UWM (NYSE:UWMC) Sets New 1-Year Low – Here’s Why

UWM Holdings Corporation (NYSE:UWMC) hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $2.83 and last traded at $2.9250, with a volume of 19770058 shares trading hands. The stock had previously closed at $2.92.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on UWMC shares. Keefe, Bruyette & Woods reduced their target price on shares of UWM from $5.00 to $4.50 and set a “market perform” rating on the stock in a research note on Friday, May 8th. Morgan Stanley set a $5.00 target price on shares of UWM in a research note on Thursday, May 7th. Compass Point started coverage on shares of UWM in a research note on Tuesday, March 10th. They issued a “buy” rating and a $8.50 target price on the stock. Barclays reduced their target price on shares of UWM from $6.00 to $5.00 and set an “overweight” rating on the stock in a research note on Monday, April 6th. Finally, Wall Street Zen raised shares of UWM from a “strong sell” rating to a “hold” rating in a research note on Saturday, February 28th. Three investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, UWM presently has a consensus rating of “Hold” and an average price target of $5.79.

UWM Stock Up 0.2%

The firm’s 50 day moving average is $3.59 and its two-hundred day moving average is $4.58. The firm has a market cap of $4.68 billion, a P/E ratio of 10.83 and a beta of 1.78. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 3.13.

UWM (NYSE:UWMC) last released its quarterly earnings data on Wednesday, May 6th. The company reported $0.09 earnings per share for the quarter, topping the consensus estimate of $0.06 by $0.03. UWM had a net margin of 1.92% and a return on equity of 19.01%. The business had revenue of $901.43 million for the quarter, compared to analyst estimates of $709.85 million. As a group, research analysts anticipate that UWM Holdings Corporation will post 0.38 EPS for the current fiscal year.

UWM Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 18th will be paid a dividend of $0.10 per share. The ex-dividend date of this dividend is Thursday, June 18th. This represents a $0.40 annualized dividend and a yield of 13.7%. UWM’s dividend payout ratio (DPR) is presently 148.15%.

Insiders Place Their Bets

In related news, CEO Ishbia Mat sold 1,003,333 shares of UWM stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $3.57, for a total transaction of $3,581,898.81. Following the transaction, the chief executive officer owned 2,995,754 shares of the company’s stock, valued at $10,694,841.78. This trade represents a 25.09% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 30,005,626 shares of company stock worth $112,530,668. 80.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Integrated Investment Consultants LLC bought a new position in UWM during the 3rd quarter worth approximately $32,630,000. Tudor Investment Corp ET AL acquired a new position in shares of UWM in the third quarter valued at approximately $12,237,000. Alight Capital Management LP acquired a new position in shares of UWM in the third quarter valued at approximately $3,958,000. Vanguard Group Inc. boosted its holdings in shares of UWM by 6.2% in the third quarter. Vanguard Group Inc. now owns 17,282,688 shares of the company’s stock valued at $105,252,000 after buying an additional 1,010,907 shares during the period. Finally, Luxor Capital Group LP acquired a new position in shares of UWM in the third quarter valued at approximately $7,473,000. Institutional investors own 53.59% of the company’s stock.

About UWM

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.