UWM (NYSE:UWMC) Issues Earnings Results, Misses Estimates By $0.30 EPS

Key Points

• UWM reported a quarterly loss of $0.23 per share, missing the consensus estimate of $0.07 by $0.30. The company posted a 1.92% net margin and 19.01% return on equity.
• Shares fell 6.5% to $1.82, near the company’s 12-month low of $1.72. UWM has a $2.92 billion market capitalization and a debt-to-equity ratio of 3.13.
• Analyst sentiment remains mixed, with an average rating of “Hold” and a $4.65 price target; several firms maintained or upgraded bullish ratings, while Weiss Ratings downgraded the stock to “Sell.”

UWM (NYSE:UWMC - Get Free Report) issued its quarterly earnings data on Wednesday. The company reported ($0.23) EPS for the quarter, missing the consensus estimate of $0.07 by ($0.30), Zacks reports. UWM had a net margin of 1.92% and a return on equity of 19.01%.

UWM Trading Down 6.5%

Shares of UWMC stock traded down $0.13 during trading hours on Wednesday, hitting $1.82. 19,475,171 shares of the company's stock traded hands, compared to its average volume of 15,638,250. The stock's 50 day simple moving average is $2.23 and its 200 day simple moving average is $3.46. The stock has a market cap of $2.92 billion, a PE ratio of 5.74 and a beta of 1.78. UWM has a 12 month low of $1.72 and a 12 month high of $7.14. The company has a quick ratio of 1.52, a current ratio of 1.52 and a debt-to-equity ratio of 3.13.

Insider Buying and Selling at UWM

In related news, CEO Ishbia Mat sold 1,003,333 shares of the business's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $3.39, for a total value of $3,401,298.87. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 80.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On UWM

A number of hedge funds have recently made changes to their positions in UWMC. Weiss Asset Management LP acquired a new position in shares of UWM in the 4th quarter worth approximately $85,000. Harvest Fund Management Co. Ltd acquired a new stake in shares of UWM during the third quarter worth $62,000. Integrated Wealth Concepts LLC acquired a new stake in shares of UWM during the fourth quarter worth $59,000. Elevation Point Wealth Partners LLC bought a new position in UWM during the fourth quarter worth $58,000. Finally, Stifel Financial Corp bought a new position in UWM during the fourth quarter worth $55,000. 53.59% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Barclays lowered their price target on shares of UWM from $5.00 to $4.00 and set an "overweight" rating for the company in a report on Tuesday, July 7th. BTIG Research reissued a "buy" rating and set a $4.00 price objective on shares of UWM in a report on Wednesday, June 24th. Keefe, Bruyette & Woods upgraded UWM from a "market perform" rating to an "outperform" rating and reduced their price objective for the stock from $4.50 to $3.75 in a research report on Thursday, June 25th. Weiss Ratings cut UWM from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, June 15th. Finally, Citigroup upgraded UWM to an "outperform" rating in a research report on Wednesday, July 29th. Six investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $4.65.

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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