UWM (NYSE:UWMC) Issues Quarterly Earnings Results

UWM (NYSE:UWMC) issued its earnings results on Wednesday. The company reported $0.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.04 by $0.06, Zacks reports. UWM had a net margin of 0.55% and a return on equity of 4.24%. The company had revenue of $811.09 million during the quarter, compared to analysts’ expectations of $690.29 million.

Here are the key takeaways from UWM’s conference call:

• UWM reported $33.4 billion in loan volume and described the quarter as profitable, saying its wholesale business remains strong despite a difficult mortgage-market backdrop.
• Management expects expenses to remain lower, citing AI and technology investments and a gradual shift to in-house servicing; it called $2.1 billion a reasonable 2027 expense target, while noting costs could rise if loan volume grows substantially.
• The company said MSR sales are helping generate liquidity and reduce risk and leverage. Management targets leverage below 1.5 by year-end, from about 1.7–1.8 currently, while emphasizing that MSR sales will remain opportunistic.
• Management expects fourth-quarter volume to be lower than in stronger periods, citing seasonal patterns and market headwinds, and said it does not expect $40 billion–$60 billion of quarterly volume. It also offered no firm timeline for repaying the costly Oaktree preferred financing, saying repayment depends on earnings and market conditions.
• UWM said it has moved 700,000 loans onto its in-house servicing platform and expects further efficiency gains and improved service levels as it optimizes the system; these benefits remain prospective.

UWM Price Performance

Shares of UWMC traded down $0.10 during trading hours on Friday, reaching $1.53. 7,714,743 shares of the company traded hands, compared to its average volume of 18,089,209. The stock has a market capitalization of $2.46 billion, a PE ratio of 76.75, a price-to-earnings-growth ratio of 3.45 and a beta of 1.82. The stock has a fifty day simple moving average of $1.31 and a 200 day simple moving average of $2.73. UWM has a fifty-two week low of $0.93 and a fifty-two week high of $6.15. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 6.05.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on UWMC. Wall Street Zen downgraded UWM from a “hold” rating to a “sell” rating in a research note on Saturday, August 15th. Zacks Research raised UWM from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 20th. Keefe, Bruyette & Woods cut UWM from an “outperform” rating to a “market perform” rating and set a $1.50 price target for the company. in a research report on Wednesday, October 7th. Citizens Jmp raised UWM from a “market perform” rating to an “outperform” rating and set a $3.00 price target for the company in a research note on Wednesday, July 29th. Finally, BTIG Research reiterated a “neutral” rating on shares of UWM in a research report on Friday, October 23rd. Four analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $2.45.

UWM Company Profile

UWM Holdings Corporation, through its principal subsidiary United Wholesale Mortgage (UWM), operates as a wholesale mortgage lender in the United States. The company provides residential mortgage loans through a network of independent mortgage brokers, who work directly with borrowers and submit applications to UWM for underwriting and funding.

UWM offers a range of home loan products, including conventional, government-backed, jumbo and other residential mortgage programs. Its platform also provides brokers with technology, loan processing, underwriting and closing services designed to support the origination of mortgages for home purchases and refinancings.

United Wholesale Mortgage traces its history to 1986 and is headquartered in Pontiac, Michigan.