UWM (NYSE:UWMC) Stock Price Up 7.4% - Here's What Happened

Key Points

• UWM Holdings Corporation saw its stock price increase by 7.4% on Wednesday, trading at $6.88 compared to a previous close of $6.40, with a trading volume of approximately 4.15 million shares.
• Analyst ratings indicate a consensus rating of "Hold" for UWM, with target prices ranging from $4.50 to $6.00 following various adjustments by brokerage firms.
• The company recently declared a quarterly dividend of $0.10, which translates to an annualized basis of $0.40 and a dividend yield of 5.9%.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report) shares rose 7.4% on Wednesday . The company traded as high as $6.89 and last traded at $6.88. Approximately 4,153,837 shares changed hands during trading, a decline of 30% from the average daily volume of 5,970,052 shares. The stock had previously closed at $6.40.

Analyst Ratings Changes

Several brokerages recently commented on UWMC. Barclays raised UWM from an "equal weight" rating to an "overweight" rating and set a $6.00 target price on the stock in a report on Tuesday, July 8th. The Goldman Sachs Group dropped their target price on UWM from $6.00 to $5.25 and set a "neutral" rating on the stock in a report on Wednesday, July 2nd. Wall Street Zen raised UWM from a "strong sell" rating to a "hold" rating in a report on Saturday, August 9th. Finally, Keefe, Bruyette & Woods downgraded UWM from an "outperform" rating to a "market perform" rating and cut their price objective for the company from $6.50 to $4.50 in a research report on Thursday, July 10th. One research analyst has rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $5.54.

UWM Stock Performance

The firm's 50 day simple moving average is $4.87 and its 200-day simple moving average is $4.86. The company has a debt-to-equity ratio of 1.85, a quick ratio of 1.55 and a current ratio of 1.55. The company has a market capitalization of $10.87 billion, a price-to-earnings ratio of -135.90 and a beta of 1.76.

UWM (NYSE:UWMC - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.06 by $0.10. UWM had a net margin of 0.48% and a negative return on equity of 5.56%. The company had revenue of $758.70 million for the quarter, compared to the consensus estimate of $621.60 million. Analysts expect that UWM Holdings Corporation will post 0.2 EPS for the current year.

UWM Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 9th. Stockholders of record on Thursday, September 18th will be paid a $0.10 dividend. The ex-dividend date of this dividend is Thursday, September 18th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 5.9%. UWM's dividend payout ratio is -800.00%.

Insider Buying and Selling 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 shares were sold at an average price of $4.22, for a total value of $1,688,151.92. Following the transaction, the chief executive officer directly owned 1,499,352 shares of the company's stock, valued at approximately $6,327,265.44. This represents a 21.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders have sold 13,601,224 shares of company stock valued at $63,945,755 over the last 90 days. Corporate insiders own 87.50% of the company's stock.

Hedge Funds Weigh In On UWM

A number of hedge funds have recently modified their holdings of the stock. GAMMA Investing LLC boosted its holdings in UWM by 101.8% in the first quarter. GAMMA Investing LLC now owns 5,863 shares of the company's stock worth $32,000 after purchasing an additional 2,958 shares in the last quarter. Raymond James Financial Inc. bought a new stake in UWM in the second quarter worth $35,000. Signaturefd LLC boosted its holdings in UWM by 135.4% in the first quarter. Signaturefd LLC now owns 8,159 shares of the company's stock worth $45,000 after purchasing an additional 4,693 shares in the last quarter. R Squared Ltd bought a new stake in UWM in the second quarter worth $51,000. Finally, Quarry LP bought a new stake in UWM in the first quarter worth $53,000. 53.59% of the stock is owned by institutional investors and hedge funds.

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.

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