UWM (NYSE:UWMC) Reaches New 52-Week Low After Insider Selling

UWM Holdings Corporation (NYSE:UWMC - Get Free Report)'s stock price reached a new 52-week low on Wednesday following insider selling activity. The company traded as low as $3.80 and last traded at $3.86, with a volume of 810583 shares. The stock had previously closed at $3.84.

Specifically, CEO Ishbia Mat sold 400,036 shares of the stock in a transaction on Tuesday, June 17th. The stock was sold at an average price of $3.99, for a total transaction of $1,596,143.64. Following the transaction, the chief executive officer now owns 4,099,964 shares in the company, valued at $16,358,856.36. This trade represents a 8.89% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on UWMC. Keefe, Bruyette & Woods cut their price target on UWM from $7.50 to $6.50 and set an "outperform" rating on the stock in a research note on Wednesday, May 7th. UBS Group upgraded UWM from a "sell" rating to a "neutral" rating and lowered their target price for the stock from $4.75 to $4.50 in a report on Wednesday, April 16th. Wedbush reiterated a "neutral" rating and issued a $6.50 target price on shares of UWM in a report on Monday, March 3rd. Finally, The Goldman Sachs Group decreased their price objective on UWM from $7.00 to $6.00 and set a "neutral" rating for the company in a report on Wednesday, May 7th. Five research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company's stock. According to data from MarketBeat, UWM presently has a consensus rating of "Hold" and a consensus target price of $6.86.

UWM Price Performance

The firm has a market capitalization of $6.47 billion, a P/E ratio of -31.12 and a beta of 1.70. 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 business has a 50 day simple moving average of $4.29 and a two-hundred day simple moving average of $5.36.

UWM (NYSE:UWMC - Get Free Report) last announced its quarterly earnings data on Tuesday, May 6th. The company reported ($0.23) EPS for the quarter, missing the consensus estimate of $0.06 by ($0.29). The firm had revenue of $613.37 million for the quarter, compared to the consensus estimate of $558.80 million. UWM had a negative net margin of 0.36% and a negative return on equity of 3.86%. On average, sell-side analysts expect that UWM Holdings Corporation will post 0.2 EPS for the current fiscal year.

UWM Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 10th. Stockholders of record on Wednesday, June 18th will be given a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 9.89%. The ex-dividend date of this dividend is Wednesday, June 18th. UWM's dividend payout ratio is currently -307.69%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions 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. KLP Kapitalforvaltning AS bought a new stake in shares of UWM in the 4th quarter worth $121,000. 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. Mercer Global Advisors Inc. ADV increased its holdings in shares of UWM by 25.9% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 30,014 shares of the company's stock worth $176,000 after purchasing an additional 6,181 shares in the last quarter. Finally, Sanctuary Advisors LLC bought a new stake in shares of UWM in the 4th quarter worth $77,000. Institutional investors own 53.59% of the company's stock.

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.