<p><img src="https://static6.businessinsider.com/image/601878206dfbe10018e012c9-2400/GettyImages-1230440907.jpg" border="0" alt="GettyImages 1230440907" style="display: block; margin-left: auto; margin-right: auto;" data-mce-source="hoto Illustration by Omar Marques/SOPA Images/SOPA Images/LightRocket via Getty Images" data-mce-caption="Reddit logo."></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Some retail traders on Reddit's infamous Wall Street Bets page are going all-in on mortgage lender <a href="https://www.businessinsider.com/uwm-ceo-mat-ishbia-no-meeting-thursdays-routine-2021-2">UWM Holdings</a> at a time when the stock is heavily shorted.</p><p>In the past week, one Redditor claimed they went "all in," pouring $200,000 into the stock. Another claimed to have invested $43,000 with hopes of replacing their Honda Civic with a sports car. Another said they invested $140,000. Posts on the subject received thousands of upvotes, aka likes.</p><p>One Redditor, who got 463 upvotes on his post, said the short squeeze in UWM stock is "<a href="https://www.reddit.com/r/wallstreetbets/comments/ncghyg/uwmc_short_squeeze_imminent/">imminent</a>." In a response to Insider, the Redditor, who asked to remain anonymous, said the stock is "undervalued and over shorted," adding that "they have a good CEO, and post-COVID mobility should put houses back on the market."</p><p>The Redditors did not immediately reply to Insider's request for comment or verification.</p><p>On social media, sentiment around the stock is largely positive, according to data from Hype Equity, as 70% of conversations lean bullish. According to the data, the term "short squeeze" is part of 10% of the conversations and buying shares or calls is part of 11%. </p><p>Retail traders from Wall Street Bets, known for creating the <a href="https://markets.businessinsider.com/news/stocks/mormon-church-100-billion-fund-gamestop-stock-gain-tesla-stake-2021-5-1030442617">GameStop share saga</a> that began earlier this year, have begun a trend of flooding into heavily shorted stocks like AMC Entertainment and BlackBerry in an effort to <a href="https://markets.businessinsider.com/news/stocks/melvin-capital-closes-out-public-short-positions-after-gamestop-losses-2021-5-1030447490">squeeze short-sellers</a>. If they're forced to close their positions by buying shares, that pushes the stock higher.</p><p>The Pontiac, Michigan-based mortgage lender, is shorted 13% of its float, according to <a href="https://www.marketbeat.com/stocks/NYSE/UWMC/short-interest/#:~:text=to%20its%20competitors%3F-,13.10%25%20of%20UWM%20Holdings%20Co.,shares%20are%20currently%20sold%20short.">MarketBeat data</a>.</p><p>The company went public via SPAC with an eye-popping $16 billion valuation at the beginning of the year. As the nation's <a href="https://www.businessinsider.com/uwm-mortgage-company-spac-16-billion-going-public-mat-ishbia-2021-1">largest wholesale mortgage lender</a>, UWM provides the cash to finance mortgages to a network of brokers across the country instead of signing home loans directly.</p><p>Since its public debut, shares have largely declined, dropping from highs around $14 to lows around $6 earlier earlier this month. The stock has since recouped some of the losses and is trading around $8.</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/stock-picks-to-buy-amid-rising-inflation-new-momentum-ubs-2021-5" target="_blank" rel="noopener">UBS says to buy these 42 'new momentum' stocks that are poised to outperform in a rising inflation environment</a></em></p><p><a href="https://markets.businessinsider.com/news/stocks/uwm-united-wholesale-mortgage-holdings-reddit-traders-possible-squeeze-target-2021-5-1030455975#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/what-its-like-travel-during-coronavirus-outbreak-planes-airports-virus-2020-3">Here's what it's like to travel during the coronavirus outbreak</a></p>
Click here to read full news..
