UWM (NYSE:UWMC) Sets New 1-Year Low – What’s Next?

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

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on UWMC shares. Barclays dropped their price objective on shares of UWM from $6.00 to $5.00 and set an “overweight” rating for the company in a research note on Monday, April 6th. Zacks Research upgraded UWM from a “strong sell” rating to a “hold” rating in a report on Monday, March 30th. Morgan Stanley set a $5.00 price objective on shares of UWM in a research note on Thursday, May 7th. Compass Point began coverage on shares of UWM in a research report on Tuesday, March 10th. They set a “buy” rating and a $8.50 price objective on the stock. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $5.50 price target on shares of UWM in a research note on Thursday, May 7th. Three equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, UWM currently has a consensus rating of “Hold” and an average price target of $5.19.

UWM Trading Down 7.4%

The company’s 50 day simple moving average is $3.11 and its two-hundred day simple moving average is $4.11. 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 $3.29 billion, a price-to-earnings ratio of 7.61 and a beta of 1.72.

UWM (NYSE:UWMC) last released its 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 company had revenue of $901.43 million for the quarter, compared to the consensus estimate of $709.85 million. UWM had a net margin of 1.92% and a return on equity of 19.01%. As a group, research 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 disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 18th will be paid a dividend of $0.10 per share. 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 19.5%. UWM’s dividend payout ratio (DPR) is presently 148.15%.

Insider Transactions at UWM

In other UWM news, CEO Ishbia Mat sold 1,003,333 shares of UWM stock in a transaction on 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 available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 20,940,338 shares of company stock worth $76,849,387 over the last quarter. Corporate insiders own 80.30% of the company’s stock.

Institutional Trading of UWM

Several institutional investors have recently modified their holdings of UWMC. Dimensional Fund Advisors LP grew its position in shares of UWM by 4.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 55,509 shares of the company’s stock valued at $243,000 after purchasing an additional 2,329 shares in the last quarter. Public Employees Retirement System of Ohio boosted its position in shares of UWM by 4.9% during the fourth quarter. Public Employees Retirement System of Ohio now owns 51,423 shares of the company’s stock worth $225,000 after buying an additional 2,407 shares during the period. Allworth Financial LP boosted its holdings in UWM by 62.5% during the 4th quarter. Allworth Financial LP now owns 6,765 shares of the company’s stock valued at $30,000 after acquiring an additional 2,602 shares during the period. Choreo LLC increased its stake in UWM by 16.1% during the 4th quarter. Choreo LLC now owns 19,017 shares of the company’s stock worth $84,000 after buying an additional 2,637 shares during the period. Finally, Fortem Financial Group LLC raised its stake in shares of UWM by 29.5% in the fourth quarter. Fortem Financial Group LLC now owns 16,685 shares of the company’s stock valued at $73,000 after acquiring an additional 3,800 shares in the last quarter. Institutional investors and hedge funds 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.