Why Shares of UWM Holdings Are Surging Today
Shares of the mortgage originator UWM Holdings (NYSE: UWMC) had jumped more than 22% as of 10:57 a.m. EST after the company said it had decided not to go through with a planned secondary offering. UWM also said that it would "accelerate" its previously announced share repurchase program.
Earlier this week, UWM announced a secondary offering in which its controlling shareholder would sell 50 million common shares, which sent shares tumbling.
The goal with the offering had been to enlarge UWM's float and increase liquidity, thereby making it easier for indexes and institutional investors to pick up the stock. UWM also announced a stock buyback program at the same time as the offering.
Source Fool.com
