UWM (NYSE:UWMC) Trading Up 7.2% - Here's Why

Key Points

• UWM Holdings (NYSE:UWMC) rose 7.2% on Friday, trading as high as $1.85 after closing at $1.74 the prior day.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating with an average price target of $4.81, though several firms recently reiterated or adjusted ratings and targets.
• UWM recently reported better-than-expected earnings, posting $0.09 EPS versus the $0.06 estimate and revenue of $901.43 million versus $709.85 million expected.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report) was up 7.2% on Friday . The company traded as high as $1.85 and last traded at $1.8650. Approximately 3,956,807 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 19,175,100 shares. The stock had previously closed at $1.74.

Analysts Set New Price Targets

UWMC has been the subject of a number of research analyst reports. BTIG Research reiterated a "buy" rating and set a $4.00 price target on shares of UWM in a research report on Wednesday, June 24th. Stephens started coverage on shares of UWM in a research note on Friday, April 24th. They issued an "equal weight" rating and a $4.00 target price on the stock. Argus raised shares of UWM to a "hold" rating in a research note on Tuesday, March 31st. Barclays decreased their price target on shares of UWM from $5.00 to $4.00 and set an "overweight" rating on the stock in a report on Tuesday, July 7th. Finally, Keefe, Bruyette & Woods upgraded shares of UWM from a "market perform" rating to an "outperform" rating and cut their target price for the stock from $4.50 to $3.75 in a research report on Thursday, June 25th. Four equities research 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.com, the stock has a consensus rating of "Hold" and a consensus price target of $4.81.

UWM Stock Performance

The company has a quick ratio of 1.52, a current ratio of 1.52 and a debt-to-equity ratio of 3.13. The firm has a market cap of $2.95 billion, a P/E ratio of 6.83 and a beta of 1.76. The business has a fifty day simple moving average of $2.41 and a 200-day simple moving average of $3.64.

UWM (NYSE:UWMC - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported $0.09 EPS for the quarter, beating 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%. On average, sell-side analysts predict that UWM Holdings Corporation will post 0.34 EPS for the current fiscal year.

UWM Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 9th. Stockholders of record on Thursday, June 18th were paid a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 21.7%. The ex-dividend date of this dividend was Thursday, June 18th. UWM's dividend payout ratio is currently 148.15%.

Insider Buying and Selling

In other UWM news, CEO Ishbia Mat sold 1,003,333 shares of the firm's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $3.39, for a total transaction of $3,401,298.87. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 7,932,876 shares of company stock worth $28,471,634. Corporate insiders own 80.30% of the company's stock.

Institutional Trading of UWM

Large investors have recently made changes to their positions in the stock. Allworth Financial LP lifted its holdings in shares of UWM by 5,681.9% during the 3rd quarter. Allworth Financial LP now owns 4,163 shares of the company's stock valued at $25,000 after buying an additional 4,091 shares during the period. Raymond James Financial Inc. purchased a new stake in UWM during the second quarter valued at $35,000. Farther Finance Advisors LLC increased its position in UWM by 1,410.7% during the fourth quarter. Farther Finance Advisors LLC now owns 8,596 shares of the company's stock valued at $38,000 after acquiring an additional 8,027 shares during the last quarter. Advisory Services Network LLC bought a new position in UWM in the third quarter valued at about $38,000. Finally, Fifth Third Bancorp purchased a new position in UWM in the first quarter worth about $41,000. 53.59% of the stock is currently owned by institutional investors.

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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