WMIH Corp. (NASDAQ:WMIH) traded on unusually high volume yesterday as the stock gained 54.52% to close at $1.23. On the day, WMIH Corp. saw 18.97 million shares trade hands on 36,847 trades. Considering that the stock averages only a daily volume of 510,271 shares a day over the last month, this represents a pretty significant bump. WMIH is seeing this drive in price after their announcement to merge with Nationstar Mortgage Holdings. The deal is worth $3.8 billion.

Since, the epic meltdown of WAMU during the financial crisis – the company was seized by the Office of Thrift Supervision in 2008, and the bank-holding company filed for bankruptcy – WMIH has had limited operations and not written any new business since 2008. But, it has been looking for acquisitions and the Dallas-based mortgage originator looked like a good bet as the nation’s housing market continues to grow. Nationstar shareholders could chose to receive $18.00 in cash or 12.7793 of WMIH common stock for each share owned. Nationstar shareholders will own around 36 percent of the combined entity with WMIH shareholders owning the remaining 64 percent.

 WMIH Corp. (NASDAQ:WMIH), as stated above, was formerly known as Washington Mutual, Inc., operations consist primarily of WM Mortgage Reinsurance Company, Inc. (“WMMRC”), a wholly owned subsidiary of the Company that is domiciled in Hawaii. The Company’s primary business is a legacy reinsurance business that is currently operated in runoff mode by WMMRC

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“Nationstar aligns perfectly with our acquisition strategy and has a strong track record of providing mortgage servicing and loan and real estate offerings in various market conditions,” said Bill Gallagher, Chief Executive Officer of WMIH. “Nationstar’s talented and experienced management team, best-in-class servicing platform, and continued investments in customer education and self-service position it for growth across channels and services. We look forward to working with Nationstar’s talented team to build on the Company’s strong foundation to drive growth, expand the platform and create shareholder value. The combined company is expected to benefit from WMIH’s platform and financial attributes, which are expected to enhance free cash flow available to support business growth and be accretive to shareholders’ equity.”

Jay Bray, Chief Executive Officer and Chairman of Nationstar, said, “We expect this merger to create value for our shareholders in both the near and long-term, including immediate accretion on a cash EPS basis and a cash premium for those of our stockholders who elect to receive the cash merger consideration. I am passionately committed to continuing and accelerating our growth and investment as a leader in our industry, leveraging our best-in-class integrated servicing and originations platform. The Nationstar Board and management team have taken considerable steps to make homeownership simpler and more rewarding for our three million customers and we look forward to identifying additional opportunities to enhance value for the combined company’s shareholders.”

The stock has traded between $1.60 and $0.60 over the last 52-weeks, its 50-day SMA is now $0.86, and its 200-day SMA $1.04.

WMIH Corp. (NASDAQ:WMIH) has a market cap of 254.26M with a float of 183.33M. The short portion of the float is an estimated 2.94%. WMIH is seeing an astounding amount of volume after this deal with Nationstar and many analysts across Wall Street are signaling this as a strong buy. WMIH has very little debt on its books and might be a strong ROESign-up for continuing coverage on shares of $WMIH stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $WMIH, either long or short, and we have not been compensated for this article.