UWM (NYSE:UWMC) Trading Down 4.7% - Time to Sell?

Key Points

• UWM shares fell 4.7% on Monday, trading as low as $1.94 and ending near $1.93 on light volume compared with its average trading activity.
• Despite the drop, several analysts remain mixed on the stock: the consensus rating is Hold with an average price target of $4.81, though some firms still have buy or overweight ratings.
• UWM recently beat earnings expectations, posting $0.09 EPS versus $0.06 expected and revenue of $901.4 million, but the company also pays a high dividend yield of 21.1% with a payout ratio above 148%.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report) dropped 4.7% on Monday . The stock traded as low as $1.94 and last traded at $1.9250. Approximately 2,444,604 shares were traded during mid-day trading, a decline of 87% from the average daily volume of 19,244,625 shares. The stock had previously closed at $2.02.

Analyst Ratings Changes

Several brokerages have recently weighed in on UWMC. Zacks Research upgraded UWM from a "strong sell" rating to a "hold" rating in a research note on Monday, March 30th. BTIG Research restated a "buy" rating and set a $4.00 price objective on shares of UWM in a research note on Wednesday, June 24th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $5.50 target price on shares of UWM in a report on Thursday, May 7th. Barclays decreased their target price on UWM from $5.00 to $4.00 and set an "overweight" rating for the company in a research report on Tuesday, July 7th. Finally, Morgan Stanley set a $3.00 price target on UWM in a research report on Monday. Four investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $4.81.

UWM Trading Down 6.2%

The firm has a market cap of $3.03 billion, a P/E ratio of 7.02 and a beta of 1.76. The business's 50-day moving average is $2.51 and its two-hundred day moving average is $3.71. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 3.13.

UWM (NYSE:UWMC - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.06 by $0.03. The firm had revenue of $901.43 million for the quarter, compared to analysts' expectations of $709.85 million. UWM had a net margin of 1.92% and a return on equity of 19.01%. As a group, analysts expect that UWM Holdings Corporation will post 0.36 earnings per share for the current fiscal year.

UWM Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 9th. Investors of record on Thursday, June 18th were given a dividend of $0.10 per share. The ex-dividend date was Thursday, June 18th. This represents a $0.40 dividend on an annualized basis and a yield of 21.1%. UWM's payout ratio is currently 148.15%.

Insider Buying and Selling

In other UWM news, CEO Ishbia Mat sold 1,003,333 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $3.39, for a total value of $3,401,298.87. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 9,934,024 shares of company stock worth $35,925,911. 80.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On UWM

Several institutional investors have recently modified their holdings of the company. Dimensional Fund Advisors LP grew its stake in UWM by 4.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 55,509 shares of the company's stock valued at $243,000 after purchasing an additional 2,329 shares in the last quarter. Public Employees Retirement System of Ohio increased its position in UWM by 4.9% in the 4th quarter. Public Employees Retirement System of Ohio now owns 51,423 shares of the company's stock worth $225,000 after purchasing an additional 2,407 shares during the last quarter. Allworth Financial LP raised its stake in shares of UWM by 62.5% during the 4th quarter. Allworth Financial LP now owns 6,765 shares of the company's stock worth $30,000 after purchasing an additional 2,602 shares in the last quarter. Choreo LLC raised its stake in shares of UWM by 16.1% during the 4th quarter. Choreo LLC now owns 19,017 shares of the company's stock worth $84,000 after purchasing an additional 2,637 shares in the last quarter. Finally, Fortem Financial Group LLC lifted its holdings in shares of UWM by 29.5% during the 4th quarter. Fortem Financial Group LLC now owns 16,685 shares of the company's stock valued at $73,000 after buying an additional 3,800 shares during the last quarter. Institutional investors own 53.59% of the company's stock.

UWM Company Profile

United Wholesale Mortgage NYSE: UWMC is a leading mortgage lender in the United States specializing in the wholesale channel. The company partners with independent mortgage brokers, community banks and credit unions to offer a full suite of residential mortgage products. Through its network of third-party originators, United Wholesale Mortgage underwrites, funds and closes loans, allowing its partners to focus on customer acquisition and service.

The company’s product offerings include conventional fixed- and adjustable-rate mortgages, Federal Housing Administration (FHA) loans, Veterans Affairs (VA) loans, U.S.

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