UWM (NYSE:UWMC) Shares Gap Up Following Earnings Beat

Key Points

• UWM beat quarterly expectations: EPS was $0.10 versus the $0.04 consensus, while revenue of $811.09 million exceeded forecasts of $690.29 million.
• Shares jumped from a prior close of $1.59 to open at $1.80, and were last trading at $1.825.
• Analyst sentiment remains mostly cautious: the consensus rating is “Hold,” with a $2.76 average price target; UWM also reported a negative net margin and return on equity.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $1.59, but opened at $1.80. UWM shares last traded at $1.8250, with a volume of 3,958,046 shares changing hands.

The company reported $0.10 EPS for the quarter, topping analysts' consensus estimates of $0.04 by $0.06. UWM had a negative net margin of 1.04% and a negative return on equity of 6.20%. The business had revenue of $811.09 million for the quarter, compared to analysts' expectations of $690.29 million.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on UWMC. Weiss Ratings lowered shares of UWM from a "sell (d+)" rating to a "sell (d)" rating in a research note on Tuesday, August 11th. Compass Point lowered UWM from a "buy" rating to a "neutral" rating and set a $1.50 price target for the company. in a research note on Tuesday, October 27th. Barclays reduced their price target on UWM from $4.00 to $2.00 and set an "overweight" rating for the company in a report on Friday, August 7th. Keefe, Bruyette & Woods downgraded UWM from an "outperform" rating to a "market perform" rating and set a $1.50 price target on the stock. in a research report on Wednesday, October 7th. Finally, Stephens dropped their price objective on UWM from $3.00 to $2.00 and set an "equal weight" rating on the stock in a report on Friday, August 7th. Four investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $2.76.

Institutional Trading of UWM

A number of institutional investors and hedge funds have recently modified their holdings of UWMC. 180 Wealth Advisors LLC lifted its stake in UWM by 108.3% in the 3rd quarter. 180 Wealth Advisors LLC now owns 1,005,130 shares of the company's stock worth $1,186,000 after purchasing an additional 522,609 shares in the last quarter. Signature Equity Partners LLC increased its holdings in shares of UWM by 9.8% in the third quarter. Signature Equity Partners LLC now owns 1,328,488 shares of the company's stock valued at $1,568,000 after purchasing an additional 118,659 shares during the last quarter. Vise Technologies Inc. acquired a new stake in shares of UWM in the third quarter valued at approximately $188,000. VIRGINIA RETIREMENT SYSTEMS ET Al lifted its position in UWM by 125.0% during the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 29,700 shares of the company's stock worth $35,000 after buying an additional 16,500 shares in the last quarter. Finally, Signaturefd LLC lifted its position in UWM by 1,162.9% during the third quarter. Signaturefd LLC now owns 179,467 shares of the company's stock worth $212,000 after buying an additional 165,256 shares in the last quarter. Hedge funds and other institutional investors own 53.59% of the company's stock.

UWM Price Performance

The stock has a 50 day simple moving average of $1.30 and a two-hundred day simple moving average of $2.77. The company has a market cap of $2.92 billion, a price-to-earnings ratio of -22.76 and a beta of 1.82. The company has a debt-to-equity ratio of 6.05, a current ratio of 1.64 and a quick ratio of 1.64.

UWM Company Profile

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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