Short Interest in UWM Holdings Corporation (NYSE:UWMC) Increases By 32,340.9%

Key Points

• Short interest in UWM Holdings Corporation increased drastically by 32,340.9% in July, reaching a total of 28,840,000 shares.
• The company declared a quarterly dividend of $0.10, providing an annualized yield of 9.6%, despite a current dividend payout ratio of -307.69%.
• Recent analyst ratings show mixed outlooks, with some firms reducing their price targets, while the overall consensus rating on UWM stock remains a "Hold" with an average target price of $6.18.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report) was the recipient of a large growth in short interest in the month of July. As of July 15th, there was short interest totaling 28,840,000 shares, agrowthof32,340.9% from the June 30th total of 88,900 shares. Based on an average daily trading volume, of 6,200,000 shares, the short-interest ratio is currently 4.7 days. Based on an average daily trading volume, of 6,200,000 shares, the short-interest ratio is currently 4.7 days.

UWM Trading Up 4.1%

UWMC stock traded up $0.17 during trading on Friday, hitting $4.19. The company had a trading volume of 9,125,893 shares, compared to its average volume of 5,308,165. The business has a 50-day moving average of $4.20 and a 200-day moving average of $5.03. UWM has a one year low of $3.80 and a one year high of $9.74. The stock has a market cap of $6.69 billion, a PE ratio of -32.19 and a beta of 1.68. The company has a current ratio of 1.50, a quick ratio of 1.50 and a debt-to-equity ratio of 1.87.

UWM (NYSE:UWMC - Get Free Report) last posted its quarterly earnings results on Tuesday, May 6th. The company reported ($0.23) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.06 by ($0.29). UWM had a negative return on equity of 3.86% and a negative net margin of 0.36%. The business had revenue of $613.37 million for the quarter, compared to the consensus estimate of $558.80 million. Research analysts predict that UWM will post 0.2 earnings per share for the current fiscal year.

UWM Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, July 10th. Investors of record on Wednesday, June 18th were given a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 9.6%. The ex-dividend date of this dividend was Wednesday, June 18th. UWM's dividend payout ratio is presently -307.69%.

Wall Street Analysts Forecast Growth

UWMC has been the subject of several analyst reports. Keefe, Bruyette & Woods cut shares of UWM from an "outperform" rating to a "market perform" rating and decreased their target price for the company from $6.50 to $4.50 in a research note on Thursday, July 10th. UBS Group raised shares of UWM from a "sell" rating to a "neutral" rating and decreased their target price for the company from $4.75 to $4.50 in a research note on Wednesday, April 16th. The Goldman Sachs Group reduced their price objective on shares of UWM from $6.00 to $5.25 and set a "neutral" rating for the company in a research report on Wednesday, July 2nd. Finally, Barclays raised shares of UWM from an "equal weight" rating to an "overweight" rating and set a $6.00 price objective for the company in a research report on Tuesday, July 8th. Five research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $6.18.

Insider Buying and Selling

In other news, CEO Ishbia Mat sold 400,036 shares of UWM stock in a transaction that occurred on Wednesday, July 30th. The shares were sold at an average price of $4.10, for a total value of $1,640,147.60. Following the sale, the chief executive officer directly owned 898,920 shares in the company, valued at $3,685,572. This trade represents a 30.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In the last 90 days, insiders have sold 7,200,648 shares of company stock worth $30,194,717. Company insiders own 87.50% of the company's stock.

Institutional Investors Weigh In On UWM

A number of institutional investors and hedge funds have recently bought and sold shares of UWMC. Vanguard Group Inc. boosted its stake in UWM by 37.6% in the 4th quarter. Vanguard Group Inc. now owns 11,764,910 shares of the company's stock worth $69,060,000 after purchasing an additional 3,212,081 shares during the period. First Trust Advisors LP lifted its position in UWM by 886.9% in the 4th quarter. First Trust Advisors LP now owns 3,727,477 shares of the company's stock worth $21,880,000 after buying an additional 3,349,779 shares during the last quarter. AQR Capital Management LLC lifted its position in UWM by 1,144.7% in the first quarter. AQR Capital Management LLC now owns 2,496,805 shares of the company's stock valued at $13,633,000 after purchasing an additional 2,296,205 shares during the last quarter. Basswood Capital Management L.L.C. bought a new stake in UWM in the fourth quarter valued at approximately $6,602,000. Finally, Cubist Systematic Strategies LLC lifted its position in UWM by 81.5% in the first quarter. Cubist Systematic Strategies LLC now owns 979,578 shares of the company's stock valued at $5,348,000 after purchasing an additional 439,928 shares during the last quarter. 53.59% of the stock is owned by hedge funds and other institutional investors.

UWM Company Profile

UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.

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