UWM (NYSE:UWMC) Trading 4.9% Higher - Here's Why

Key Points

• UWM Holdings Corporation's stock price rose by 4.9%, reaching a high of $5.68, with a significantly increased trading volume of over 7.2 million shares compared to its average.
• Analysts have mixed opinions on UWM, with Goldman Sachs lowering its price target from $6.00 to $5.25, while Barclays upgraded it to an "overweight" rating with a $6.00 target.
• The company recently declared a dividend of $0.10 per share, representing an annual yield of 7.1%, with the ex-dividend date set for September 18th.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report) traded up 4.9% during trading on Tuesday . The stock traded as high as $5.68 and last traded at $5.64. 7,261,442 shares traded hands during trading, an increase of 26% from the average session volume of 5,777,456 shares. The stock had previously closed at $5.37.

Analysts Set New Price Targets

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

UWM Price Performance

The stock has a market cap of $8.98 billion, a price-to-earnings ratio of -112.30 and a beta of 1.70. The stock's 50 day moving average price is $4.35 and its two-hundred day moving average price is $4.90. The company has a quick ratio of 1.55, a current ratio of 1.55 and a debt-to-equity ratio of 1.85.

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

UWM Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 9th. Investors of record on Thursday, September 18th will be issued a dividend of $0.10 per share. The ex-dividend date of this dividend is Thursday, September 18th. This represents a $0.40 dividend on an annualized basis and a yield of 7.1%. UWM's dividend payout ratio is -800.00%.

Insider Transactions at UWM

In other UWM news, CEO Ishbia Mat sold 400,036 shares of the stock in a transaction on Monday, July 14th. The shares were sold at an average price of $4.22, for a total transaction 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 $6,327,265.44. This trade represents a 21.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders have sold 10,400,936 shares of company stock worth $45,412,087 over the last quarter. Company insiders own 94.11% of the company's stock.

Institutional Investors Weigh In On UWM

A number of hedge funds have recently modified their holdings of the business. Balyasny Asset Management L.P. raised its position in shares of UWM by 116.6% in the second quarter. Balyasny Asset Management L.P. now owns 5,991,072 shares of the company's stock valued at $24,803,000 after buying an additional 3,224,806 shares during the last quarter. 683 Capital Management LLC acquired a new stake in shares of UWM in the second quarter valued at about $19,872,000. Bank of America Corp DE raised its position in shares of UWM by 93.8% in the second quarter. Bank of America Corp DE now owns 3,758,600 shares of the company's stock valued at $15,561,000 after buying an additional 1,819,129 shares during the last quarter. First Trust Advisors LP raised its position in shares of UWM by 886.9% in the fourth quarter. First Trust Advisors LP now owns 3,727,477 shares of the company's stock valued at $21,880,000 after buying an additional 3,349,779 shares during the last quarter. Finally, AQR Capital Management LLC increased its position in UWM by 1,144.7% during the first quarter. AQR Capital Management LLC now owns 2,496,805 shares of the company's stock worth $13,633,000 after purchasing an additional 2,296,205 shares during the last quarter. 53.59% of the stock is currently 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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