UWM (NYSE:UWMC) Shares Climb 10.4% - Should You Buy?

Key Points

• UWM shares jumped 10.4% to about $1.12, although trading volume was roughly half its average. The stock remains below its 50-day and 200-day moving averages of $1.33 and $2.27, respectively.
• Analyst sentiment is mixed: four analysts rate UWM a Buy, eight Hold and two Sell, producing a consensus Hold rating and a $3.76 target price. Recent actions included Barclays cutting its target to $2.00 and Citigroup upgrading the stock to Outperform.
• UWM’s latest quarterly results were weak, with an adjusted loss of $0.23 per share versus expectations for $0.07 in earnings, despite revenue of $888 million exceeding estimates. The company also has substantial leverage, with a debt-to-equity ratio of 6.05.

Shares of UWM Holdings Corporation (NYSE:UWMC - Get Free Report) traded up 10.4% during trading on Thursday. The stock traded as high as $1.10 and last traded at $1.1150. Approximately 9,150,321 shares were traded during trading, a decline of 50% from the average session volume of 18,328,352 shares. The stock had previously closed at $1.01.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on UWMC shares. Barclays reduced their price target on shares of UWM from $4.00 to $2.00 and set an "overweight" rating for the company in a research note on Friday, August 7th. Wall Street Zen downgraded UWM from a "hold" rating to a "sell" rating in a research note on Saturday, August 15th. Citigroup raised shares of UWM to an "outperform" rating in a research report on Wednesday, July 29th. Morgan Stanley set a $1.50 price objective on shares of UWM in a research note on Monday. Finally, Weiss Ratings lowered shares of UWM from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, August 11th. Four equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $3.76.

UWM Stock Up 13.4%

The company has a 50-day moving average of $1.33 and a two-hundred day moving average of $2.27. The company has a debt-to-equity ratio of 6.05, a current ratio of 1.64 and a quick ratio of 1.64. The company has a market capitalization of $1.84 billion, a PE ratio of -14.19, a P/E/G ratio of 1.84 and a beta of 1.82.

UWM (NYSE:UWMC - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.23) EPS for the quarter, missing analysts' consensus estimates of $0.07 by ($0.30). UWM had a negative return on equity of 6.20% and a negative net margin of 1.04%. The company had revenue of $888.00 million during the quarter, compared to analysts' expectations of $727.46 million. Sell-side analysts anticipate that UWM Holdings Corporation will post -0.08 earnings per share for the current fiscal year.

Institutional Investors Weigh In On UWM

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Taylor & Morgan Wealth Management LLC boosted its stake in shares of UWM by 59.8% in the third quarter. Taylor & Morgan Wealth Management LLC now owns 58,159 shares of the company's stock worth $69,000 after acquiring an additional 21,768 shares during the period. Wedmont Private Capital grew its position in shares of UWM by 270.4% during the third quarter. Wedmont Private Capital now owns 76,926 shares of the company's stock worth $84,000 after purchasing an additional 56,158 shares in the last quarter. Engineers Gate Manager LP purchased a new stake in shares of UWM during the second quarter worth about $1,473,000. Squarepoint Ops LLC raised its stake in UWM by 179.6% during the 2nd quarter. Squarepoint Ops LLC now owns 1,774,823 shares of the company's stock valued at $4,064,000 after purchasing an additional 1,140,136 shares during the period. Finally, Arizona State Retirement System raised its stake in UWM by 56.4% during the 2nd quarter. Arizona State Retirement System now owns 85,729 shares of the company's stock valued at $196,000 after purchasing an additional 30,907 shares during the period. 53.59% of the stock is owned by hedge funds and other institutional investors.

UWM Company Profile

UWM Holdings Corporation, operating as United Wholesale Mortgage (UWM), is a wholesale mortgage lender headquartered in Pontiac, Michigan. The company provides home loan products and related services through a network of independent mortgage brokers, rather than originating loans primarily through direct-to-consumer channels.

UWM offers a range of residential mortgage products, including conventional, government-backed, jumbo and other home financing options. Its services are supported by digital technology and processing tools designed to help mortgage brokers submit, manage and close loans efficiently.

The company traces its roots to 1986 and serves borrowers throughout the United States through its broker partners.

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