UWM (NYSE:UWMC) Coverage Initiated by Analysts at Compass Point

Key Points

• Compass Point initiated coverage on UWM with a "buy" and an $8.50 price target—implying about a 118.9% upside—while the MarketBeat consensus target is $6.49 and analysts are split (3 Buys, 6 Holds, 1 Sell).
• UWM's recent quarter showed revenue beat ($945.3M vs. $759.1M expected) but missed on EPS ($0.08 vs. $0.09), with a net margin of 0.87% and a negative return on equity of 1.35%.
• Significant insider activity: CEO Ishbia sold 632,874 shares on Jan. 9, insiders sold ~19.8M shares (~$97.5M) in the last 90 days, yet insiders still own 94.11% of the company.

Equities researchers at Compass Point initiated coverage on shares of UWM (NYSE:UWMC - Get Free Report) in a note issued to investors on Tuesday. The firm set a "buy" rating and a $8.50 price target on the stock. Compass Point's price target would suggest a potential upside of 118.85% from the company's previous close.

Several other analysts have also recently weighed in on the stock. Morgan Stanley set a $6.00 price target on shares of UWM in a report on Tuesday, December 16th. Jefferies Financial Group set a $4.40 target price on shares of UWM in a research report on Wednesday, February 25th. Wall Street Zen upgraded UWM from a "strong sell" rating to a "hold" rating in a research report on Saturday, February 28th. Barclays decreased their price target on UWM from $7.00 to $6.00 and set an "overweight" rating on the stock in a research note on Thursday, February 26th. Finally, Weiss Ratings upgraded UWM from a "sell (d)" rating to a "hold (c-)" rating in a report on Thursday, February 26th. Three equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $6.49.

UWM Stock Performance

NYSE UWMC opened at $3.88 on Tuesday. The firm has a 50-day moving average of $4.93 and a 200-day moving average of $5.39. UWM has a 52-week low of $3.64 and a 52-week high of $7.14. The company has a debt-to-equity ratio of 2.64, a quick ratio of 1.52 and a current ratio of 1.52. The stock has a market cap of $6.21 billion, a PE ratio of 64.73 and a beta of 1.90.

UWM (NYSE:UWMC - Get Free Report) last posted its quarterly earnings data on Wednesday, February 25th. The company reported $0.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.01). The business had revenue of $945.25 million for the quarter, compared to analysts' expectations of $759.12 million. UWM had a negative return on equity of 1.35% and a net margin of 0.87%. On average, sell-side analysts anticipate that UWM will post 0.2 EPS for the current year.

Insider Activity at UWM

In other UWM news, CEO Ishbia Mat sold 632,874 shares of the stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $5.27, for a total transaction of $3,335,245.98. Following the transaction, the chief executive officer owned 3,149,753 shares in the company, valued at $16,599,198.31. This represents a 16.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders sold a total of 19,797,526 shares of company stock valued at $97,470,411 in the last 90 days. Insiders own 94.11% of the company's stock.

Hedge Funds Weigh In On UWM

Several institutional investors and hedge funds have recently modified their holdings of the business. Oak Thistle LLC acquired a new position in shares of UWM during the third quarter valued at $1,337,000. Vanguard Group Inc. raised its position in shares of UWM by 6.2% in the third quarter. Vanguard Group Inc. now owns 17,282,688 shares of the company's stock valued at $105,252,000 after purchasing an additional 1,010,907 shares during the period. Hsbc Holdings PLC bought a new position in shares of UWM in the 2nd quarter worth about $792,000. AGF Management Ltd. purchased a new stake in UWM during the second quarter worth about $3,072,000. Finally, 683 Capital Management LLC purchased a new stake in UWM during the second quarter worth about $19,872,000. 53.59% of the stock is currently owned by institutional investors and hedge funds.

UWM Company Profile

United Wholesale Mortgage NYSE: UWMC is a leading mortgage lender in the United States specializing in the wholesale channel. The company partners with independent mortgage brokers, community banks and credit unions to offer a full suite of residential mortgage products. Through its network of third-party originators, United Wholesale Mortgage underwrites, funds and closes loans, allowing its partners to focus on customer acquisition and service.

The company’s product offerings include conventional fixed- and adjustable-rate mortgages, Federal Housing Administration (FHA) loans, Veterans Affairs (VA) loans, U.S.

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