UWM (NYSE:UWMC) Shares Down 5.1% – Time to Sell?

Shares of UWM Holdings Corporation (NYSE:UWMC) fell 5.1% on Friday . The stock traded as low as $4.88 and last traded at $4.8850. 7,636,149 shares traded hands during trading, a decline of 61% from the average session volume of 19,589,303 shares. The stock had previously closed at $5.15.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. Wall Street Zen downgraded shares of UWM from a “hold” rating to a “strong sell” rating in a report on Saturday, November 15th. The Goldman Sachs Group set a $5.00 target price on shares of UWM in a research note on Tuesday, January 6th. Jefferies Financial Group began coverage on shares of UWM in a report on Friday, December 19th. They set a “hold” rating and a $5.00 target price for the company. Morgan Stanley set a $6.00 price target on UWM in a report on Tuesday, December 16th. Finally, Keefe, Bruyette & Woods raised their price objective on UWM from $6.50 to $6.75 and gave the stock a “market perform” rating in a research note on Thursday, December 18th. Two equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $6.53.

UWM Stock Performance

The firm’s 50 day simple moving average is $5.22 and its 200-day simple moving average is $5.42. The company has a debt-to-equity ratio of 2.40, a quick ratio of 1.45 and a current ratio of 1.45.

UWM (NYSE:UWMC) last issued its earnings results on Thursday, November 6th. The company reported $0.01 earnings per share for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.06). The business had revenue of $151.14 million during the quarter, compared to analyst estimates of $651.51 million. UWM had a net margin of 0.61% and a negative return on equity of 6.81%. On average, sell-side analysts forecast that UWM Holdings Corporation will post 0.2 earnings per share for the current fiscal year.

Insider Activity at UWM

In other news, CEO Ishbia Mat sold 632,874 shares of the company’s stock in a transaction on Friday, December 26th. The shares were sold at an average price of $4.57, for a total value of $2,892,234.18. Following the transaction, the chief executive officer directly owned 2,245,619 shares of the company’s stock, valued at approximately $10,262,478.83. This represents a 21.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. In the last 90 days, insiders have sold 19,896,625 shares of company stock worth $104,743,834. Insiders own 87.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Allworth Financial LP grew its stake in shares of UWM by 5,681.9% in the 3rd quarter. Allworth Financial LP now owns 4,163 shares of the company’s stock valued at $25,000 after buying an additional 4,091 shares in the last quarter. GAMMA Investing LLC raised its holdings in shares of UWM by 408.7% during the 3rd quarter. GAMMA Investing LLC now owns 5,407 shares of the company’s stock valued at $33,000 after purchasing an additional 4,344 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in shares of UWM in the 2nd quarter valued at $35,000. Farther Finance Advisors LLC boosted its holdings in UWM by 1,410.7% in the fourth quarter. Farther Finance Advisors LLC now owns 8,596 shares of the company’s stock worth $38,000 after purchasing an additional 8,027 shares in the last quarter. Finally, Advisory Services Network LLC acquired a new position in UWM during the third quarter worth $38,000. 53.59% of the stock is owned by institutional investors and hedge funds.

UWM Company Profile

United Wholesale Mortgage (NYSE: UWMC) is a leading mortgage lender in the United States specializing in the wholesale channel. The company partners with independent mortgage brokers, community banks and credit unions to offer a full suite of residential mortgage products. Through its network of third-party originators, United Wholesale Mortgage underwrites, funds and closes loans, allowing its partners to focus on customer acquisition and service.

The company’s product offerings include conventional fixed- and adjustable-rate mortgages, Federal Housing Administration (FHA) loans, Veterans Affairs (VA) loans, U.S.