5 Best Penny Stocks to Invest In According to Billionaires

​3. UWM Holdings Corporation (NYSE:UWMC)

Number of Billionaire Investors: 16

Total Value of Holdings: $151.9 billion

Number of Hedge Fund Holders: 46

UWM Holdings Corporation (NYSE:UWMC) is one of the Best Penny Stocks to Invest In According to Billionaires. The stock was held by 16 billionaire investors as of Q1 2026, with total holdings around $151.9 billion.

​Recently, on June 25, UWM Holdings Corporation (NYSE:UWMC) was upgraded to Outperform from Market Perform at Keefe Bruyette. Despite the upgrade, the firm lowered the price target from $4.5 to $3.75. The firm noted that they expect the mortgage rates to stay elevated around the 6.25% to 6.5% range through 2028. As a result, the firm lowered the price targets across title insurers and mortgage originators broadly.

​Despite the cautious outlook, the firm believes that UWM Holdings is attractively priced at current valuations; hence, it upgraded the stock to Outperform. Moreover, the firm also expects the company to cut its dividend. While dividend cuts are often seen negatively, in this case, the analyst views it as constructive. He elaborated that reducing the payout would let the company retain more capital, build equity, and strengthen its balance sheet.  The firm sees the likely dividend cut as a near-term positive trigger that could support the stock, even as the broader mortgage industry outlook stays challenging.

UWM Holdings Corporation (NYSE:UWMC) is a company specializing in origination, sale, and servicing residential mortgage lending. Founded in 1986, the company originates primarily from conforming and government loans.