UWM (NYSE:UWMC) Trading Down 4.7% – What’s Next?

UWM Holdings Corporation (NYSE:UWMC) shares were down 4.7% on Monday . The stock traded as low as $1.94 and last traded at $1.9250. 2,444,604 shares changed hands during trading, a decline of 87% from the average daily volume of 19,244,625 shares. The stock had previously closed at $2.02.

Analysts Set New Price Targets

Several research firms have commented on UWMC. BTIG Research reissued a “buy” rating and issued a $4.00 target price on shares of UWM in a research report on Wednesday, June 24th. Keefe, Bruyette & Woods raised shares of UWM from a “market perform” rating to an “outperform” rating and lowered their target price for the stock from $4.50 to $3.75 in a research report on Thursday, June 25th. Weiss Ratings lowered UWM from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, June 15th. Barclays reduced their price target on UWM from $5.00 to $4.00 and set an “overweight” rating for the company in a research report on Tuesday, July 7th. Finally, Stephens initiated coverage on UWM in a report on Friday, April 24th. They issued an “equal weight” rating and a $4.00 target price for the company. Four equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, UWM currently has an average rating of “Hold” and a consensus target price of $4.81.

UWM Price Performance

The company has a market capitalization of $3.03 billion, a P/E ratio of 7.02 and a beta of 1.76. The stock’s fifty day simple moving average is $2.51 and its 200-day simple moving average is $3.71. The company has a debt-to-equity ratio of 3.13, a current ratio of 1.52 and a quick ratio of 1.52.

UWM (NYSE:UWMC) last released its 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. The firm had revenue of $901.43 million for the quarter, compared to analyst estimates of $709.85 million. UWM had a return on equity of 19.01% and a net margin of 1.92%. On average, equities analysts forecast that UWM Holdings Corporation will post 0.36 earnings per share for the current fiscal year.

UWM Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 9th. Stockholders of record on Thursday, June 18th were paid a $0.10 dividend. The ex-dividend date was Thursday, June 18th. This represents a $0.40 annualized dividend and a dividend yield of 21.1%. UWM’s dividend payout ratio (DPR) is presently 148.15%.

Insider Buying and Selling

In other UWM news, CEO Ishbia Mat sold 1,003,333 shares of the 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 sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 9,934,024 shares of company stock worth $35,925,911. 80.30% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

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