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

Shares of UWM Holdings Corporation (NYSE:UWMC) hit a new 52-week low on Tuesday . The stock traded as low as $1.87 and last traded at $1.8850, with a volume of 21585376 shares changing hands. The stock had previously closed at $2.02.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on UWMC shares. Keefe, Bruyette & Woods upgraded UWM from a “market perform” rating to an “outperform” rating and lowered their price objective for the company from $4.50 to $3.75 in a research report on Thursday, June 25th. Zacks Research upgraded shares of UWM from a “strong sell” rating to a “hold” rating in a report on Monday, March 30th. Morgan Stanley decreased their target price on shares of UWM from $5.00 to $3.00 and set an “equal weight” rating on the stock in a research note on Monday. Weiss Ratings lowered shares of UWM from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, June 15th. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $5.50 price target on shares of UWM in a research report on Thursday, May 7th. Four analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, UWM presently has a consensus rating of “Hold” and a consensus target price of $4.81.

UWM Price Performance

The company has a debt-to-equity ratio of 3.13, a current ratio of 1.52 and a quick ratio of 1.52. The firm has a market cap of $2.92 billion, a PE ratio of 6.76 and a beta of 1.76. The firm has a 50-day simple moving average of $2.43 and a 200 day simple moving average of $3.65.

UWM (NYSE:UWMC) last released its earnings results on Wednesday, May 6th. The company reported $0.09 earnings per share for the quarter, topping analysts’ consensus estimates of $0.06 by $0.03. UWM had a net margin of 1.92% and a return on equity of 19.01%. The firm had revenue of $901.43 million for the quarter, compared to the consensus estimate of $709.85 million. As a group, equities analysts expect that UWM Holdings Corporation will post 0.34 EPS for the current year.

UWM Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 9th. Shareholders of record on Thursday, June 18th were paid a dividend of $0.10 per share. The ex-dividend date of this dividend was Thursday, June 18th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 21.9%. UWM’s dividend payout ratio (DPR) is currently 148.15%.

Insider Buying and Selling at UWM

In other news, CEO Ishbia Mat sold 1,003,333 shares of UWM stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $3.39, for a total transaction of $3,401,298.87. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 8,933,450 shares of company stock worth $32,223,787 over the last ninety days. 80.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Tudor Investment Corp ET AL purchased a new stake in UWM in the third quarter worth approximately $12,237,000. Vanguard Group Inc. lifted its holdings in shares of UWM by 9.7% during the 4th quarter. Vanguard Group Inc. now owns 18,959,442 shares of the company’s stock valued at $83,042,000 after buying an additional 1,676,754 shares during the period. Great Hill Capital LLC lifted its holdings in shares of UWM by 9,900.0% during the 4th quarter. Great Hill Capital LLC now owns 2,000,000 shares of the company’s stock valued at $88,000 after buying an additional 1,980,000 shares during the period. UBS Group AG lifted its holdings in shares of UWM by 93.8% during the 4th quarter. UBS Group AG now owns 3,347,300 shares of the company’s stock valued at $14,661,000 after buying an additional 1,620,003 shares during the period. Finally, BW Gestao de Investimentos Ltda. purchased a new position in shares of UWM in the 4th quarter worth $5,695,000. 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.