Published on 27 Oct 2021 on Insider Monkey via Yahoo Finance

Is UWM Holdings Corporation (UWMC) A Good Stock To Buy?

In this article we will take a look at whether hedge funds think UWM Holdings Corporation (NYSE:UWMC) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably, but their consensus stock picks historically outperformed the market after adjusting for known risk factors.

Is UWMC a good stock to buy? UWM Holdings Corporation (NYSE:UWMC) has seen an increase in hedge fund sentiment recently. UWM Holdings Corporation (NYSE:UWMC) was in 20 hedge funds' portfolios at the end of the second quarter of 2021. The all time high for this statistic is 19. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 19 hedge funds in our database with UWMC positions at the end of the first quarter. Our calculations also showed that UWMC isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).

In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's monthly stock picks returned 185.4% since March 2017 and outperformed the S&P 500 ETFs by more than 79 percentage points (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.