National Vision: Barclays upgrades to Overweight with a new PT of $30.

National Vision: Barclays upgrades to Overweight with a new PT of $30.

Barclays has upgraded its rating for UWM Holdings Corp. (NYSE:UWMC) to Overweight from Equalweight, maintaining a price target of $6.00. The stock is currently trading at $3.99, offering a notable dividend yield of 10.03% [1]. The upgrade reflects Barclays' view that UWM Holdings shares are currently trading at 8.4 times the firm’s fiscal year 2026 earnings per share estimate, representing approximately a 32% discount to the historical average [1].

Barclays identifies UWM Holdings as a long-term winner in the mortgage space, with continued broker channel growth driving market share gains for the company. The firm expects expense growth to moderate in the second half of this year as UWM laps some investment initiatives, addressing investor concerns about the long-term trajectory of expenses [1].

In other recent news, UWM Holdings Corporation reported its first-quarter earnings, which fell short of analyst expectations. The company posted a net loss of $247 million, or -$0.12 per share, compared to the analyst consensus estimate of $0.05 per share. However, UWM’s revenue exceeded expectations, reaching $613.37 million against the anticipated $545.77 million, marking a 4.8% increase from the previous year. Loan origination volume for the quarter was $32.4 billion, a 17% increase year-over-year, though it declined 16% from the previous quarter. Purchase originations remained relatively flat at $21.7 billion compared to $22.1 billion in the first quarter of 2024. The company’s total gain margin decreased to 94 basis points from 108 basis points a year ago. UWM’s total equity dropped to $1.6 billion as of March 31, 2025, down from $2.1 billion at the end of 2024. The board declared a cash dividend of $0.10 per share, payable on July 10, 2025, to stockholders of record as of June 18, 2025. Looking forward, UWM expects its second-quarter production to range between $38 billion and $45 billion, with a gain margin between 90 and 115 basis points [1].

References:
[1] https://www.investing.com/news/analyst-ratings/uwm-holdings-stock-rating-upgraded-to-overweight-by-barclays-on-broker-channel-growth-93CH-4125819