Why UWM Holdings Stock Sank by 10% in February

By Eric Volkman – Mar 8, 2026 at 7:46PM ESTKey PointsThe Federal Reserve cut its key rates twice during the period.It probably won't repeat that move anytime soon, however.Investors in mortgage lender UWM Holdings (UWMC 4.59%) had a February nearly as unpleasant as the weather that month. The company's shares lost a bit over 10% of their value in the short month, despite the company reporting record loan volumes in its fourth quarter. A major home financier UWM is the indirect parent company of Universal Wholesale Mortgage, which, as its name implies, provides mortgages to third-party sellers (mainly brokers). UWM controls the largest wholesaler, so its size and scope are considerable. Image source: Getty Images. The company posted its fourth-quarter and full-year results toward the end of the month, divulging that it originated $49.6 billion in home loans during the former period. This was up significantly from the $38.7 billion it earned in the same quarter of 2024. That filtered down to revenue of just over $945 million, for a robust year-over-year gain of 31%. As for profitability, net income not under generally accepted accounting practices (GAAP) zoomed nearly four times higher to more than $130 million, or $0.08 per share. Analysts were expecting a higher bottom-line bounce; however, their collective estimate for non-GAAP (adjusted) net income was $0.09 per share. On a brighter note, UWM beat on revenue, as the average prognosticator expectation for that line item was barely over $754 million. UWM benefited greatly from not one, but two cuts to the Federal Reserve's key interest rate during the quarter. This significantly ramped up refinancing volume, which almost doubled from both the previous and the year-ago quarters to $30.7 billion. Surges in key fundamentals didn't inspire UWM to boost its quarterly dividend. The company declared a $0.10 payout, which matches every one of its 20 previous disbursements. The new one is to be dispensed on April 9 to investors of record as of March 19. At least it's a high-yield dividend, paying out almost 10% at the most recent closing share price. ExpandNYSE: UWMCUWM HoldingsToday's Change(-4.59%) $-0.18Current Price$3.85Key Data PointsMarket Cap$1.1BDay's Range$3.83 - $4.1352wk Range$3.79 - $7.14Volume1.4MAvg Vol18MGross Margin87.45%Dividend Yield10.36% The rate cut blues UWM also proffered revenue guidance for its first quarter of 2026, which is weeks away from its end. It anticipates it will take in $650 million to $850 million. Although the consensus analyst estimate of slightly over $769 million lies within that range, it's above the range's midpoint of $750 million. The company successfully rode that refinancing wave, and I think investors are mostly disappointed that the currently low chances of rate cuts in 2026 will affect its business. I think it's got a brighter future than that, particularly given the looming acquisition of mortgage real estate investment trust (mREIT) Two Harbors. And that dividend yield looks rather attractive. I'm not sure I'd consider the stock a sell at this point. Read NextMar 1, 2026 •By Adé HennisUWM Holdings CEO Sells Nearly 2M Shares For $9MMar 1, 2026 •By Adé HennisUWM Holdings CEO Sells 1.27M Shares for $6.5 MillionFeb 22, 2026 •By Adé HennisPresident and CEO Sells UWMC 1.9M Shares for $9.0 MillionJan 31, 2026 •By Adé HennisUWM Holdings CEO Sells Millions of Shares in JanuaryJan 20, 2026 •By Thomas NielIs 2026 the Year to Buy UWM Holdings?Dec 19, 2025 •By Eric VolkmanWhy UWM Holdings Stock Was Getting Mashed This WeekAbout the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanStocks MentionedUWM HoldingsNYSE: UWMC$3.85(-4.59%)-$0.19Two Harbors Investment Corp.NYSE: TWO$9.26(-3.54%)-$0.34*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.