UWM (NYSE:UWMC) Shares Down 3.8% on Analyst Downgrade

Key Points

• UWM Holdings Corporation's stock fell by 3.8% following a downgrade by Morgan Stanley from an overweight to an equal weight rating, with a target price set at $6.50.
• Other analysts, including Keefe, Bruyette & Woods and Goldman Sachs, have also lowered their ratings and targets for UWM, indicating a consensus rating of "Hold" and an average target price of $6.18.
• The company's CEO recently sold over 596,000 shares, representing an 8.17% reduction in his ownership position, highlighting possible concerns regarding the company's future performance.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report)'s stock price dropped 3.8% on Monday after Morgan Stanley downgraded the stock from an overweight rating to an equal weight rating. Morgan Stanley now has a $6.50 price target on the stock. UWM traded as low as $5.89 and last traded at $6.01. Approximately 2,340,265 shares traded hands during trading, a decline of 62% from the average daily volume of 6,168,477 shares. The stock had previously closed at $6.24.

Other equities analysts have also issued research reports about the stock. Keefe, Bruyette & Woods lowered shares of UWM from an "outperform" rating to a "market perform" rating and dropped their target price for the stock from $6.50 to $4.50 in a research report on Thursday, July 10th. The Goldman Sachs Group cut their price objective on shares of UWM from $6.00 to $5.25 and set a "neutral" rating on the stock in a research report on Wednesday, July 2nd. Barclays upgraded shares of UWM from an "equal weight" rating to an "overweight" rating and set a $6.00 price objective on the stock in a research report on Tuesday, July 8th. BTIG Research restated a "buy" rating and issued a $10.00 price target on shares of UWM in a report on Monday, September 22nd. Finally, Wall Street Zen upgraded shares of UWM from a "strong sell" rating to a "hold" rating in a report on Saturday, August 9th. Two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $6.18.

Insider Activity at UWM

In related news, CEO Ishbia Mat sold 596,356 shares of the stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $6.84, for a total value of $4,079,075.04. Following the transaction, the chief executive officer owned 6,705,072 shares in the company, valued at approximately $45,862,692.48. This represents a 8.17% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Over the last ninety days, insiders have sold 14,982,880 shares of company stock valued at $79,136,161. Company insiders own 94.11% of the company's stock.

Hedge Funds Weigh In On UWM

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Balyasny Asset Management L.P. grew its stake in shares of UWM by 116.6% during the 2nd quarter. Balyasny Asset Management L.P. now owns 5,991,072 shares of the company's stock worth $24,803,000 after purchasing an additional 3,224,806 shares during the period. 683 Capital Management LLC acquired a new stake in shares of UWM during the 2nd quarter worth approximately $19,872,000. Bank of America Corp DE grew its stake in shares of UWM by 93.8% during the 2nd quarter. Bank of America Corp DE now owns 3,758,600 shares of the company's stock worth $15,561,000 after purchasing an additional 1,819,129 shares during the period. AQR Capital Management LLC grew its stake in shares of UWM by 1,144.7% during the 1st quarter. AQR Capital Management LLC now owns 2,496,805 shares of the company's stock worth $13,633,000 after purchasing an additional 2,296,205 shares during the period. Finally, Geode Capital Management LLC grew its stake in shares of UWM by 47.5% during the 2nd quarter. Geode Capital Management LLC now owns 2,414,282 shares of the company's stock worth $9,997,000 after purchasing an additional 777,264 shares during the period. Institutional investors and hedge funds own 53.59% of the company's stock.

UWM Stock Down 3.8%

The business's 50 day moving average price is $5.49 and its 200 day moving average price is $4.88. 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 has a market cap of $9.60 billion, a price-to-earnings ratio of -120.70 and a beta of 1.75.

UWM (NYSE:UWMC - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported $0.16 earnings per share for the quarter, beating analysts' consensus estimates of $0.06 by $0.10. The company had revenue of $758.70 million for the quarter, compared to analyst estimates of $621.60 million. UWM had a negative return on equity of 5.56% and a net margin of 0.48%. On average, equities analysts forecast that UWM Holdings Corporation will post 0.2 EPS for the current year.

UWM Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 9th. Investors of record on Thursday, September 18th will be given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 6.7%. The ex-dividend date of this dividend is Thursday, September 18th. UWM's dividend payout ratio (DPR) is presently -800.00%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.