UWM (NYSE:UWMC) Shares Down 4.3% - Time to Sell?

Key Points

• UWM shares fell 4.3% to about $1.01, with trading volume down 91% from the average session. The stock is well below its 50-day and 200-day moving averages of $1.33 and $2.24, respectively.
• Analyst sentiment is mixed but leans cautious: UWM has an average “Hold” rating, with four Buys, eight Holds and two Sells. The consensus price target is $3.76, although several analysts recently cut targets and Zacks downgraded the stock to “strong sell.”
• UWM missed quarterly earnings expectations, reporting a loss of $0.23 per share versus the expected $0.07 profit, despite revenue of $888 million exceeding forecasts. The company posted negative net margins and return on equity, while institutional investors own 53.59% of its shares.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report) traded down 4.3% during trading on Monday. The company traded as low as $0.9999 and last traded at $1.0050. Approximately 1,659,142 shares traded hands during trading, a decline of 91% from the average session volume of 18,257,762 shares. The stock had previously closed at $1.05.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the stock. Weiss Ratings downgraded shares of UWM from a "sell (d+)" rating to a "sell (d)" rating in a report on Tuesday, August 11th. Stephens decreased their price target on shares of UWM from $3.00 to $2.00 and set an "equal weight" rating for the company in a research note on Friday, August 7th. Citizens Jmp raised shares of UWM from a "market perform" rating to an "outperform" rating and set a $3.00 price target on the stock in a report on Wednesday, July 29th. Zacks Research downgraded UWM from a "hold" rating to a "strong sell" rating in a research note on Wednesday, August 5th. Finally, Barclays dropped their price objective on UWM from $4.00 to $2.00 and set an "overweight" rating on the stock in a research note on Friday, August 7th. Four analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, UWM currently has an average rating of "Hold" and a consensus target price of $3.76.

UWM Stock Performance

The company's fifty day simple moving average is $1.33 and its 200 day simple moving average is $2.24. The stock has a market capitalization of $1.66 billion, a P/E ratio of -13.19 and a beta of 1.82. The company has a current ratio of 1.64, a quick 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 Thursday, August 6th. The company reported ($0.23) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.30). The business had revenue of $888.00 million during the quarter, compared to analysts' expectations of $727.46 million. UWM had a negative net margin of 1.04% and a negative return on equity of 6.20%. As a group, sell-side analysts forecast that UWM Holdings Corporation will post -0.08 earnings per share for the current fiscal year.

Hedge Funds Weigh In On UWM

A number of hedge funds have recently modified their holdings of UWMC. Bank of America Corp DE raised 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 valued at $25,231,000 after acquiring an additional 3,905,286 shares in the last quarter. Integrated Investment Consultants LLC increased its position in shares of UWM by 0.5% during the first quarter. Integrated Investment Consultants LLC now owns 5,371,664 shares of the company's stock valued at $19,445,000 after acquiring an additional 26,679 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in shares of UWM in the second quarter worth $4,593,000. Squarepoint Ops LLC raised its position 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 buying an additional 1,140,136 shares during the last quarter. Finally, Signature Equity Partners LLC raised its stake in UWM by 20.5% during the 1st quarter. Signature Equity Partners LLC now owns 925,864 shares of the company's stock valued at $3,352,000 after buying an additional 157,262 shares during the last quarter. Hedge funds and other institutional investors own 53.59% of the company's stock.

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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