UWM (NYSE:UWMC) Trading Down 4.2% – Should You Sell?

UWM Holdings Corporation (NYSE:UWMC) shares were down 4.2% during trading on Wednesday . The stock traded as low as $1.49 and last traded at $1.4650. Approximately 2,734,566 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 19,938,178 shares. The stock had previously closed at $1.53.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on UWMC shares. Citizens Jmp raised UWM from a “market perform” rating to an “outperform” rating and set a $3.00 price objective on the stock in a research report on Wednesday, July 29th. Stephens decreased their price target on shares of UWM from $3.00 to $2.00 and set an “equal weight” rating for the company in a research report on Friday, August 7th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a $5.50 price objective on shares of UWM in a research note on Thursday, May 7th. Keefe, Bruyette & Woods cut their price target on shares of UWM from $3.75 to $2.75 and set an “outperform” rating on the stock in a report on Monday. Finally, Zacks Research downgraded UWM from a “hold” rating to a “strong sell” rating in a research report on Wednesday, August 5th. Six research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $4.01.

UWM Price Performance

The company has a quick ratio of 1.52, a current ratio of 1.52 and a debt-to-equity ratio of 3.13. The firm has a market cap of $2.40 billion, a PE ratio of -18.75 and a beta of 1.78. The stock has a 50 day moving average price of $2.07 and a two-hundred day moving average price of $3.30.

UWM (NYSE:UWMC) last announced its quarterly earnings data on Thursday, August 6th. The company reported ($0.23) EPS for the quarter, missing the consensus estimate of $0.07 by ($0.30). The company had revenue of $162.13 million during the quarter, compared to analysts’ expectations of $727.46 million. UWM had a negative net margin of 1.04% and a negative return on equity of 5.61%. As a group, equities analysts expect that UWM Holdings Corporation will post 0.24 earnings per share for the current year.

Institutional Investors Weigh In On UWM

Several institutional investors and hedge funds have recently made changes to their positions in UWMC. Brandes Investment Partners LP purchased a new position in UWM in the 4th quarter worth $45,867,000. Azora Capital LP grew its stake in UWM by 230.8% during the 4th quarter. Azora Capital LP now owns 11,296,053 shares of the company’s stock valued at $49,477,000 after purchasing an additional 7,881,586 shares during the last quarter. Renaissance Technologies LLC acquired a new position in UWM in the 4th quarter worth approximately $21,580,000. First Trust Advisors LP acquired a new stake in shares of UWM in the fourth quarter worth $19,303,000. Finally, Bank of America Corp DE raised its stake in shares of UWM by 127.4% during the 1st quarter. Bank of America Corp DE now owns 6,969,809 shares of the company’s stock valued at $25,231,000 after buying an additional 3,905,286 shares during the last quarter. 53.59% of the stock is currently owned by institutional investors and hedge funds.

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.