UWM (NYSE:UWMC) Trading 9.3% Higher – Should You Buy?

Shares of UWM Holdings Corporation (NYSE:UWMC) traded up 9.3% on Tuesday . The company traded as high as $2.27 and last traded at $2.2950. 2,679,991 shares were traded during trading, a decline of 86% from the average daily volume of 19,425,498 shares. The stock had previously closed at $2.10.

Analyst Ratings Changes

A number of brokerages have recently weighed in on UWMC. Stephens assumed coverage on UWM in a report on Friday, April 24th. They issued an “equal weight” rating and a $4.00 target price on the stock. Barclays cut their target price on shares of UWM from $6.00 to $5.00 and set an “overweight” rating for the company in a research report on Monday, April 6th. Zacks Research raised shares of UWM from a “strong sell” rating to a “hold” rating in a research note on Monday, March 30th. BTIG Research restated a “buy” rating and set a $4.00 price target on shares of UWM in a report on Wednesday, June 24th. Finally, Compass Point started coverage on shares of UWM in a report on Tuesday, March 10th. They set a “buy” rating and a $8.50 price target on the stock. Four analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, UWM has a consensus rating of “Hold” and an average price target of $4.99.

UWM Stock Performance

The company has a market cap of $3.75 billion, a P/E ratio of 8.65 and a beta of 1.72. 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 stock’s 50-day moving average price is $2.94 and its 200 day moving average price is $3.99.

UWM (NYSE:UWMC) last issued its quarterly 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 return on equity of 19.01% and a net margin of 1.92%.The company had revenue of $901.43 million for the quarter, compared to the consensus estimate of $709.85 million. As a group, research analysts expect that UWM Holdings Corporation will post 0.38 EPS for the current fiscal year.

UWM Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 18th will be issued a $0.10 dividend. The ex-dividend date of this dividend is Thursday, June 18th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 17.1%. UWM’s dividend payout ratio is presently 148.15%.

Insider Transactions at UWM

In related news, CEO Ishbia Mat sold 1,003,333 shares of UWM stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $3.57, for a total transaction of $3,581,898.81. Following the completion of the transaction, the chief executive officer directly owned 2,995,754 shares of the company’s stock, valued at $10,694,841.78. This trade represents a 25.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 17,938,616 shares of company stock worth $66,253,309 in the last three months. Corporate insiders own 80.30% of the company’s stock.

Institutional Investors Weigh In On UWM

Several hedge funds and other institutional investors have recently added to or reduced their stakes in UWMC. Allworth Financial LP raised its holdings in UWM by 5,681.9% during the 3rd quarter. Allworth Financial LP now owns 4,163 shares of the company’s stock worth $25,000 after purchasing an additional 4,091 shares during the last quarter. Advisory Services Network LLC bought a new position in shares of UWM in the 3rd quarter valued at about $38,000. Raymond James Financial Inc. bought a new position in shares of UWM in the 2nd quarter valued at about $35,000. Farther Finance Advisors LLC grew its position in shares of UWM by 1,410.7% during the 4th quarter. Farther Finance Advisors LLC now owns 8,596 shares of the company’s stock worth $38,000 after buying an additional 8,027 shares during the period. Finally, Focus Partners Wealth acquired a new stake in shares of UWM during the 1st quarter worth approximately $55,000. Institutional investors and hedge funds own 53.59% of the company’s stock.

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.