UWM (NYSE:UWMC) Posts Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• UWM reported earnings of $0.16 EPS for the quarter, beating analysts' estimates of $0.06 EPS by $0.10, with revenues also surpassing expectations at $758.70 million.
• The company declared a quarterly dividend of $0.10 per share, with a dividend yield of 8.8%, despite a negative dividend payout ratio of -307.69%.
• Various analysts have changed their ratings on UWM stock, resulting in a consensus rating of "Hold" and an average price target of $5.54.

UWM (NYSE:UWMC - Get Free Report) released its earnings results on Thursday. The company reported $0.16 EPS for the quarter, beating the consensus estimate of $0.06 by $0.10, Zacks reports. The firm had revenue of $758.70 million during the quarter, compared to analysts' expectations of $621.60 million. UWM had a net margin of 0.48% and a negative return on equity of 5.56%.

UWM Price Performance

Shares of UWMC stock traded up $0.36 during mid-day trading on Tuesday, reaching $4.90. The company's stock had a trading volume of 7,051,489 shares, compared to its average volume of 5,500,211. UWM has a 1-year low of $3.80 and a 1-year high of $9.74. The company has a market cap of $7.83 billion, a P/E ratio of -97.70 and a beta of 1.70. The company has a debt-to-equity ratio of 1.85, a quick ratio of 1.55 and a current ratio of 1.55. The firm's 50-day moving average is $4.23 and its two-hundred day moving average is $4.93.

UWM Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 9th. Stockholders of record on Thursday, September 18th will be paid a $0.10 dividend. The ex-dividend date is Thursday, September 18th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 8.2%. UWM's dividend payout ratio is currently -800.00%.

Insider Activity

In other UWM news, CEO Ishbia Mat sold 400,036 shares of the company's stock in a transaction on Monday, July 14th. The stock was sold at an average price of $4.22, for a total value of $1,688,151.92. Following the sale, the chief executive officer directly owned 1,499,352 shares in the company, valued at $6,327,265.44. This represents a 21.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. In the last ninety days, insiders have sold 9,200,828 shares of company stock valued at $38,935,504. Corporate insiders own 94.11% of the company's stock.

Institutional Trading of UWM

Large investors have recently bought and sold shares of the stock. Focus Partners Wealth acquired a new stake in shares of UWM during the 1st quarter worth about $55,000. Dynamic Technology Lab Private Ltd acquired a new stake in shares of UWM during the 1st quarter worth about $92,000. Cetera Investment Advisers increased its position in shares of UWM by 20.5% during the 2nd quarter. Cetera Investment Advisers now owns 112,961 shares of the company's stock worth $468,000 after purchasing an additional 19,239 shares in the last quarter. Rhumbline Advisers increased its position in shares of UWM by 18.5% during the 2nd quarter. Rhumbline Advisers now owns 115,501 shares of the company's stock worth $478,000 after purchasing an additional 18,034 shares in the last quarter. Finally, Legal & General Group Plc increased its position in shares of UWM by 65.9% during the 2nd quarter. Legal & General Group Plc now owns 180,164 shares of the company's stock worth $746,000 after purchasing an additional 71,555 shares in the last quarter. 53.59% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several research firms recently commented on UWMC. The Goldman Sachs Group cut their target price on shares of UWM from $6.00 to $5.25 and set a "neutral" rating for the company in a research note on Wednesday, July 2nd. Wall Street Zen upgraded shares of UWM from a "strong sell" rating to a "hold" rating in a research note on Saturday. Keefe, Bruyette & Woods cut shares of UWM from an "outperform" rating to a "market perform" rating and cut their target price for the company from $6.50 to $4.50 in a research note on Thursday, July 10th. UBS Group upgraded shares of UWM from a "sell" rating to a "neutral" rating and cut their target price for the company 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 target price for the company in a research note on Tuesday, July 8th. Six research analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $5.54.

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.