UWM (NYSE:UWMC) Stock Dropped to Strong Sell by Wall Street Zen

Key Points

• Wall Street Zen downgraded UWM from “sell” to “strong sell.” Despite the downgrade, analysts overall rated the stock “hold,” with an average price target of $2.45.
• UWM reported quarterly earnings of $0.10 per share, beating the $0.04 consensus estimate, and revenue of $811.09 million versus estimates of $690.29 million.
• Shares opened at $1.51 and traded within a 12-month range of $0.93 to $6.15; institutional investors held 53.59% of the company’s stock.

UWM (NYSE:UWMC - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a report issued on Saturday, Wall Street Zen reports.

A number of other equities analysts have also recently issued reports on UWMC. BTIG Research restated a "neutral" rating on shares of UWM in a report on Friday, October 23rd. Zacks Research upgraded shares of UWM from a "strong sell" rating to a "hold" rating in a research report on Tuesday, October 20th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $1.50 price objective on shares of UWM in a research report on Wednesday. Morgan Stanley set a $1.50 price objective on shares of UWM in a report on Monday, October 12th. Finally, Stephens decreased their price target on UWM from $3.00 to $2.00 and set an "equal weight" rating for the company in a report on Friday, August 7th. Four equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $2.45.

UWM Price Performance

Shares of NYSE UWMC opened at $1.51 on Friday. The company has a 50 day moving average of $1.31 and a 200 day moving average of $2.71. UWM has a twelve month low of $0.93 and a twelve month high of $6.15. The firm has a market cap of $2.43 billion, a P/E ratio of 75.75 and a beta of 1.82. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 6.05.

UWM (NYSE:UWMC - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The company reported $0.10 EPS for the quarter, topping the consensus estimate of $0.04 by $0.06. The company had revenue of $811.09 million for the quarter, compared to analyst estimates of $690.29 million. UWM had a negative return on equity of 6.20% and a negative net margin of 1.04%. As a group, research analysts expect that UWM will post 0.07 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Russell Investments Group Ltd. raised its holdings in UWM by 292.3% in the 3rd quarter. Russell Investments Group Ltd. now owns 278,659 shares of the company's stock valued at $329,000 after acquiring an additional 207,635 shares in the last quarter. R Squared Ltd boosted its stake in shares of UWM by 43.2% during the 3rd quarter. R Squared Ltd now owns 22,199 shares of the company's stock worth $26,000 after acquiring an additional 6,699 shares during the last quarter. Allspring Global Investments Holdings LLC bought a new stake in shares of UWM in the third quarter valued at about $35,000. 180 Wealth Advisors LLC boosted its position in UWM by 108.3% during the third quarter. 180 Wealth Advisors LLC now owns 1,005,130 shares of the company's stock worth $1,186,000 after purchasing an additional 522,609 shares in the last quarter. Finally, Signature Equity Partners LLC boosted its position in shares of UWM by 9.8% during the 3rd quarter. Signature Equity Partners LLC now owns 1,328,488 shares of the company's stock worth $1,568,000 after acquiring an additional 118,659 shares in the last quarter. Hedge funds and other institutional investors own 53.59% of the company's stock.

About UWM

UWM Holdings Corporation, through its principal subsidiary United Wholesale Mortgage (UWM), operates as a wholesale mortgage lender in the United States. The company provides residential mortgage loans through a network of independent mortgage brokers, who work directly with borrowers and submit applications to UWM for underwriting and funding.

UWM offers a range of home loan products, including conventional, government-backed, jumbo and other residential mortgage programs. Its platform also provides brokers with technology, loan processing, underwriting and closing services designed to support the origination of mortgages for home purchases and refinancings.

United Wholesale Mortgage traces its history to 1986 and is headquartered in Pontiac, Michigan.

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