UWM Holdings Corporation (NYSE:UWMC) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• UWM Holdings Corporation has received an average recommendation of “Hold” from analysts, with five hold ratings and two buy ratings. The average 1-year target price is $6.18.
• The company reported a loss of ($0.23) earnings per share in its last quarter, missing the consensus estimate of $0.06.
• UWM recently announced a quarterly dividend of $0.10, translating to an annual yield of 9.56%, despite having a dividend payout ratio of -307.69%.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report) has received a consensus recommendation of "Hold" from the seven analysts that are presently covering the stock, Marketbeat reports. Five analysts have rated the stock with a hold rating and two have issued a buy rating on the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $6.18.

UWMC has been the subject of several research analyst reports. UBS Group upgraded UWM from a "sell" rating to a "neutral" rating and dropped their price objective for the stock from $4.75 to $4.50 in a report on Wednesday, April 16th. The Goldman Sachs Group dropped their price objective on UWM from $6.00 to $5.25 and set a "neutral" rating for the company in a report on Wednesday, July 2nd. Keefe, Bruyette & Woods cut UWM from an "outperform" rating to a "market perform" rating and dropped their price objective for the stock from $6.50 to $4.50 in a report on Thursday, July 10th. Finally, Barclays raised UWM from an "equal weight" rating to an "overweight" rating and set a $6.00 target price for the company in a research report on Tuesday, July 8th.

UWM Trading Down 1.8%

NYSE UWMC opened at $4.19 on Wednesday. UWM has a fifty-two week low of $3.80 and a fifty-two week high of $9.74. The company has a debt-to-equity ratio of 1.87, a quick ratio of 1.50 and a current ratio of 1.50. The stock has a 50 day simple moving average of $4.20 and a two-hundred day simple moving average of $5.05. The stock has a market cap of $6.69 billion, a P/E ratio of -32.19 and a beta of 1.68.

UWM (NYSE:UWMC - Get Free Report) last released its quarterly earnings data 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). 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 during the quarter, compared to analysts' expectations of $558.80 million. On average, analysts forecast that UWM will post 0.2 earnings per share for the current year.

UWM Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, July 10th. Stockholders of record on Wednesday, June 18th were given a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 9.56%. The ex-dividend date of this dividend was Wednesday, June 18th. UWM's dividend payout ratio is currently -307.69%.

Insider Activity

In other UWM news, CEO Ishbia Mat sold 400,036 shares of UWM stock in a transaction on Monday, July 14th. The stock was sold at an average price of $4.22, for a total transaction of $1,688,151.92. Following the completion of the transaction, the chief executive officer owned 1,499,352 shares in the company, valued at approximately $6,327,265.44. The trade was a 21.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Over the last three months, insiders sold 6,800,612 shares of company stock valued at $28,554,570. 94.11% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in UWMC. Vanguard Group Inc. increased its holdings in shares of 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 in the last quarter. Cambridge Investment Research Advisors Inc. increased its holdings in shares of UWM by 15.3% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 408,182 shares of the company's stock worth $2,229,000 after purchasing an additional 54,160 shares in the last quarter. Wealth Enhancement Advisory Services LLC increased its holdings in shares of UWM by 112.5% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 118,720 shares of the company's stock worth $648,000 after purchasing an additional 62,862 shares in the last quarter. KLP Kapitalforvaltning AS bought a new stake in shares of UWM in the 4th quarter worth $121,000. Finally, Wells Fargo & Company MN increased its holdings in shares of UWM by 9.9% in the 4th quarter. Wells Fargo & Company MN now owns 64,970 shares of the company's stock worth $381,000 after purchasing an additional 5,849 shares in the last quarter. Hedge funds and other institutional investors own 53.59% of the company's stock.

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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