10 Best High Volume Penny Stocks to Buy

2. UWM Holdings Corporation (NYSE:UWMC)

Price: $4.59

Market Capitalization: $7.41 B

Volume: 8,246,766

Average Volume: 10,315,696

Number of Hedge Fund Holders: 45

UWM Holdings Corporation (NYSE:UWMC) is one of the Best High Volume Penny Stocks to Buy. On December 19, Matthew Hurwitz from Jefferies initiated a Hold rating on UWM Holdings Corporation (NYSE:UWMC) with a $5 price target. Earlier on December 18, Bose George from KBW also reiterated a Hold rating but raised the price target from $6.5 to $6.75.

Analysts at Jefferies noted that their $5 price target reflects roughly 8 times the company’s 2027 forward earnings. The firm noted that the company enjoys a strategic edge due to its structural positioning and higher operating leverage heading into the next mortgage cycle. However, the firm still maintained a Hold rating as it believes that a significant portion of the company’s medium-term recovery has already been priced in at its current share price. Regardless of a Hold rating, the firm believes that UWM Holdings Corporation (NYSE:UWMC) offers a balanced risk/reward profile.

That said, earlier on December 17, UWM Holdings Corporation (NYSE:UWMC) announced the strategic acquisition of Two Harbors in an all‑stock merger. The deal is valued at about $1.3 billion in equity value, using a fixed exchange ratio of 2.3328 UWMC shares for each TWO share. Management noted that the deal has nearly doubled the company’s servicing book, boosts its float and scale, and is pitched as EPS‑accretive due to MSR income and cost synergies.

UWM Holdings Corporation (NYSE:UWMC) engages in the origination, sale, and servicing of residential mortgage lending in the US.