UWM (NYSE:UWMC) Reaches New 52-Week Low – Should You Sell?

UWM Holdings Corporation (NYSE:UWMC) shares reached 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 trading hands. The stock had previously closed at $2.22.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on UWMC shares. Zacks Research upgraded shares of UWM from a “strong sell” rating to a “hold” rating in a report on Monday, March 30th. Barclays reduced their price target on UWM from $6.00 to $5.00 and set an “overweight” rating for the company in a research report on Monday, April 6th. Compass Point began coverage on shares of UWM in a report on Tuesday, March 10th. They issued a “buy” rating and a $8.50 price target on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $5.50 price target on shares of UWM in a research report on Thursday, May 7th. Finally, Keefe, Bruyette & Woods reissued a “market perform” rating on shares of UWM in a research report on Friday, June 5th. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, UWM has an average rating of “Hold” and a consensus price target of $5.19.

UWM Stock Performance

The firm has a fifty day moving average of $3.04 and a 200 day moving average of $4.06. The company has a debt-to-equity ratio of 3.13, a current ratio of 1.52 and a quick ratio of 1.52. The stock has a market capitalization of $3.23 billion, a price-to-earnings ratio of 7.46 and a beta of 1.72.

UWM (NYSE:UWMC) last announced its quarterly earnings results on Wednesday, May 6th. The company reported $0.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.06 by $0.03. UWM had a return on equity of 19.01% and a net margin of 1.92%.The company had revenue of $901.43 million during the quarter, compared to the consensus estimate of $709.85 million. On average, sell-side analysts anticipate that UWM Holdings Corporation will post 0.38 earnings per share for the current fiscal 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 annualized dividend and a dividend yield of 19.9%. The ex-dividend date is Thursday, June 18th. UWM’s payout ratio is currently 148.15%.

Insider Transactions at UWM

In related news, CEO Ishbia Mat sold 1,003,333 shares of the firm’s stock in a transaction on Friday, May 8th. The shares were sold at an average price of $3.39, for a total transaction of $3,401,298.87. The transaction was disclosed in a document filed 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 19,939,764 shares of company stock worth $73,297,350 over the last quarter. Corporate insiders own 80.30% of the company’s stock.

Institutional Investors Weigh In On UWM

Hedge funds have recently modified their holdings of the company. Allworth Financial LP grew its position in shares of UWM by 5,681.9% during the 3rd quarter. Allworth Financial LP now owns 4,163 shares of the company’s stock valued at $25,000 after acquiring an additional 4,091 shares during the period. Advisory Services Network LLC acquired a new position in UWM in the 3rd quarter worth about $38,000. Raymond James Financial Inc. purchased a new position in UWM during the second quarter worth approximately $35,000. Farther Finance Advisors LLC boosted its position in UWM by 1,410.7% during the fourth quarter. Farther Finance Advisors LLC now owns 8,596 shares of the company’s stock worth $38,000 after purchasing an additional 8,027 shares in the last quarter. Finally, Focus Partners Wealth acquired a new stake in UWM in the first quarter valued at approximately $55,000. 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.