UWM (NYSE:UWMC) Shares Down 10.1% - Time to Sell?

Key Points

• UWM shares fell 10.1% in Friday’s mid-day trading, to $1.465, while trading volume was about 92% below its average.
• Analysts’ consensus rating is Hold, with an average price target of $2.45; ratings include four Buys, ten Holds and one Sell.
• UWM’s latest quarterly results beat estimates: earnings were $0.10 per share versus $0.04 expected, and revenue was $811.09 million versus $690.29 million forecast.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report)'s share price was down 10.1% during mid-day trading on Friday. The company traded as low as $1.5050 and last traded at $1.4650. 1,523,802 shares changed hands during mid-day trading, a decline of 92% from the average daily volume of 18,057,611 shares. The stock had previously closed at $1.63.

Analysts Set New Price Targets

A number of equities analysts have recently commented on UWMC shares. Zacks Research upgraded shares of UWM from a "strong sell" rating to a "hold" rating in a research report on Tuesday, October 20th. Citizens Jmp raised shares of UWM from a "market perform" rating to an "outperform" rating and set a $3.00 target price on the stock in a report on Wednesday, July 29th. Citigroup reiterated a "market outperform" rating on shares of UWM in a research note on Monday, October 26th. Keefe, Bruyette & Woods cut shares of UWM from an "outperform" rating to a "market perform" rating and set a $1.50 target price on the stock. in a research note on Wednesday, October 7th. Finally, Stephens cut their price target on shares of UWM from $3.00 to $2.00 and set an "equal weight" rating for the company in a report on Friday, August 7th. Four investment 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 data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $2.45.

UWM Price Performance

The firm has a market capitalization of $2.48 billion, a P/E ratio of 77.25, a price-to-earnings-growth ratio of 3.45 and a beta of 1.82. The company has a debt-to-equity ratio of 6.05, a quick ratio of 1.64 and a current ratio of 1.64. The business has a 50 day simple moving average of $1.31 and a two-hundred day simple moving average of $2.73.

UWM (NYSE:UWMC - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The company reported $0.10 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.06. The firm had revenue of $811.09 million for the quarter, compared to analysts' expectations of $690.29 million. UWM had a return on equity of 4.24% and a net margin of 0.55%. On average, sell-side analysts expect that UWM Holdings Corporation will post 0.07 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of UWMC. Bank of America Corp DE increased its stake in UWM by 127.4% in the first quarter. Bank of America Corp DE now owns 6,969,809 shares of the company's stock valued at $25,231,000 after acquiring an additional 3,905,286 shares during the last quarter. Integrated Investment Consultants LLC lifted its stake in UWM by 0.5% during the first quarter. Integrated Investment Consultants LLC now owns 5,371,664 shares of the company's stock worth $19,445,000 after purchasing an additional 26,679 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in UWM during the second quarter worth about $4,593,000. Squarepoint Ops LLC lifted its stake in UWM by 179.6% during the second 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 during the last quarter. Finally, Signature Equity Partners LLC boosted its holdings in shares of UWM by 9.8% in the 3rd quarter. Signature Equity Partners LLC now owns 1,328,488 shares of the company's stock worth $1,568,000 after purchasing an additional 118,659 shares in the last quarter. 53.59% of the stock is currently owned by institutional investors.

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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