UWM (NYSE:UWMC) Shares Down 4.1% Following Insider Selling

Key Points

• UWM Holdings Corporation's shares fell by 4.1% after CEO Ishbia Mat sold over 596,000 shares at an average price of $5.69, reducing his ownership by approximately 10.37%.
• Analysts have mixed views on UWM, with upgrades and downgrades leading to an average rating of "Hold" and a price target of $6.32.
• The company declared a quarterly dividend of $0.10 per share, yielding 7.1%, amid a recent earnings report that surpassed expectations with a revenue of $758.7 million.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report)'s share price was down 4.1% during trading on Monday after an insider sold shares in the company. The company traded as low as $5.73 and last traded at $5.74. Approximately 2,704,108 shares changed hands during trading, a decline of 57% from the average daily volume of 6,282,722 shares. The stock had previously closed at $5.98.

Specifically, CEO Ishbia Mat sold 596,356 shares of the company's stock in a transaction dated Monday, October 6th. The shares were sold at an average price of $5.69, for a total transaction of $3,393,265.64. Following the completion of the sale, the chief executive officer owned 5,156,088 shares of the company's stock, valued at approximately $29,338,140.72. This represents a 10.37% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Ishbia Mat sold 596,356 shares of the firm's stock in a transaction that occurred on Friday, October 3rd. The stock was sold at an average price of $5.99, for a total transaction of $3,572,172.44. Following the completion of the transaction, the chief executive officer directly owned 5,752,444 shares in the company, valued at $34,457,139.56. This trade represents a 9.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, CEO Ishbia Mat sold 596,356 shares of the business's stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $6.22, for a total transaction of $3,709,334.32. Following the transaction, the chief executive officer directly owned 6,348,800 shares in the company, valued at $39,489,536. The trade was a 8.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink.

Analyst Ratings Changes

A number of equities analysts recently commented on UWMC shares. Wall Street Zen upgraded UWM from a "strong sell" rating to a "hold" rating in a research report on Saturday, August 9th. Morgan Stanley downgraded UWM from an "overweight" rating to an "equal weight" rating and raised their target price for the stock from $4.50 to $6.50 in a research note on Monday, September 29th. BTIG Research reiterated a "buy" rating and set a $10.00 price target on shares of UWM in a report on Monday, September 22nd. Barclays upped their price objective on shares of UWM from $6.00 to $7.00 and gave the company an "overweight" rating in a report on Monday. Finally, Keefe, Bruyette & Woods downgraded shares of UWM from an "outperform" rating to a "market perform" rating and reduced their target price for the stock from $6.50 to $4.50 in a research note on Thursday, July 10th. Two investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $6.32.

UWM Trading Down 6.4%

The stock has a market cap of $8.96 billion, a price-to-earnings ratio of -112.00 and a beta of 1.79. 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 company has a 50 day moving average of $5.65 and a 200-day moving average of $4.88.

UWM (NYSE:UWMC - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.10. The business had revenue of $758.70 million for 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%. On average, research analysts anticipate that UWM Holdings Corporation will post 0.2 earnings per share for the current year.

UWM Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 9th. Shareholders of record on Thursday, September 18th will be given a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a yield of 7.1%. The ex-dividend date of this dividend is Thursday, September 18th. UWM's dividend payout ratio (DPR) is presently -800.00%.

Institutional Investors Weigh In On UWM

Several hedge funds have recently modified their holdings of UWMC. Cambridge Investment Research Advisors Inc. increased its stake in shares of UWM by 15.3% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 408,182 shares of the company's stock worth $2,229,000 after acquiring an additional 54,160 shares during the period. Wealth Enhancement Advisory Services LLC grew its stake in shares of UWM by 112.5% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 118,720 shares of the company's stock worth $648,000 after purchasing an additional 62,862 shares during the period. Sequoia Financial Advisors LLC purchased a new position in shares of UWM in the 1st quarter valued at about $65,000. GAMMA Investing LLC boosted its holdings in UWM by 101.8% during the first quarter. GAMMA Investing LLC now owns 5,863 shares of the company's stock worth $32,000 after buying an additional 2,958 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its position in UWM by 42.3% during the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 25,845 shares of the company's stock worth $141,000 after buying an additional 7,687 shares during the period. 53.59% of the stock is owned by institutional investors and hedge funds.

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.