Barclays Cuts Target Price on United Wholesale Morgtage (UWMC) to $6
UWM Holdings Corporation (NYSE:UWMC) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.
On February 26, Barclays analyst Terry Ma reduced his target price on UWM Holdings by 14.3% to $6 (from $7) but retained the firm’s Overweight call on the stock. Lower 1st-quarter guidance from management, which offset an otherwise solid 4th quarter, was the driver of this target price cut. He also added that the lack of a Q&A portion during the earnings call may have contributed to the stock selloff following the earnings release.
UWM held its Q4 2025 earnings call a day before, on February 25. The release showed diluted earnings per share in Q4 quadrupling to $0.08 (vs. $0.02), which is more or less in line with the street consensus of $.0.09. Earnings growth was driven by both volume growth and gain margin expansion.
Despite the solid quarter, management gave a rather conservative estimate for Q1 2026 revenue. They expect revenue to be between $650 million and $850 million. The lower half of this range would fall below the street consensus of $742 million.
Matthew Ishbia, Chief Executive Officer of United Wholesale Mortgage, also refused to include a Q&A portion during the briefing, claiming that “our industry’s superior business model that the short Q&A does not necessarily do it justice, really make it to explain the complexity of business. So I am not going to go through the question process today.” Barclays suspects that this lack of transparency may have scared off some investors, causing the stock to fall 8.8% immediately after the briefing.
UWM Holdings Corporation (NYSE:UWMC) is a wholesale residential mortgage lender. The company is based in Pontiac, Michigan, and was founded in 1986.
While we acknowledge the potential of UWMC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Disclosure: None.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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