UWM (NYSE:UWMC) Stock Price Up 10.9% - Time to Buy?

Key Points

• UWM shares rose 10.9% to about $1.28, although trading volume was 86% below the stock’s average daily volume.
• Analyst sentiment remains mixed: the consensus rating is “Hold”, with a $3.76 target price; recent firms have both upgraded and downgraded the stock.
• Fundamentals remain challenging, including a quarterly EPS loss of $0.23 versus an expected $0.07 profit, negative margins and return on equity, and a high debt-to-equity ratio of 6.05.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report)'s stock price rose 10.9% during trading on Friday. The stock traded as high as $1.26 and last traded at $1.2750. 2,486,472 shares changed hands during trading, a decline of 86% from the average daily volume of 18,117,131 shares. The stock had previously closed at $1.15.

Analysts Set New Price Targets

A number of research firms have recently weighed in on UWMC. BTIG Research cut UWM from a "buy" rating to a "neutral" rating in a report on Monday, October 12th. Citigroup raised UWM to an "outperform" rating in a research note on Wednesday, July 29th. Keefe, Bruyette & Woods downgraded UWM from an "outperform" rating to a "market perform" rating and set a $1.50 price target for the company. in a research report on Wednesday, October 7th. Wall Street Zen downgraded UWM from a "hold" rating to a "sell" rating in a research note on Saturday, August 15th. Finally, Citizens Jmp raised 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. 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. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $3.76.

UWM Stock Performance

The company has a market cap of $2.00 billion, a price-to-earnings ratio of -15.56 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. The stock has a 50 day moving average price of $1.29 and a two-hundred day moving average price of $2.17.

UWM (NYSE:UWMC - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.23) earnings per share (EPS) for the quarter, missing the consensus estimate 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 for the quarter, compared to the consensus estimate of $727.46 million. Analysts predict that UWM Holdings Corporation will post -0.06 EPS for the current year.

Institutional Investors Weigh In On UWM

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank of America Corp DE raised its holdings in UWM by 127.4% during the 1st 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 period. Integrated Investment Consultants LLC increased its stake 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 buying an additional 26,679 shares during the period. Bank of New York Mellon Corp bought a new position in shares of UWM in the 2nd quarter worth approximately $4,593,000. Squarepoint Ops LLC grew its stake in shares of 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 position in UWM by 20.5% in the 1st quarter. Signature Equity Partners LLC now owns 925,864 shares of the company's stock worth $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.

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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