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

UWM Holdings Corporation (NYSE:UWMC - Get Free Report)'s share 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.

Specifically, CEO Ishbia Mat sold 400,036 shares of the stock in a transaction that occurred 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 represents a 12.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Ishbia Mat sold 400,036 shares of the stock in a transaction that occurred 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 approximately $14,173,104.60. This trade 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 the company's stock in a transaction that occurred 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 transaction, the chief executive officer owned 4,299,604 shares in the company, valued at $18,574,289.28. This represents a 8.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink.

Analyst Upgrades and Downgrades

UWMC has been the subject of a number of recent analyst reports. Barclays upgraded UWM from an "equal weight" rating to an "overweight" rating and set a $6.00 target price for the company in a report on Tuesday. Keefe, Bruyette & Woods downgraded UWM from an "outperform" rating to a "market perform" rating and decreased their target price for the company from $6.50 to $4.50 in a report on Thursday. The Goldman Sachs Group decreased their target price on UWM from $6.00 to $5.25 and set a "neutral" rating for the company in a report on Wednesday, July 2nd. Finally, UBS Group upgraded UWM from a "sell" rating to a "neutral" rating and decreased their target price for the company from $4.75 to $4.50 in a report on Wednesday, April 16th. Five equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $6.18.

UWM Stock Performance

The business has a fifty day simple moving average of $4.18 and a 200-day simple moving average of $5.17. The company has a quick ratio of 1.50, a current ratio of 1.50 and a debt-to-equity ratio of 1.87. The firm has a market cap of $6.65 billion, a P/E ratio of -32.00 and a beta of 1.68.

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

UWM Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 10th. Stockholders of record on Wednesday, June 18th were paid a $0.10 dividend. The ex-dividend date of this dividend was Wednesday, June 18th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 9.62%. UWM's dividend payout ratio is currently -307.69%.

Institutional Investors Weigh In On UWM

A number of institutional investors have recently modified their holdings of UWMC. Bank of New York Mellon Corp grew its stake in shares of UWM by 15.7% in the fourth quarter. Bank of New York Mellon Corp now owns 1,087,978 shares of the company's stock worth $6,386,000 after acquiring an additional 147,459 shares during the last quarter. Charles Schwab Investment Management Inc. grew its stake in shares of UWM by 1.1% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 580,547 shares of the company's stock worth $3,408,000 after acquiring an additional 6,257 shares during the last quarter. Victory Capital Management Inc. grew its stake in shares of UWM by 20.7% in the fourth quarter. Victory Capital Management Inc. now owns 20,330 shares of the company's stock worth $119,000 after acquiring an additional 3,488 shares during the last quarter. AlphaQuest LLC grew its stake in shares of UWM by 749.0% in the fourth quarter. AlphaQuest LLC now owns 26,284 shares of the company's stock worth $154,000 after acquiring an additional 23,188 shares during the last quarter. Finally, Counterpoint Mutual Funds LLC boosted its position in shares of UWM by 147.0% during the fourth quarter. Counterpoint Mutual Funds LLC now owns 72,810 shares of the company's stock valued at $427,000 after buying an additional 43,331 shares during the last quarter. 53.59% of the stock is owned by hedge funds and other institutional investors.

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.