UWM (NYSE:UWMC) Hits New 1-Year Low – What’s Next?

UWM Holdings Corporation (NYSE:UWMC) shares hit a new 52-week low during mid-day trading on Friday . The company traded as low as $2.58 and last traded at $2.6150, with a volume of 12337229 shares traded. The stock had previously closed at $2.62.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. Stephens assumed coverage on UWM in a research report on Friday, April 24th. They issued an “equal weight” rating and a $4.00 target price on the stock. Argus upgraded UWM to a “hold” rating in a research note on Tuesday, March 31st. BTIG Research reiterated a “buy” rating and set a $10.00 target price on shares of UWM in a research note on Tuesday, March 10th. Jefferies Financial Group set a $4.40 target price on UWM in a research note on Wednesday, February 25th. Finally, Zacks Research upgraded UWM from a “strong sell” rating to a “hold” rating in a research report on Monday, March 30th. Three equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, UWM currently has an average rating of “Hold” and an average price target of $5.79.

UWM Trading Down 1.0%

The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 3.13. The firm has a fifty day simple moving average of $3.42 and a two-hundred day simple moving average of $4.37. The firm has a market cap of $4.15 billion, a PE ratio of 9.61 and a beta of 1.72.

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

UWM Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 18th will be issued a $0.10 dividend. The ex-dividend date of this dividend is Thursday, June 18th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 15.4%. UWM’s dividend payout ratio (DPR) is presently 148.15%.

Insider Activity at UWM

In other news, CEO Ishbia Mat sold 1,003,333 shares of the firm’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $3.39, for a total value of $3,401,298.87. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 26,841,256 shares of company stock valued at $98,809,960. 80.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On UWM

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Dynamic Technology Lab Private Ltd bought a new stake in UWM during the first quarter valued at about $92,000. Focus Partners Wealth bought a new stake in UWM during the first quarter valued at about $55,000. Cetera Investment Advisers raised its holdings in UWM by 20.5% during the second quarter. Cetera Investment Advisers now owns 112,961 shares of the company’s stock valued at $468,000 after acquiring an additional 19,239 shares during the period. Legal & General Group Plc raised its holdings in UWM by 65.9% during the second quarter. Legal & General Group Plc now owns 180,164 shares of the company’s stock valued at $746,000 after acquiring an additional 71,555 shares during the period. Finally, Rhumbline Advisers raised its holdings in UWM by 18.5% during the second quarter. Rhumbline Advisers now owns 115,501 shares of the company’s stock valued at $478,000 after acquiring an additional 18,034 shares during the period. 53.59% of the stock is currently owned by hedge funds and other institutional investors.

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.