UWM (NYSE:UWMC) Stock Price Up 6.1% - Still a Buy?

Key Points

• UWM Holdings Corporation shares rose by 6.1%, reaching a trading price of $4.27, despite a significant drop in trading volume compared to previous sessions.
• Five analysts currently rate UWM's stock as a "Hold" with an average price target of $6.18, reflecting mixed sentiments from institutions regarding its potential performance.
• The company recently declared a quarterly dividend of $0.10 per share, translating to an annualized yield of 9.7%, although its payout ratio stands at a negative 307.69%.

Shares of UWM Holdings Corporation (NYSE:UWMC - Get Free Report) were up 6.1% on Friday . The stock traded as high as $4.34 and last traded at $4.27. Approximately 2,361,496 shares changed hands during mid-day trading, a decline of 55% from the average daily volume of 5,251,249 shares. The stock had previously closed at $4.02.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on UWMC shares. Keefe, Bruyette & Woods cut UWM from an "outperform" rating to a "market perform" rating and reduced their price target for the stock from $6.50 to $4.50 in a research note on Thursday, July 10th. UBS Group raised UWM from a "sell" rating to a "neutral" rating and cut their target price for the stock from $4.75 to $4.50 in a research note on Wednesday, April 16th. Barclays raised UWM from an "equal weight" rating to an "overweight" rating and set a $6.00 target price on the stock in a research note on Tuesday, July 8th. Finally, The Goldman Sachs Group cut their target price on UWM from $6.00 to $5.25 and set a "neutral" rating on the stock in a research note on Wednesday, July 2nd. Five analysts have rated the stock with a hold rating and two have given a buy rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $6.18.

UWM Trading Down 0.4%

The company has a 50 day simple moving average of $4.20 and a 200 day simple moving average of $4.99. The company has a debt-to-equity ratio of 1.87, a quick ratio of 1.50 and a current ratio of 1.50. The company has a market capitalization of $6.82 billion, a PE ratio of -32.81 and a beta of 1.70.

UWM (NYSE:UWMC - Get Free Report) last posted its quarterly earnings results 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 company had revenue of $613.37 million during the quarter, compared to analysts' expectations of $558.80 million. UWM had a negative net margin of 0.36% and a negative return on equity of 3.86%. Analysts anticipate that UWM Holdings Corporation will post 0.2 earnings per share for the current year.

UWM Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 10th. Shareholders of record on Wednesday, June 18th were issued a dividend of $0.10 per share. The ex-dividend date of this dividend was Wednesday, June 18th. This represents a $0.40 annualized dividend and a dividend yield of 9.4%. UWM's dividend payout ratio (DPR) is presently -307.69%.

Insider Activity

In related news, CEO Ishbia Mat sold 400,036 shares of the firm's stock in a transaction dated Monday, July 14th. The shares were sold at an average price of $4.22, for a total value of $1,688,151.92. Following the completion of the sale, the chief executive officer owned 1,499,352 shares in the company, valued at $6,327,265.44. This trade represents a 21.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders sold a total of 8,000,720 shares of company stock worth $33,571,021 over the last 90 days. Company insiders own 94.11% of the company's stock.

Institutional Trading of UWM

Hedge funds and other institutional investors have recently bought and sold shares of the company. GAMMA Investing LLC grew its position in UWM by 101.8% in the 1st quarter. GAMMA Investing LLC now owns 5,863 shares of the company's stock worth $32,000 after purchasing an additional 2,958 shares during the last quarter. Signaturefd LLC boosted 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 acquiring an additional 4,693 shares in the last quarter. R Squared Ltd bought a new position in shares of UWM in the second quarter valued at approximately $51,000. Quarry LP acquired a new stake in UWM during the first quarter valued at approximately $53,000. Finally, Focus Partners Wealth acquired a new stake in UWM during the first quarter valued at approximately $55,000. 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.