UWM (NYSE:UWMC) Stock Price Down 4.7% – Here’s What Happened

UWM Holdings Corporation (NYSE:UWMC) shares traded down 4.7% during mid-day trading on Monday . The company traded as low as $1.94 and last traded at $1.9250. Approximately 2,444,604 shares traded hands during mid-day trading, a decline of 87% from the average session volume of 19,244,625 shares. The stock had previously closed at $2.02.

Analyst Upgrades and Downgrades

Several research firms have recently commented on UWMC. Keefe, Bruyette & Woods upgraded UWM from a “market perform” rating to an “outperform” rating and reduced their target price for the company from $4.50 to $3.75 in a research note on Thursday, June 25th. Zacks Research upgraded shares of UWM from a “strong sell” rating to a “hold” rating in a research note on Monday, March 30th. Barclays cut their price target on shares of UWM from $5.00 to $4.00 and set an “overweight” rating on the stock in a report on Tuesday, July 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. Finally, Morgan Stanley decreased their price objective on shares of UWM from $5.00 to $3.00 and set an “equal weight” rating for the company in a report on Monday. Four investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $4.81.

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 company has a 50 day simple moving average of $2.46 and a 200-day simple moving average of $3.67. The stock has a market cap of $3.05 billion, a price-to-earnings ratio of 7.06 and a beta of 1.76.

UWM (NYSE:UWMC) last issued its earnings results on Wednesday, May 6th. The company reported $0.09 EPS for the quarter, topping the consensus estimate of $0.06 by $0.03. The company had revenue of $901.43 million during the quarter, compared to analyst estimates 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 anticipate that UWM Holdings Corporation will post 0.36 EPS for the current fiscal year.

UWM Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 9th. Investors of record on Thursday, June 18th were given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 21.0%. The ex-dividend date of this dividend was Thursday, June 18th. UWM’s dividend payout ratio is currently 148.15%.

Insiders Place Their Bets

In other UWM news, CEO Ishbia Mat sold 1,003,333 shares of the firm’s stock in a transaction dated 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 SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 8,933,450 shares of company stock worth $32,223,787 in the last quarter. 80.30% of the stock is owned by corporate insiders.

Institutional Trading of UWM

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its position in UWM by 9.7% during the 4th quarter. Vanguard Group Inc. now owns 18,959,442 shares of the company’s stock valued at $83,042,000 after purchasing an additional 1,676,754 shares during the period. Azora Capital LP increased its position in UWM by 230.8% in the fourth quarter. Azora Capital LP now owns 11,296,053 shares of the company’s stock worth $49,477,000 after buying an additional 7,881,586 shares during the period. Brandes Investment Partners LP bought a new stake in UWM in the fourth quarter valued at $45,867,000. Bank of America Corp DE lifted its stake in UWM by 127.4% in the first 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. Finally, Balyasny Asset Management L.P. boosted its holdings in shares of UWM by 116.6% during the second quarter. Balyasny Asset Management L.P. now owns 5,991,072 shares of the company’s stock valued at $24,803,000 after acquiring an additional 3,224,806 shares during the period. 53.59% of the stock is currently owned by institutional investors and hedge funds.

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.