UWM Holdings Corp (NYSE:UWMC) is trading significantly higher Friday after the company announced it will accelerate its buyback plan “in lieu of previously announced secondary offering and concurrent stock repurchase.”
UWM Holdings terminated its previously announced secondary offering. The company said the market’s reaction to the offering resulted in a share price level at which SFS Holding Corp, its principal shareholder, was not willing to sell.
UWM Holdings intends to accelerate its previously announced buyback program and defer its plans to increase public float to a later date.
“We will be aggressive with utilizing our remaining buyback authorization at these prices and if the market returns to a reasonable level, SFS will be willing to do its part by providing availability to increase the public float, but the terms have to make sense, and doing a deal today at these levels did not make sense to me,” said Mat Ishbia, chairman and CEO of UWM Holdings.
See Also: 20 Stocks Moving in Friday’s Pre-Market Session
UWMC Price Action: UWM Holdings has traded as high as $12.45 and as low as $5.41 over a 52-week period.
The stock was up 25.20% at $6.91 at time of publication.