UWM (NYSE:UWMC) Shares Down 13.5% – Should You Sell?

UWM Holdings Corporation (NYSE:UWMC) dropped 13.5% during trading on Friday . The company traded as low as $5.03 and last traded at $4.93. Approximately 3,845,282 shares were traded during mid-day trading, a decline of 78% from the average daily volume of 17,155,586 shares. The stock had previously closed at $5.70.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the company. Weiss Ratings reiterated a “sell (d+)” rating on shares of UWM in a report on Wednesday, October 8th. Keefe, Bruyette & Woods raised their price target on shares of UWM from $6.50 to $6.75 and gave the company a “market perform” rating in a report on Thursday, December 18th. UBS Group upped their price objective on shares of UWM from $5.50 to $6.00 and gave the stock a “neutral” rating in a report on Wednesday, November 12th. Zacks Research upgraded UWM from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 7th. Finally, The Goldman Sachs Group set a $5.00 price target on UWM in a research note on Tuesday, January 6th. Two equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, UWM currently has an average rating of “Hold” and a consensus target price of $6.53.

UWM Trading Down 10.8%

The firm’s 50-day simple moving average is $5.29 and its 200-day simple moving average is $5.38. The company has a quick ratio of 1.45, a current ratio of 1.45 and a debt-to-equity ratio of 2.40.

UWM (NYSE:UWMC) last released its earnings results on Thursday, November 6th. The company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.06). UWM had a net margin of 0.61% and a negative return on equity of 6.81%. The company had revenue of $151.14 million during the quarter, compared to the consensus estimate of $651.51 million. Research analysts forecast that UWM Holdings Corporation will post 0.2 EPS for the current fiscal year.

UWM Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, January 8th. Investors of record on Thursday, December 18th were paid a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 7.9%. The ex-dividend date was Thursday, December 18th.

Insiders Place Their Bets

In other UWM news, CEO Ishbia Mat sold 632,874 shares of the business’s stock in a transaction on Wednesday, January 28th. The shares were sold at an average price of $5.89, for a total value of $3,727,627.86. Following the sale, the chief executive officer owned 2,155,265 shares of the company’s stock, valued at $12,694,510.85. The trade was a 22.70% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Insiders have sold a total of 19,787,071 shares of company stock worth $105,009,906 in the last 90 days. 87.50% of the stock is owned by insiders.

Hedge Funds Weigh In On UWM

Several institutional investors have recently added to or reduced their stakes in UWMC. Allworth Financial LP increased its holdings in shares of 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 buying an additional 4,091 shares in the last quarter. GAMMA Investing LLC grew its position in UWM by 408.7% during the 3rd quarter. GAMMA Investing LLC now owns 5,407 shares of the company’s stock worth $33,000 after acquiring an additional 4,344 shares during the last quarter. Raymond James Financial Inc. acquired a new stake in UWM during the 2nd quarter valued at $35,000. Farther Finance Advisors LLC increased its holdings in UWM by 1,410.7% during the 4th 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 in the last quarter. Finally, Advisory Services Network LLC bought a new position in UWM in the 3rd quarter valued at $38,000. 53.59% of the stock is owned by institutional investors.

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.