Why UWM Holdings Stock Dived by 20% Last Month

United Wholesale Mortgage (NYSE: UWMC) had an August to forget. An unsuccessful acquisition attempt impacted the quarterly results the mortgage originator reported that month, and the impact wasn't positive. Relatedly, it announced a large-scale fundraising effort that raised concerns about stock dilution.

Largely due to the strong investor sell-off these events engendered, UWM's stock fell by more than 20% over the course of August.

UWM's second-quarter results were unveiled on Aug. 5. For the period, it earned $888 million in revenue, up 17% year over year. The company's specialty is mortgage originations; these were essentially flat at $39.7 billion.

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