UWM (NYSE:UWMC) Hits New 1-Year Low – Time to Sell?

UWM Holdings Corporation (NYSE:UWMC) shares reached a new 52-week low on Thursday . The stock traded as low as $3.06 and last traded at $3.0650, with a volume of 8801901 shares traded. The stock had previously closed at $3.10.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Wall Street Zen upgraded shares of UWM from a “strong sell” rating to a “hold” rating in a research report on Saturday, February 28th. Stephens assumed coverage on shares of UWM in a research report on Friday, April 24th. They issued an “equal weight” rating and a $4.00 price target on the stock. Keefe, Bruyette & Woods decreased their price target on shares of UWM from $5.00 to $4.50 and set a “market perform” rating on the stock in a research report on Friday, May 8th. BTIG Research reiterated a “buy” rating and issued a $10.00 price target on shares of UWM in a research report on Tuesday, March 10th. Finally, Morgan Stanley set a $5.00 price target on shares of UWM in a research report on Thursday, May 7th. Three research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $5.79.

UWM Trading Down 1.2%

The stock’s 50 day moving average price is $3.64 and its 200-day moving average price is $4.63. 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 stock has a market capitalization of $4.79 billion, a PE ratio of 11.09 and a beta of 1.78.

UWM (NYSE:UWMC) last announced its quarterly earnings data on Wednesday, May 6th. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.06 by $0.03. The firm had revenue of $901.43 million during the quarter, compared to analysts’ expectations of $709.85 million. UWM had a net margin of 1.92% and a return on equity of 19.01%. On average, sell-side analysts expect that UWM Holdings Corporation will post 0.38 earnings per share for the current fiscal year.

UWM Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 18th will be paid a $0.10 dividend. The ex-dividend date of this dividend is Thursday, June 18th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 13.4%. UWM’s dividend payout ratio is 148.15%.

Insider Activity

In other news, CEO Ishbia Mat sold 1,003,333 shares of the stock in a transaction on Friday, May 8th. The shares were sold at an average price of $3.39, for a total value of $3,401,298.87. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 30,638,500 shares of company stock valued at $115,619,093 over the last three months. Corporate insiders own 80.30% of the company’s stock.

Hedge Funds Weigh In On UWM

Institutional investors have recently bought and sold shares of the stock. Integrated Investment Consultants LLC purchased a new position in UWM during the third quarter valued at $32,630,000. Tudor Investment Corp ET AL purchased a new position in UWM during the third quarter valued at $12,237,000. Alight Capital Management LP purchased a new position in UWM during the third quarter valued at $3,958,000. Vanguard Group Inc. grew its stake in UWM by 6.2% during the third quarter. Vanguard Group Inc. now owns 17,282,688 shares of the company’s stock valued at $105,252,000 after acquiring an additional 1,010,907 shares in the last quarter. Finally, Luxor Capital Group LP purchased a new position in UWM during the third quarter valued at $7,473,000. 53.59% of the stock is owned by hedge funds and other institutional investors.

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.