UWM (NYSE:UWMC) Sets New 1-Year Low – Here’s Why

UWM Holdings Corporation (NYSE:UWMC)’s stock price reached a new 52-week low during trading on Wednesday . The company traded as low as $2.83 and last traded at $2.9250, with a volume of 19770058 shares traded. The stock had previously closed at $2.92.

Analysts Set New Price Targets

A number of research firms have recently commented on UWMC. Weiss Ratings raised shares of UWM from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, May 12th. Compass Point initiated coverage on shares of UWM in a report on Tuesday, March 10th. They set a “buy” rating and a $8.50 price objective for the company. Jefferies Financial Group set a $4.40 target price on shares of UWM in a research report on Wednesday, February 25th. Barclays dropped 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. Finally, Keefe, Bruyette & Woods dropped their target price on shares of UWM from $5.00 to $4.50 and set a “market perform” rating for the company in a research report on Friday, May 8th. Three equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $5.79.

UWM Stock Up 0.2%

The firm has a market cap of $4.68 billion, a price-to-earnings ratio of 10.83 and a beta of 1.78. The company has a debt-to-equity ratio of 3.13, a quick ratio of 1.52 and a current ratio of 1.52. The business’s 50-day moving average is $3.59 and its 200-day moving average is $4.58.

UWM (NYSE:UWMC) last announced its earnings results on Wednesday, May 6th. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.06 by $0.03. The business had revenue of $901.43 million during 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%. On average, equities analysts predict that UWM Holdings Corporation will post 0.38 EPS for the current year.

UWM Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 18th will be given a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 13.7%. The ex-dividend date is Thursday, June 18th. UWM’s dividend payout ratio (DPR) is presently 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 30,005,626 shares of company stock valued at $112,530,668. Company insiders own 80.30% of the company’s stock.

Institutional Investors Weigh In On UWM

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Integrated Investment Consultants LLC acquired a new stake in UWM in the 3rd quarter valued at about $32,630,000. Tudor Investment Corp ET AL acquired a new stake in UWM in the 3rd quarter valued at about $12,237,000. Alight Capital Management LP acquired a new stake in UWM in the 3rd quarter valued at about $3,958,000. Vanguard Group Inc. increased its position in UWM by 6.2% in the 3rd 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 in the last quarter. Finally, Luxor Capital Group LP acquired a new stake in UWM in the 3rd quarter valued at about $7,473,000. 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.