UWM (NYSE:UWMC) Shares Gap Up – Still a Buy?

UWM Holdings Corporation (NYSE:UWMC)’s stock price gapped up prior to trading on Friday . The stock had previously closed at $4.71, but opened at $4.96. UWM shares last traded at $5.1080, with a volume of 8,799,637 shares changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on UWMC shares. Barclays upped their target price on UWM from $6.00 to $7.00 and gave the stock an “overweight” rating in a research report on Monday, October 6th. BTIG Research restated a “buy” rating and issued a $10.00 price target on shares of UWM in a report on Monday, September 22nd. Jefferies Financial Group assumed coverage on shares of UWM in a research report on Friday, December 19th. They set a “hold” rating and a $5.00 target price on the stock. The Goldman Sachs Group set a $5.00 price target on shares of UWM in a research note on Tuesday. Finally, Wall Street Zen lowered shares of UWM from a “hold” rating to a “strong sell” rating in a report on Saturday, November 15th. Two analysts have rated the stock with a Buy rating, seven have given 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 an average target price of $6.53.

UWM Price Performance

The business’s 50 day moving average is $5.16 and its 200-day moving average is $5.22. The company has a quick ratio of 1.45, a current ratio of 1.45 and a debt-to-equity ratio of 2.40.

UWM (NYSE:UWMC) last announced its quarterly earnings data on Thursday, November 6th. The company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.06). The company had revenue of $151.14 million for the quarter, compared to analyst estimates of $651.51 million. UWM had a negative return on equity of 6.81% and a net margin of 0.61%. Equities research analysts predict that UWM Holdings Corporation will post 0.2 earnings per share for the current year.

UWM Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, January 8th. Shareholders of record on Thursday, December 18th were paid a dividend of $0.10 per share. The ex-dividend date was Thursday, December 18th. This represents a $0.40 annualized dividend and a yield of 7.4%.

Insider Buying and Selling

In related news, CEO Ishbia Mat sold 632,874 shares of the company’s stock in a transaction that occurred on Friday, December 26th. The stock was sold at an average price of $4.57, for a total transaction of $2,892,234.18. Following the sale, 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 position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Over the last 90 days, insiders sold 20,091,283 shares of company stock worth $106,248,453. Company insiders own 87.50% of the company’s stock.

Hedge Funds Weigh In On UWM

Several institutional investors have recently modified their holdings of the company. Allworth Financial LP increased its holdings 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 worth $25,000 after acquiring an additional 4,091 shares during the period. GAMMA Investing LLC grew its position in UWM by 408.7% in the 3rd quarter. GAMMA Investing LLC now owns 5,407 shares of the company’s stock worth $33,000 after purchasing an additional 4,344 shares during the last quarter. Advisory Services Network LLC acquired a new stake in shares of UWM in the third quarter valued at approximately $38,000. Raymond James Financial Inc. bought a new stake in shares of UWM during the second quarter valued at approximately $35,000. Finally, Moment Partners LLC acquired a new position in shares of UWM during the third quarter worth approximately $61,000. 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.