UWM (NYSE:UWMC) Stock Rating Lowered by Compass Point

Key Points

• Compass Point downgraded UWM from “Buy” to “Neutral” and set a $1.50 price target, implying approximately 6% upside from the prior close.
• Analyst sentiment has weakened, with ratings including four Buys, nine Holds and one Sell; the consensus rating is “Hold” with an average price target of $2.76.
• UWM shares opened at $1.42, while the company’s latest quarterly results missed EPS expectations, reporting a $0.23 loss per share versus the projected $0.07 profit.

UWM (NYSE:UWMC - Get Free Report) was downgraded by Compass Point from a "buy" rating to a "neutral" rating in a note issued to investors on Tuesday, Marketbeat reports. They currently have a $1.50 price target on the stock. Compass Point's price objective points to a potential upside of 6.01% from the stock's previous close.

Several other brokerages have also issued reports on UWMC. Wall Street Zen lowered UWM from a "hold" rating to a "sell" rating in a research report on Saturday, August 15th. Stephens decreased their price objective on UWM from $3.00 to $2.00 and set an "equal weight" rating for the company in a report on Friday, August 7th. Weiss Ratings lowered UWM from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, August 11th. Keefe, Bruyette & Woods cut shares of UWM from an "outperform" rating to a "market perform" rating and set a $1.50 price target for the company. in a research report on Wednesday, October 7th. Finally, BTIG Research restated a "neutral" rating on shares of UWM in a report on Friday. Four research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $2.76.

UWM Stock Down 2.4%

Shares of UWM stock opened at $1.42 on Tuesday. The company has a debt-to-equity ratio of 6.05, a quick ratio of 1.64 and a current ratio of 1.64. UWM has a 52-week low of $0.93 and a 52-week high of $6.15. The stock has a market capitalization of $2.27 billion, a price-to-earnings ratio of -17.69 and a beta of 1.82. The company's 50 day moving average price is $1.29 and its 200-day moving average price is $2.88.

UWM (NYSE:UWMC - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported ($0.23) EPS for the quarter, missing the consensus estimate of $0.07 by ($0.30). The firm had revenue of $888.00 million during the quarter, compared to analysts' expectations of $727.46 million. UWM had a negative return on equity of 6.20% and a negative net margin of 1.04%. Equities research analysts forecast that UWM will post -0.06 EPS for the current year.

Institutional Trading of UWM

Several large investors have recently modified their holdings of the company. Bank of America Corp DE increased its position in shares of UWM by 127.4% during the 1st quarter. Bank of America Corp DE now owns 6,969,809 shares of the company's stock valued at $25,231,000 after purchasing an additional 3,905,286 shares during the last quarter. Bank of New York Mellon Corp purchased a new stake in UWM in the 2nd quarter worth $4,593,000. Squarepoint Ops LLC lifted its holdings in UWM by 179.6% in the 2nd quarter. Squarepoint Ops LLC now owns 1,774,823 shares of the company's stock worth $4,064,000 after purchasing an additional 1,140,136 shares in the last quarter. Engineers Gate Manager LP purchased a new position in shares of UWM in the second quarter worth $1,473,000. Finally, Healthcare of Ontario Pension Plan Trust Fund purchased a new position in shares of UWM during the first quarter valued at about $1,147,000. 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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