UWM Target of Unusually Large Options Trading (NYSE:UWMC)

Key Points

• UWM Holdings Corporation (NYSE:UWMC) experienced a significant spike in options trading, with 21,222 call options purchased, marking a 437% increase from its average volume.
• Recent analyst ratings for UWM show mixed opinions, with price targets ranging from $4.50 to $6.00, reflecting changes from firms like Keefe, Bruyette & Woods and Barclays.
• CEO Ishbia Mat sold 400,036 shares of UWM for over $1.8 million, indicating a 17.40% decrease in his holdings, while insider transactions over the last quarter totaled nearly $39 million.

UWM Holdings Corporation (NYSE:UWMC - Get Free Report) was the recipient of unusually large options trading activity on Wednesday. Stock traders purchased 21,222 call options on the stock. Thisisanincreaseofapproximately437% compared to the average volume of 3,949 call options.

Analysts Set New Price Targets

A number of analysts have recently weighed in on UWMC shares. Keefe, Bruyette & Woods lowered shares of UWM from an "outperform" rating to a "market perform" rating and reduced their price target for the stock 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 objective on the stock in a research note on Tuesday, July 8th. Wall Street Zen upgraded shares of UWM from a "strong sell" rating to a "hold" rating in a research note on Saturday. The Goldman Sachs Group lowered their price objective on shares of UWM from $6.00 to $5.25 and set a "neutral" rating on the stock in a research note on Wednesday, July 2nd. Finally, UBS Group upgraded shares of UWM from a "sell" rating to a "neutral" rating and lowered their price objective for the company from $4.75 to $4.50 in a research note on Wednesday, April 16th. Six research analysts have rated the stock with a hold rating and one has given a buy rating to the company. According to MarketBeat.com, UWM presently has an average rating of "Hold" and a consensus target price of $5.54.

Insider Transactions at UWM

In related news, CEO Ishbia Mat sold 400,036 shares of UWM stock in a transaction on Monday, August 11th. The shares were sold at an average price of $4.58, for a total transaction of $1,832,164.88. Following the sale, the chief executive officer owned 1,898,632 shares of the company's stock, valued at $8,695,734.56. The trade was a 17.40% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Over the last quarter, insiders have sold 9,200,828 shares of company stock worth $38,935,504. Insiders own 94.11% of the company's stock.

Institutional Investors Weigh In On UWM

A number of large investors have recently made changes to their positions in the company. PACK Private Wealth LLC acquired a new stake in shares of UWM during the second quarter valued at approximately $70,000. Quadrature Capital Ltd acquired a new stake in shares of UWM during the second quarter valued at approximately $369,000. Hsbc Holdings PLC acquired a new stake in shares of UWM during the second quarter valued at approximately $792,000. Capital Fund Management S.A. raised its holdings in shares of UWM by 260.9% during the second quarter. Capital Fund Management S.A. now owns 573,583 shares of the company's stock valued at $2,375,000 after acquiring an additional 414,667 shares during the period. Finally, Russell Investments Group Ltd. raised its holdings in shares of UWM by 68.5% during the second quarter. Russell Investments Group Ltd. now owns 22,602 shares of the company's stock valued at $94,000 after acquiring an additional 9,189 shares during the period. Institutional investors and hedge funds own 53.59% of the company's stock.

UWM Price Performance

UWMC stock traded up $0.44 on Wednesday, hitting $5.50. 7,680,700 shares of the company's stock traded hands, compared to its average volume of 5,576,133. UWM has a 1-year low of $3.80 and a 1-year high of $9.74. The stock has a market cap of $8.79 billion, a price-to-earnings ratio of -110.10 and a beta of 1.70. The stock has a fifty day moving average of $4.25 and a 200-day moving average of $4.93. The company has a current ratio of 1.55, a quick ratio of 1.55 and a debt-to-equity ratio of 1.85.

UWM (NYSE:UWMC - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported $0.16 EPS for the quarter, beating the consensus estimate of $0.06 by $0.10. UWM had a net margin of 0.48% and a negative return on equity of 5.56%. The business had revenue of $758.70 million during the quarter, compared to analyst estimates of $621.60 million. On average, analysts forecast that UWM will post 0.2 EPS for the current fiscal year.

UWM Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 9th. Stockholders of record on Thursday, September 18th will be issued a dividend of $0.10 per share. The ex-dividend date is Thursday, September 18th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 7.3%. UWM's payout ratio is currently -800.00%.

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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