UWM (NYSE:UWMC) Sets New 12-Month Low – Here’s Why

UWM Holdings Corporation (NYSE:UWMC) shares hit a new 52-week low on Wednesday . The company traded as low as $2.28 and last traded at $2.4350, with a volume of 28081574 shares changing hands. The stock had previously closed at $2.35.

Analyst Upgrades and Downgrades

UWMC has been the subject of a number of analyst reports. Argus raised UWM to a “hold” rating in a research note on Tuesday, March 31st. Compass Point assumed coverage on UWM in a report on Tuesday, March 10th. They set a “buy” rating and a $8.50 price objective on the stock. Wall Street Zen upgraded UWM from a “strong sell” rating to a “hold” rating in a research report on Saturday, February 28th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $5.50 target price on shares of UWM in a report on Thursday, May 7th. Finally, BTIG Research decreased their target price on shares of UWM to $4.00 and set a “buy” rating on the stock in a research report on Tuesday. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $5.19.

UWM Stock Performance

The stock’s fifty day simple moving average is $3.18 and its 200-day simple moving average is $4.16. 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 market capitalization of $3.51 billion, a PE ratio of 8.13 and a beta of 1.72.

UWM (NYSE:UWMC) last announced its quarterly 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. UWM had a return on equity of 19.01% and a net margin of 1.92%.The business had revenue of $901.43 million for the quarter, compared to analyst estimates of $709.85 million. On average, research analysts predict 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. Shareholders 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 annualized dividend and a yield of 18.2%. UWM’s dividend payout ratio is 148.15%.

Insiders Place Their Bets

In other news, CEO Ishbia Mat sold 1,003,333 shares of the firm’s stock in a transaction on Friday, May 8th. The stock was 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 Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 21,940,912 shares of company stock valued at $80,571,523 over the last quarter. 80.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On UWM

A number of large investors have recently added to or reduced their stakes in the business. Allworth Financial LP raised its position in UWM by 5,681.9% during the third quarter. Allworth Financial LP now owns 4,163 shares of the company’s stock worth $25,000 after acquiring an additional 4,091 shares during the last quarter. Raymond James Financial Inc. acquired a new stake in shares of UWM in the second quarter valued at approximately $35,000. Farther Finance Advisors LLC grew its position in shares of UWM by 1,410.7% in the fourth quarter. Farther Finance Advisors LLC now owns 8,596 shares of the company’s stock valued at $38,000 after purchasing an additional 8,027 shares during the last quarter. Advisory Services Network LLC purchased a new position in shares of UWM during the 3rd quarter worth approximately $38,000. Finally, Fifth Third Bancorp purchased a new position in shares of UWM during the 1st quarter worth approximately $41,000. 53.59% of the stock is owned by institutional investors and hedge funds.

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.