UWM Holdings Corporation (NYSE:UWMC) Short Interest Update

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 increase in short interest during the month of July. As of July 15th, there was short interest totaling 28,840,000 shares, anincreaseof32,340.9% from the June 30th total of 88,900 shares. Based on an average trading volume of 6,200,000 shares, the days-to-cover ratio is presently 4.7 days. Based on an average trading volume of 6,200,000 shares, the days-to-cover ratio is presently 4.7 days.

Analyst Upgrades and Downgrades

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

Insider Activity at UWM

In other news, CEO Ishbia Mat sold 400,036 shares of the company's stock in a transaction that occurred on Monday, July 14th. The shares were sold at an average price of $4.22, for a total value of $1,688,151.92. Following the transaction, the chief executive officer directly owned 1,499,352 shares in the company, valued at approximately $6,327,265.44. This represents a 21.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In the last quarter, insiders have sold 8,000,720 shares of company stock valued at $33,571,021. Corporate insiders own 94.11% of the company's stock.

Institutional Trading of UWM

Hedge funds and other institutional investors have recently made changes to their positions in the stock. GAMMA Investing LLC grew its holdings in shares of UWM by 101.8% during the first quarter. GAMMA Investing LLC now owns 5,863 shares of the company's stock worth $32,000 after buying an additional 2,958 shares in the last quarter. Sherbrooke Park Advisers LLC grew its holdings in shares of UWM by 17.4% during the fourth quarter. Sherbrooke Park Advisers LLC now owns 20,038 shares of the company's stock worth $118,000 after buying an additional 2,975 shares in the last quarter. Mariner LLC grew its holdings in shares of UWM by 5.1% during the fourth quarter. Mariner LLC now owns 64,455 shares of the company's stock worth $378,000 after buying an additional 3,126 shares in the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of UWM by 13.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 29,477 shares of the company's stock worth $174,000 after buying an additional 3,524 shares in the last quarter. Finally, Bleakley Financial Group LLC grew its holdings in UWM by 10.9% in the first quarter. Bleakley Financial Group LLC now owns 44,059 shares of the company's stock valued at $241,000 after purchasing an additional 4,336 shares during the period. Institutional investors and hedge funds own 53.59% of the company's stock.

UWM Stock Performance

NYSE:UWMC traded down $0.02 during trading hours on Tuesday, reaching $4.27. 2,544,692 shares of the company's stock were exchanged, compared to its average volume of 5,304,293. UWM has a 1-year low of $3.80 and a 1-year high of $9.74. The firm has a market capitalization of $6.82 billion, a price-to-earnings ratio of -32.81 and a beta of 1.70. The company has a quick ratio of 1.50, a current ratio of 1.50 and a debt-to-equity ratio of 1.87. The company has a 50-day moving average of $4.20 and a 200 day moving average of $4.99.

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

UWM Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 10th. Investors of record on Wednesday, June 18th were paid a $0.10 dividend. The ex-dividend date was Wednesday, June 18th. This represents a $0.40 annualized dividend and a dividend yield of 9.4%. UWM's dividend payout ratio (DPR) is -307.69%.

About UWM

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.