UWM (NYSE:UWMC) Sets New 1-Year Low – What’s Next?

UWM Holdings Corporation (NYSE:UWMC)’s stock price hit a new 52-week low during trading on Tuesday . The company traded as low as $2.04 and last traded at $2.0550, with a volume of 28314693 shares changing hands. The stock had previously closed at $2.22.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on UWMC shares. Stephens assumed coverage on shares of UWM in a research report on Friday, April 24th. They set an “equal weight” rating and a $4.00 price objective for the company. Argus upgraded UWM to a “hold” rating in a research note on Tuesday, March 31st. Jefferies Financial Group set a $4.40 price target on UWM in a report on Wednesday, February 25th. Barclays dropped their price objective on UWM from $6.00 to $5.00 and set an “overweight” rating on the stock in a report on Monday, April 6th. Finally, Morgan Stanley set a $5.00 target price on UWM in a research report on Thursday, May 7th. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $5.19.

UWM Trading Down 7.4%

The stock has a market capitalization of $3.29 billion, a price-to-earnings ratio of 7.61 and a beta of 1.72. The company has a debt-to-equity ratio of 3.13, a quick ratio of 1.52 and a current ratio of 1.52. The business has a 50-day moving average of $3.11 and a 200-day moving average of $4.11.

UWM (NYSE:UWMC) last released its quarterly earnings results 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 for the quarter, compared to the consensus estimate of $709.85 million. UWM had a return on equity of 19.01% and a net margin of 1.92%. As a group, research analysts forecast that UWM Holdings Corporation will post 0.38 EPS for the current year.

UWM Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 18th will be given a dividend of $0.10 per share. The ex-dividend date is Thursday, June 18th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 19.5%. UWM’s dividend payout ratio (DPR) is 148.15%.

Insider Activity

In other news, CEO Ishbia Mat sold 1,003,333 shares of UWM stock in a transaction on Monday, May 4th. The shares were sold at an average price of $3.57, for a total value of $3,581,898.81. Following the transaction, the chief executive officer directly owned 2,995,754 shares of the company’s stock, valued at $10,694,841.78. The trade was a 25.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 20,940,338 shares of company stock worth $76,849,387 in the last 90 days. Company insiders own 80.30% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of UWMC. Dimensional Fund Advisors LP increased its stake in UWM by 4.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 55,509 shares of the company’s stock valued at $243,000 after purchasing an additional 2,329 shares during the period. Public Employees Retirement System of Ohio boosted its stake in shares of UWM by 4.9% during the fourth quarter. Public Employees Retirement System of Ohio now owns 51,423 shares of the company’s stock worth $225,000 after buying an additional 2,407 shares during the period. Allworth Financial LP boosted its stake in shares of UWM by 62.5% during the fourth quarter. Allworth Financial LP now owns 6,765 shares of the company’s stock worth $30,000 after buying an additional 2,602 shares during the period. Choreo LLC grew its holdings in shares of UWM by 16.1% during the fourth quarter. Choreo LLC now owns 19,017 shares of the company’s stock worth $84,000 after buying an additional 2,637 shares during the last quarter. Finally, Fortem Financial Group LLC grew its holdings in shares of UWM by 29.5% during the fourth quarter. Fortem Financial Group LLC now owns 16,685 shares of the company’s stock worth $73,000 after buying an additional 3,800 shares during the last quarter. 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.