Keefe, Bruyette & Woods Issues Pessimistic Forecast for UWM (NYSE:UWMC) Stock Price

Key Points

• Keefe, Bruyette & Woods cut UWM’s price target from $3.75 to $2.75 while maintaining an “outperform” rating, implying roughly 103% upside from the reported $1.35 share price.
• Analyst sentiment is mixed: six analysts rate UWM a Buy, six Hold, and two Sell, resulting in a consensus “Hold” rating and an average target of $4.01.
• UWM’s latest quarterly results missed expectations sharply, with a loss of $0.23 per share versus a projected $0.07 profit and revenue of $162.13 million compared with estimates of $727.46 million.

UWM (NYSE:UWMC - Get Free Report) had its target price decreased by research analysts at Keefe, Bruyette & Woods from $3.75 to $2.75 in a research note issued to investors on Monday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Keefe, Bruyette & Woods' price objective points to a potential upside of 102.95% from the company's current price.

A number of other brokerages have also recently issued reports on UWMC. BTIG Research cut their target price on shares of UWM from $4.00 to $2.00 and set a "buy" rating on the stock in a report on Friday. Morgan Stanley cut their target price on UWM from $5.00 to $3.00 and set an "equal weight" rating for the company in a research report on Monday, July 20th. Citizens Jmp raised shares of UWM from a "market perform" rating to an "outperform" rating and set a $3.00 price objective on the stock in a research note on Wednesday, July 29th. Barclays restated an "overweight" rating and issued a $2.00 target price on shares of UWM in a report on Friday. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $5.50 price target on shares of UWM in a report on Thursday, May 7th. Six research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $4.01.

UWM Stock Up 5.9%

UWMC stock traded up $0.07 during midday trading on Monday, hitting $1.35. 13,962,532 shares of the company's stock were exchanged, compared to its average volume of 19,823,193. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 3.13. The firm has a 50 day moving average price of $2.13 and a 200-day moving average price of $3.36. The stock has a market capitalization of $2.17 billion, a price-to-earnings ratio of -17.06 and a beta of 1.79. UWM has a 12-month low of $0.93 and a 12-month high of $7.14.

UWM (NYSE:UWMC - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported ($0.23) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.07 by ($0.30). UWM had a negative net margin of 1.04% and a negative return on equity of 5.61%. The company had revenue of $162.13 million during the quarter, compared to analyst estimates of $727.46 million. On average, analysts anticipate that UWM will post 0.3 EPS for the current year.

Hedge Funds Weigh In On UWM

A number of large investors have recently modified their holdings of UWMC. Vanguard Group Inc. lifted its stake in UWM by 9.7% in the 4th quarter. Vanguard Group Inc. now owns 18,959,442 shares of the company's stock valued at $83,042,000 after acquiring an additional 1,676,754 shares in the last quarter. Azora Capital LP lifted its stake in UWM by 230.8% during the fourth quarter. Azora Capital LP now owns 11,296,053 shares of the company's stock worth $49,477,000 after purchasing an additional 7,881,586 shares during the last quarter. Brandes Investment Partners LP bought a new position in UWM in the 4th quarter valued at approximately $45,867,000. Bank of America Corp DE grew its holdings in shares of UWM by 127.4% during the first quarter. Bank of America Corp DE now owns 6,969,809 shares of the company's stock worth $25,231,000 after purchasing an additional 3,905,286 shares during the last quarter. Finally, Balyasny Asset Management L.P. raised its position in UWM by 116.6% during the 2nd quarter. Balyasny Asset Management L.P. now owns 5,991,072 shares of the company's stock worth $24,803,000 after purchasing an additional 3,224,806 shares during the last quarter. 53.59% of the stock is currently owned by institutional investors and hedge funds.

UWM Company Profile

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.

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