UWM (NYSE:UWMC) Shares Up 6.1% - Here's What Happened

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%.

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

Analysts Set New Price Targets

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

UWM Trading Up 3.1%

The business has a 50 day simple moving average of $4.20 and a 200-day simple moving average of $5.03. The company has a current ratio of 1.50, a quick ratio of 1.50 and a debt-to-equity ratio of 1.87. The stock has a market capitalization of $6.63 billion, a price-to-earnings ratio of -31.88 and a beta of 1.68.

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

UWM Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, July 10th. Stockholders 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 9.7%. UWM's payout ratio is -307.69%.

Insider Transactions at UWM

In other news, CEO Ishbia Mat sold 400,036 shares of the company's stock in a transaction on Monday, July 14th. The stock was 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 represents a 21.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. In the last ninety days, insiders sold 7,200,648 shares of company stock worth $30,194,717. Insiders own 87.50% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. GAMMA Investing LLC boosted its stake in 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 purchasing an additional 2,958 shares during the period. Signaturefd LLC boosted its stake in UWM by 135.4% during the 1st 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 period. R Squared Ltd bought a new stake in UWM during the 2nd quarter valued at approximately $51,000. Quarry LP bought a new stake in UWM during the 1st quarter valued at approximately $53,000. Finally, Focus Partners Wealth bought a new stake in UWM during the 1st quarter valued at approximately $55,000. 53.59% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.