UWM (NYSE:UWMC) Sets New 52-Week Low – What’s Next?

UWM Holdings Corporation (NYSE:UWMC)’s share price reached a new 52-week low during trading on Friday . The stock traded as low as $2.58 and last traded at $2.6150, with a volume of 12337229 shares changing hands. The stock had previously closed at $2.62.

Wall Street Analysts Forecast Growth

UWMC has been the topic of several research analyst reports. Keefe, Bruyette & Woods reiterated a “market perform” rating on shares of UWM in a research note on Friday. Compass Point assumed coverage on shares of UWM in a report on Tuesday, March 10th. They set a “buy” rating and a $8.50 target price on the stock. Morgan Stanley set a $5.00 target price on shares of UWM in a report on Thursday, May 7th. Stephens assumed coverage on shares of UWM in a report on Friday, April 24th. They set an “equal weight” rating and a $4.00 target price on the stock. Finally, Weiss Ratings raised shares of UWM from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, May 12th. Three research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat, UWM currently has a consensus rating of “Hold” and a consensus price target of $5.79.

UWM Trading Down 1.7%

The stock has a market cap of $4.12 billion, a P/E ratio of 9.54 and a beta of 1.72. The firm’s fifty day moving average price is $3.40 and its two-hundred day moving average price is $4.36. The company has a debt-to-equity ratio of 3.13, a current ratio of 1.52 and a quick ratio of 1.52.

UWM (NYSE:UWMC) last released its quarterly earnings results on Wednesday, May 6th. The company reported $0.09 earnings per share for the quarter, topping the consensus estimate of $0.06 by $0.03. The firm had revenue of $901.43 million for 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%. As a group, equities research analysts forecast that UWM Holdings Corporation will post 0.38 EPS for the current year.

UWM Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 18th will be paid a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 15.5%. The ex-dividend date of this dividend is Thursday, June 18th. UWM’s dividend payout ratio is currently 148.15%.

Insider Buying and Selling

In related news, CEO Ishbia Mat sold 1,003,333 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $3.57, for a total value of $3,581,898.81. Following the transaction, the chief executive officer owned 2,995,754 shares of the company’s stock, valued at $10,694,841.78. This represents a 25.09% decrease in their ownership of the stock. The transaction 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 sold a total of 26,841,256 shares of company stock valued at $98,809,960 over the last quarter. 80.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Integrated Investment Consultants LLC bought a new position in UWM in the third quarter valued at $32,630,000. Tudor Investment Corp ET AL bought a new position in UWM in the third quarter valued at $12,237,000. Alight Capital Management LP bought a new position in UWM in the third quarter valued at $3,958,000. Vanguard Group Inc. increased its stake in UWM by 6.2% in 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 during the last quarter. Finally, Luxor Capital Group LP bought a new position in UWM in the third quarter valued at $7,473,000. Institutional investors own 53.59% of the company’s stock.

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.