UWM (NYSE:UWMC) Hits New 52-Week Low Following Weak Earnings

UWM Holdings Corporation (NYSE:UWMC) shares reached a new 52-week low during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $1.27 and last traded at $1.1180, with a volume of 3172433 shares changing hands. The stock had previously closed at $1.84.

The company reported ($0.23) EPS for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.30). The company had revenue of $888.00 million for the quarter, compared to the consensus estimate of $727.46 million. UWM had a return on equity of 19.01% and a net margin of 1.92%.

Analyst Ratings Changes

Several research firms have recently commented on UWMC. Barclays decreased their price target on shares of UWM from $5.00 to $4.00 and set an “overweight” rating on the stock in a research note on Tuesday, July 7th. Citigroup raised UWM to an “outperform” rating in a report on Wednesday, July 29th. Weiss Ratings lowered UWM from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, June 15th. BTIG Research restated a “buy” rating and set a $4.00 target price on shares of UWM in a research report on Wednesday, June 24th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $5.50 price target on shares of UWM in a report on Thursday, May 7th. Six analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $4.65.

Insider Activity at UWM

In other news, CEO Ishbia Mat sold 1,003,333 shares of the business’s stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $3.39, for a total value of $3,401,298.87. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 80.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On UWM

Several institutional investors have recently bought and sold shares of UWMC. Vanguard Group Inc. lifted its position in shares of UWM by 9.7% in the fourth quarter. Vanguard Group Inc. now owns 18,959,442 shares of the company’s stock worth $83,042,000 after purchasing an additional 1,676,754 shares in the last quarter. Azora Capital LP boosted its stake in shares of UWM by 230.8% during the 4th quarter. Azora Capital LP now owns 11,296,053 shares of the company’s stock worth $49,477,000 after buying an additional 7,881,586 shares during the last quarter. Brandes Investment Partners LP bought a new position in shares of UWM in the 4th quarter valued at about $45,867,000. Bank of America Corp DE increased its position in shares of UWM by 127.4% in the first quarter. Bank of America Corp DE now owns 6,969,809 shares of the company’s stock valued at $25,231,000 after acquiring an additional 3,905,286 shares during the last quarter. Finally, Balyasny Asset Management L.P. raised its holdings in UWM by 116.6% during the second quarter. Balyasny Asset Management L.P. now owns 5,991,072 shares of the company’s stock worth $24,803,000 after acquiring an additional 3,224,806 shares in the last quarter. Institutional investors own 53.59% of the company’s stock.

UWM Stock Down 41.0%

The firm has a 50-day moving average of $2.20 and a 200 day moving average of $3.43. 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 stock has a market capitalization of $1.74 billion, a price-to-earnings ratio of 3.98 and a beta of 1.78.

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.