UWM (NYSE:UWMC) Shares Gap Up Following Better-Than-Expected Earnings

UWM Holdings Corporation (NYSE:UWMC) shares gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $1.59, but opened at $1.80. UWM shares last traded at $1.8250, with a volume of 3,958,046 shares trading hands.

The company reported $0.10 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.06. UWM had a negative net margin of 1.04% and a negative return on equity of 6.20%. The firm had revenue of $811.09 million for the quarter, compared to analysts’ expectations of $690.29 million.

Wall Street Analyst Weigh In

Several research firms have weighed in on UWMC. Barclays decreased their target price on shares of UWM from $4.00 to $2.00 and set an “overweight” rating on the stock in a report on Friday, August 7th. Zacks Research upgraded shares of UWM from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 20th. Morgan Stanley set a $1.50 price target on shares of UWM in a research report on Monday, October 12th. Weiss Ratings lowered shares of UWM from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday, August 11th. Finally, Stephens decreased their price objective on UWM from $3.00 to $2.00 and set an “equal weight” rating on the stock in a report on Friday, August 7th. Four investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $2.76.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Meeder Advisory Services Inc. acquired a new stake in shares of UWM during the second quarter valued at about $25,000. Fifth Third Bancorp purchased a new stake in shares of UWM in the 1st quarter valued at approximately $41,000. Bull Harbor Capital LLC purchased a new stake in shares of UWM in the 1st quarter valued at approximately $45,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of UWM in the 2nd quarter worth approximately $30,000. Finally, Secure Asset Management LLC acquired a new position in shares of UWM in the 2nd quarter worth approximately $30,000. Institutional investors and hedge funds own 53.59% of the company’s stock.

UWM Stock Performance

The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 6.05. The stock has a market capitalization of $2.92 billion, a price-to-earnings ratio of -22.76 and a beta of 1.82. The firm’s fifty day moving average price is $1.30 and its 200 day moving average price is $2.77.

About UWM

UWM Holdings Corporation, through its principal subsidiary United Wholesale Mortgage (UWM), operates as a wholesale mortgage lender in the United States. The company provides residential mortgage loans through a network of independent mortgage brokers, who work directly with borrowers and submit applications to UWM for underwriting and funding.

UWM offers a range of home loan products, including conventional, government-backed, jumbo and other residential mortgage programs. Its platform also provides brokers with technology, loan processing, underwriting and closing services designed to support the origination of mortgages for home purchases and refinancings.

United Wholesale Mortgage traces its history to 1986 and is headquartered in Pontiac, Michigan.