UWM (NYSE:UWMC) Trading Down 5.1% - What's Next?

Key Points

• UWM Holdings Corporation saw its stock decline by 5.1% to $6.08 during mid-day trading, significantly below the previous close of $6.40.
• Analyst ratings on UWM have been mixed, with one firm downgrading its rating and target price, while another raised it, leading to an average rating of "Hold" and a consensus price target of $5.54.
• The company announced a quarterly dividend of $0.10 per share, representing a 6.4% annual yield, but has a negative payout ratio of -800.00%.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report) traded down 5.1% during mid-day trading on Monday . The company traded as low as $6.13 and last traded at $6.08. 2,018,317 shares were traded during mid-day trading, a decline of 67% from the average session volume of 6,128,187 shares. The stock had previously closed at $6.40.

Wall Street Analyst Weigh In

UWMC has been the subject of several recent analyst reports. Wall Street Zen raised UWM from a "strong sell" rating to a "hold" rating in a research report on Saturday, August 9th. Barclays raised UWM from an "equal weight" rating to an "overweight" rating and set a $6.00 target price for the company in a research report on Tuesday, July 8th. Keefe, Bruyette & Woods cut UWM from an "outperform" rating to a "market perform" rating and decreased their target price for the stock from $6.50 to $4.50 in a research report on Thursday, July 10th. BTIG Research reaffirmed a "buy" rating and issued a $10.00 target price on shares of UWM in a research report on Monday. Finally, The Goldman Sachs Group reduced their price objective on UWM from $6.00 to $5.25 and set a "neutral" rating for the company in a research report on Wednesday, July 2nd. Two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, UWM has an average rating of "Hold" and a consensus target price of $6.18.

UWM Stock Up 2.8%

The company has a debt-to-equity ratio of 1.85, a current ratio of 1.55 and a quick ratio of 1.55. The business has a 50 day moving average price of $5.32 and a 200 day moving average price of $4.86. The firm has a market capitalization of $10.39 billion, a P/E ratio of -130.06 and a beta of 1.75.

UWM (NYSE:UWMC - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The company reported $0.16 EPS for the quarter, topping analysts' consensus estimates of $0.06 by $0.10. The business had revenue of $758.70 million for the quarter, compared to analyst estimates of $621.60 million. UWM had a negative return on equity of 5.56% and a net margin of 0.48%. On average, 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 will be paid on Thursday, October 9th. Investors of record on Thursday, September 18th will be paid a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a yield of 6.2%. The ex-dividend date is Thursday, September 18th. UWM's payout ratio is currently -800.00%.

Insider Transactions at UWM

In related news, CEO Ishbia Mat sold 596,356 shares of the business's stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $6.84, for a total transaction of $4,079,075.04. Following the transaction, the chief executive officer directly owned 6,705,072 shares in the company, valued at $45,862,692.48. The trade was a 8.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders sold 15,586,632 shares of company stock worth $80,264,001 in the last 90 days. Insiders own 94.11% of the company's stock.

Hedge Funds Weigh In On UWM

Several institutional investors and hedge funds have recently added to or reduced their stakes in UWMC. GAMMA Investing LLC increased its stake in UWM by 101.8% during the first quarter. GAMMA Investing LLC now owns 5,863 shares of the company's stock valued at $32,000 after acquiring an additional 2,958 shares during the period. Raymond James Financial Inc. bought a new stake in shares of UWM in the 2nd quarter valued at approximately $35,000. Signaturefd LLC grew its stake in shares of UWM by 135.4% in 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 shares of UWM in the 2nd quarter valued at approximately $51,000. Finally, Quarry LP bought a new stake in shares of UWM in the 1st quarter valued at approximately $53,000. 53.59% of the stock is currently owned by 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.