UWM (NYSE:UWMC) Shares Gap Down After Earnings Miss

UWM Holdings Co. (NYSE:UWMC - Get Free Report)'s share price gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $4.77, but opened at $4.45. UWM shares last traded at $4.44, with a volume of 674,933 shares trading hands.

The company reported ($0.23) earnings per share for the quarter, missing the consensus estimate of $0.06 by ($0.29). The business had revenue of $613.37 million for the quarter, compared to analyst estimates of $558.80 million.

UWM Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 10th. Investors of record on Wednesday, June 18th will be given a dividend of $0.10 per share. The ex-dividend date is Wednesday, June 18th. This represents a $0.40 annualized dividend and a yield of 9.46%. UWM's payout ratio is 500.00%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the company. UBS Group raised UWM from a "sell" rating to a "neutral" rating and dropped their price objective for the company from $4.75 to $4.50 in a research note on Wednesday, April 16th. The Goldman Sachs Group cut their price target on shares of UWM from $7.00 to $6.00 and set a "neutral" rating on the stock in a report on Wednesday. Keefe, Bruyette & Woods lowered their price objective on shares of UWM from $7.50 to $6.50 and set an "outperform" rating for the company in a research note on Wednesday. Finally, Wedbush reaffirmed a "neutral" rating and set a $6.50 price target on shares of UWM in a research report on Monday, March 3rd. Five investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $6.86.

Institutional Investors Weigh In On UWM

Hedge funds have recently made changes to their positions in the company. GAMMA Investing LLC boosted its holdings in shares of UWM by 101.8% during the 1st quarter. GAMMA Investing LLC now owns 5,863 shares of the company's stock valued at $32,000 after buying an additional 2,958 shares in the last quarter. Signaturefd LLC boosted its position in shares of UWM by 135.4% in the 1st quarter. Signaturefd LLC now owns 8,159 shares of the company's stock worth $45,000 after purchasing an additional 4,693 shares in the last quarter. SYM FINANCIAL Corp purchased a new stake in shares of UWM in the 1st quarter worth approximately $64,000. Sequoia Financial Advisors LLC bought a new position in UWM during the 1st quarter valued at approximately $65,000. Finally, Grange Capital LLC purchased a new position in UWM during the first quarter valued at $71,000. 53.59% of the stock is currently owned by institutional investors.

UWM Price Performance

The firm has a fifty day moving average price of $5.14 and a two-hundred day moving average price of $5.81. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.06. The stock has a market capitalization of $6.76 billion, a P/E ratio of -18.39 and a beta of 1.75.

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.