UWM (NYSE:UWMC) Sets New 52-Week Low – Should You Sell?

UWM Holdings Corporation (NYSE:UWMC)’s stock price hit a new 52-week low during trading on Thursday . The company traded as low as $2.37 and last traded at $2.4450, with a volume of 29539981 shares. The stock had previously closed at $2.48.

Analyst Ratings Changes

A number of equities analysts recently commented on UWMC shares. Weiss Ratings raised shares of UWM from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, May 12th. Stephens started coverage on shares of UWM in a research note on Friday, April 24th. They issued an “equal weight” rating and a $4.00 price objective for the company. Argus raised shares of UWM to a “hold” rating in a research note on Tuesday, March 31st. Keefe, Bruyette & Woods reissued a “market perform” rating on shares of UWM in a research note on Friday, June 5th. 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 analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $5.79.

UWM Stock Down 1.4%

The company’s fifty day simple moving average is $3.34 and its 200-day simple moving average is $4.30. The company has a debt-to-equity ratio of 3.13, a current ratio of 1.52 and a quick ratio of 1.52. The firm has a market capitalization of $3.91 billion, a PE ratio of 9.06 and a beta of 1.72.

UWM (NYSE:UWMC) last released its quarterly 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 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. On average, analysts forecast that UWM Holdings Corporation will post 0.38 EPS for the current year.

UWM Dividend Announcement

The company also recently declared 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. This represents a $0.40 annualized dividend and a yield of 16.4%. The ex-dividend date of this dividend is Thursday, June 18th. UWM’s payout ratio is currently 148.15%.

Insider Transactions at UWM

In other UWM news, CEO Ishbia Mat sold 1,003,333 shares of UWM stock in a transaction on Monday, May 4th. The shares were sold at an average price of $3.57, for a total value of $3,581,898.81. Following the transaction, the chief executive officer directly owned 2,995,754 shares of the company’s stock, valued at approximately $10,694,841.78. The trade was a 25.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 25,575,508 shares of company stock valued at $93,943,159 over the last 90 days. 80.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On UWM

Several institutional investors and hedge funds have recently bought and sold shares of the company. Allworth Financial LP grew its holdings in shares of UWM by 5,681.9% during the third 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 during the last quarter. Advisory Services Network LLC purchased a new stake in shares of UWM during the third quarter valued at $38,000. Raymond James Financial Inc. purchased a new stake in shares of UWM during the second quarter valued at $35,000. Farther Finance Advisors LLC grew its holdings in shares of UWM by 1,410.7% during the fourth quarter. Farther Finance Advisors LLC now owns 8,596 shares of the company’s stock valued at $38,000 after buying an additional 8,027 shares during the last quarter. Finally, Moment Partners LLC purchased a new stake in shares of UWM during the third quarter valued at $61,000. 53.59% of the stock is 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.