UWM (NYSE:UWMC) Trading Down 5.1% - Here's Why

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 Analysts Forecast Growth

A number of analysts recently issued reports on the company. Keefe, Bruyette & Woods cut UWM from an "outperform" rating to a "market perform" rating and decreased their target price for the company from $6.50 to $4.50 in a research report on Thursday, July 10th. 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 note on Tuesday, July 8th. The Goldman Sachs Group cut their target price on UWM from $6.00 to $5.25 and set a "neutral" rating for the company in a research note on Wednesday, July 2nd. Finally, Wall Street Zen raised UWM from a "strong sell" rating to a "hold" rating in a research note on Saturday, August 9th. One analyst has rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $5.54.

UWM Stock Down 2.0%

The stock has a market cap of $10.04 billion, a price-to-earnings ratio of -125.30 and a beta of 1.75. The company has a quick ratio of 1.55, a current ratio of 1.55 and a debt-to-equity ratio of 1.85. The stock has a fifty day moving average of $5.28 and a two-hundred day moving average of $4.87.

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

UWM Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 9th. Investors of record on Thursday, September 18th will be issued a $0.10 dividend. The ex-dividend date is Thursday, September 18th. This represents a $0.40 dividend on an annualized basis and a yield of 6.4%. UWM's dividend payout ratio (DPR) is presently -800.00%.

Insiders Place Their Bets

In related news, CEO Ishbia Mat sold 596,356 shares of UWM stock in a transaction on Monday, September 15th. The stock was sold at an average price of $6.84, for a total value of $4,079,075.04. Following the transaction, the chief executive officer owned 6,705,072 shares in the company, valued at approximately $45,862,692.48. This trade represents a 8.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold a total of 14,393,920 shares of company stock valued at $72,702,207 in the last 90 days. 94.11% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of UWMC. 683 Capital Management LLC acquired a new position in shares of UWM in the second quarter worth about $19,872,000. Balyasny Asset Management L.P. grew its holdings in shares of UWM by 116.6% during 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 purchasing an additional 3,224,806 shares during the last quarter. AQR Capital Management LLC grew its holdings in shares of UWM by 1,144.7% during the first quarter. AQR Capital Management LLC now owns 2,496,805 shares of the company's stock valued at $13,633,000 after purchasing an additional 2,296,205 shares during the last quarter. Azora Capital LP bought a new position in shares of UWM during the second quarter valued at approximately $9,032,000. Finally, Bank of America Corp DE grew its holdings in shares of UWM by 93.8% during 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 purchasing an additional 1,819,129 shares during the last quarter. Institutional investors and hedge funds own 53.59% of the company's stock.

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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