UWM (NYSE:UWMC) Shares Gap Down Following Insider Selling

UWM Holdings Corporation (NYSE:UWMC - Get Free Report)'s stock price gapped down prior to trading on Thursday after an insider sold shares in the company. The stock had previously closed at $4.26, but opened at $4.13. UWM shares last traded at $4.12, with a volume of 2,376,970 shares traded.

Specifically, CEO Ishbia Mat sold 400,036 shares of UWM stock in a transaction on Wednesday, July 9th. The stock was sold at an average price of $4.26, for a total transaction of $1,704,153.36. Following the completion of the sale, the chief executive officer owned 2,699,460 shares of the company's stock, valued at approximately $11,499,699.60. This trade represents a 12.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Ishbia Mat sold 400,036 shares of UWM stock in a transaction on Monday, July 7th. The shares were sold at an average price of $4.05, for a total value of $1,620,145.80. Following the sale, the chief executive officer directly owned 3,499,532 shares of the company's stock, valued at $14,173,104.60. This represents a 10.26% decrease in their position. The disclosure for this sale can be found here. In related news, CEO Ishbia Mat sold 400,036 shares of UWM stock in a transaction on Wednesday, July 2nd. The stock was sold at an average price of $4.32, for a total transaction of $1,728,155.52. Following the completion of the sale, the chief executive officer owned 4,299,604 shares of the company's stock, valued at approximately $18,574,289.28. This trade represents a 8.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on UWMC shares. The Goldman Sachs Group dropped their price target on UWM from $6.00 to $5.25 and set a "neutral" rating for the company in a research note on Wednesday, July 2nd. Barclays raised UWM from an "equal weight" rating to an "overweight" rating and set a $6.00 price target for the company in a research note on Tuesday, July 8th. UBS Group raised UWM from a "sell" rating to a "neutral" rating and dropped their price target for the stock from $4.75 to $4.50 in a research note on Wednesday, April 16th. Finally, Keefe, Bruyette & Woods lowered UWM from an "outperform" rating to a "market perform" rating and dropped their price target for the stock from $6.50 to $4.50 in a research note on Thursday. Five equities research analysts have rated the stock with a hold rating and two have given a buy rating to the stock. According to MarketBeat, UWM has a consensus rating of "Hold" and an average price target of $6.18.

UWM Stock Performance

The stock has a market cap of $6.65 billion, a PE ratio of -32.00 and a beta of 1.68. The company has a fifty day moving average price of $4.18 and a 200 day moving average price of $5.16. The company has a quick ratio of 1.50, a current ratio of 1.50 and a debt-to-equity ratio of 1.87.

UWM (NYSE:UWMC - Get Free Report) last released its quarterly earnings data on Tuesday, May 6th. The company reported ($0.23) EPS for the quarter, missing the consensus estimate of $0.06 by ($0.29). The company had revenue of $613.37 million during the quarter, compared to analysts' expectations of $558.80 million. UWM had a negative return on equity of 3.86% and a negative net margin of 0.36%. Analysts expect that UWM Holdings Corporation will post 0.2 earnings per share for the current year.

UWM Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 10th. Investors of record on Wednesday, June 18th were issued a dividend of $0.10 per share. The ex-dividend date was Wednesday, June 18th. This represents a $0.40 dividend on an annualized basis and a yield of 9.62%. UWM's dividend payout ratio is presently -307.69%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of UWMC. GAMMA Investing LLC grew 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 worth $32,000 after acquiring an additional 2,958 shares during the period. Signaturefd LLC grew its holdings in shares of UWM by 135.4% during the 1st quarter. Signaturefd LLC now owns 8,159 shares of the company's stock worth $45,000 after acquiring an additional 4,693 shares during the period. Quarry LP purchased a new position in shares of UWM during the 1st quarter worth approximately $53,000. Focus Partners Wealth purchased a new position in shares of UWM during the 1st quarter worth approximately $55,000. Finally, Independent Advisor Alliance purchased a new position in shares of UWM during the 1st quarter worth approximately $58,000. Hedge funds and other institutional investors own 53.59% of the company's stock.

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.