UWM (NYSE:UWMC) Stock Crosses Below 50-Day Moving Average - Should You Sell?

Key Points

• UWM shares fell below their 50-day moving average, trading as low as $1.26 and last changing hands at $1.275, compared with a 50-day average of $1.30.
• Analysts have a consensus “Hold” rating and an average price target of $2.45; 4 rate the stock Buy, 10 Hold, and 1 Sell.
• UWM’s latest quarterly results beat estimates, with earnings of $0.10 per share versus $0.04 expected and revenue of $811.09 million versus $690.29 million expected.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report)'s share price crossed below its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $1.30 and traded as low as $1.26. UWM shares last traded at $1.2750, with a volume of 5,394,808 shares changing hands.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. Zacks Research upgraded shares of UWM from a "strong sell" rating to a "hold" rating in a research report on Tuesday, October 20th. Keefe, Bruyette & Woods cut shares of UWM from an "outperform" rating to a "market perform" rating and set a $1.50 price target on the stock. in a research note on Wednesday, October 7th. Barclays cut their price target on shares of UWM from $4.00 to $2.00 and set an "overweight" rating for the company in a report on Friday, August 7th. Citizens Jmp upgraded shares of UWM from a "market perform" rating to an "outperform" rating and set a $3.00 price objective for the company in a research note on Wednesday, July 29th. Finally, BTIG Research reissued a "neutral" rating on shares of UWM in a report on Friday, October 23rd. Four equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, UWM has a consensus rating of "Hold" and an average target price of $2.45.

UWM Stock Performance

The firm has a fifty day moving average of $1.30 and a 200-day moving average of $2.62. The stock has a market capitalization of $2.05 billion, a price-to-earnings ratio of 63.75, a PEG ratio of 4.86 and a beta of 1.82. The company has a quick ratio of 1.64, a current ratio of 1.82 and a debt-to-equity ratio of 4.02.

UWM (NYSE:UWMC - Get Free Report) last posted its 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. UWM had a return on equity of 4.29% and a net margin of 0.55%. The company had revenue of $811.09 million for the quarter, compared to analyst estimates of $690.29 million. As a group, sell-side analysts anticipate that UWM Holdings Corporation will post 0.04 EPS for the current year.

Institutional Investors Weigh In On UWM

A number of large investors have recently added to or reduced their stakes in the business. Meeder Advisory Services Inc. purchased a new position in UWM during the 2nd quarter valued at about $25,000. R Squared Ltd lifted its holdings in shares of UWM by 43.2% in the third quarter. R Squared Ltd now owns 22,199 shares of the company's stock valued at $26,000 after purchasing an additional 6,699 shares in the last quarter. Secure Asset Management LLC acquired a new stake in shares of UWM in the second quarter valued at approximately $30,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of UWM in the second quarter valued at approximately $30,000. Finally, Allspring Global Investments Holdings LLC acquired a new stake in shares of UWM in the third quarter valued at approximately $35,000. 53.59% of the stock is owned by institutional investors and hedge funds.

About UWM

UWM Holdings Corporation operates United Wholesale Mortgage, a mortgage lender that works through independent mortgage brokers rather than originating loans directly for consumers. The company provides residential mortgage products for home purchases and refinancings, along with technology and operational support to help brokers guide borrowers through the lending process. Its offerings include conventional, government-backed and jumbo home loans. UWM serves brokers and borrowers across the United States, using its wholesale model to connect mortgage professionals with loan processing, underwriting and closing services.

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