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

UWM Holdings Co. (NYSE:UWMC - Get Free Report) shares 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.

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

UWM Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, July 10th. Shareholders of record on Wednesday, June 18th will be issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a yield of 9.46%. The ex-dividend date is Wednesday, June 18th. UWM's payout ratio is presently -307.69%.

Wall Street Analyst Weigh In

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

Institutional Trading of UWM

Several institutional investors and hedge funds have recently modified their holdings of the stock. GAMMA Investing LLC raised its position in UWM by 101.8% in 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 during the last quarter. Signaturefd LLC raised its holdings in shares of UWM by 135.4% in the first quarter. Signaturefd LLC now owns 8,159 shares of the company's stock valued at $45,000 after purchasing an additional 4,693 shares during the last quarter. SYM FINANCIAL Corp bought a new position in shares of UWM during the first quarter valued at about $64,000. Sequoia Financial Advisors LLC purchased a new position in UWM during the first quarter worth about $65,000. Finally, Grange Capital LLC bought a new stake in UWM in the 1st quarter worth about $71,000. 53.59% of the stock is owned by hedge funds and other institutional investors.

UWM Stock Performance

The company's 50 day simple moving average is $5.14 and its 200 day simple moving average is $5.81. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.40 and a current ratio of 1.40. The stock has a market cap of $6.76 billion, a PE 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.