortgage stocks have had a pretty bad time. With the post-pandemic stocks in full swing, the companies that are leading the mortgage market have watched business boom, their stocks soar and investors cheer.

UWMC is “the #1 wholesale mortgage lender” prepping to enter the Russell 1000 and Russell 3000 indexes with a big splash.

 

This week, United Mortgage Lender added another catalyst. The one that is the most important catalyst, great numbers.

Company reported a record set of number, $54.7 billion in loan volume, a 71% increase from the 4Q19 $31.9 billion loan volume, bringing UWM’s full year 2020 production to $182.5 billion, which is 69% higher than UWM’s prior record production for 2019 of $107.8 billion.

WSB discussion today: $RKT takes the lead from r/wallstreetbets

And all this pushed UWMC stock in top 3 most discussed shares on r/wallstreetbets subreddit, as we can see in the post above.

With its almost 10 million members, WallStreetBets has the power to move the prices of certain stocks violently to the upside, at least temporarily.

So, what are WSB “apes” (as they call themselves) posting about UWMC stock?

“If you missed the memo on RKT, check out UWMC! I’m hitting it tomorrow and so are many others”-said Reddit user under Colt45W.

In one post explaining UWMC stock situation, the Redditor highlights a major reason why UWMC mooning might be imminent, “Each index announces its changes in advance, but index funds cannot acquire the new company until the effective date of the change. In the interim, other market participants may buy in expectation of a big price jump on the effective date.” further explaining that “UWMC stock price will rise on news of joining indexes because funds that track that index must now buy the stock”

Another reason why UWMC might go higher? I want to recommend this article on UWMC as it was written in January, so probably the first really good DD on UWMC. Back then the writer talked about several catalyst, main one being inclusion in indexes:”United Wholesale deal was a almost surgically designed to take advantage of technicals like index inclusion and forced buying”-noted YAV writer, adding that “a lot of mutual funds tied to benchmarks are going to be begging the indexes to add United so that they can buy it.”

So has the UWMC stock rebooted after going IPO via SPAC deal ? For now, the best answer may be that it’s in no imminent danger of crashing

Share your thoughts

Theme by Anders Norén