UWM (NYSE:UWMC) Sets New 1-Year Low – Here’s Why

UWM Holdings Corporation (NYSE:UWMC)’s stock price reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $1.87 and last traded at $1.8850, with a volume of 21585376 shares changing hands. The stock had previously closed at $2.02.

Analyst Ratings Changes

Several research analysts recently commented on the company. Barclays reduced their price target on UWM from $5.00 to $4.00 and set an “overweight” rating for the company in a research report on Tuesday, July 7th. Zacks Research raised UWM from a “strong sell” rating to a “hold” rating in a research report on Monday, March 30th. Weiss Ratings cut UWM from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, June 15th. Argus raised UWM to a “hold” rating in a report on Tuesday, March 31st. Finally, Stephens assumed coverage on shares of UWM in a research note on Friday, April 24th. They issued an “equal weight” rating and a $4.00 target price for the company. Four research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, UWM has an average rating of “Hold” and a consensus price target of $4.81.

UWM Stock Down 6.7%

The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 3.13. The firm’s 50 day moving average price is $2.49 and its two-hundred day moving average price is $3.69. The company has a market capitalization of $3.02 billion, a price-to-earnings ratio of 6.98 and a beta of 1.76.

UWM (NYSE:UWMC) last issued its earnings results on Wednesday, May 6th. The company reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.06 by $0.03. UWM had a net margin of 1.92% and a return on equity of 19.01%. The business had revenue of $901.43 million during the quarter, compared to the consensus estimate of $709.85 million. Sell-side analysts anticipate that UWM Holdings Corporation will post 0.36 earnings per share for the current fiscal year.

UWM Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 9th. Stockholders of record on Thursday, June 18th were given a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 21.2%. The ex-dividend date of this dividend was Thursday, June 18th. UWM’s dividend payout ratio (DPR) is presently 148.15%.

Insider Activity at UWM

In other news, CEO Ishbia Mat sold 1,003,333 shares of UWM stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $3.39, for a total transaction of $3,401,298.87. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 9,934,024 shares of company stock worth $35,925,911. Insiders own 80.30% of the company’s stock.

Hedge Funds Weigh In On UWM

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Allworth Financial LP raised its position in shares of UWM by 5,681.9% in the third quarter. Allworth Financial LP now owns 4,163 shares of the company’s stock valued at $25,000 after purchasing an additional 4,091 shares during the period. Raymond James Financial Inc. acquired a new position in UWM in the 2nd quarter valued at about $35,000. Farther Finance Advisors LLC grew its stake in UWM by 1,410.7% in the 4th quarter. Farther Finance Advisors LLC now owns 8,596 shares of the company’s stock valued at $38,000 after buying an additional 8,027 shares during the last quarter. Advisory Services Network LLC bought a new position in UWM in the 3rd quarter valued at about $38,000. Finally, Fifth Third Bancorp acquired a new stake in UWM during the first quarter worth approximately $41,000. 53.59% of the stock is owned by institutional investors.

UWM Company Profile

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.