UWM (NYSE:UWMC) Reaches New 1-Year Low – Here’s Why

UWM Holdings Corporation (NYSE:UWMC) hit a new 52-week low on Thursday . The stock traded as low as $3.06 and last traded at $3.0650, with a volume of 8801901 shares trading hands. The stock had previously closed at $3.10.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. BTIG Research reissued a “buy” rating and issued a $10.00 price objective on shares of UWM in a research note on Tuesday, March 10th. Keefe, Bruyette & Woods dropped their price objective on UWM from $5.00 to $4.50 and set a “market perform” rating on the stock in a research note on Friday, May 8th. Jefferies Financial Group set a $4.40 target price on shares of UWM in a research note on Wednesday, February 25th. Wall Street Zen raised shares of UWM from a “strong sell” rating to a “hold” rating in a research report on Saturday, February 28th. Finally, Compass Point started coverage on shares of UWM in a report on Tuesday, March 10th. They set a “buy” rating and a $8.50 price target on the stock. Three analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $5.79.

UWM Price Performance

The stock has a market cap of $4.84 billion, a P/E ratio of 11.20 and a beta of 1.78. The business has a 50 day simple moving average of $3.68 and a 200-day simple moving average of $4.66. The company has a debt-to-equity ratio of 3.13, a quick ratio of 1.52 and a current ratio of 1.52.

UWM (NYSE:UWMC) last issued its quarterly earnings results on Wednesday, May 6th. The company reported $0.09 earnings per share for the quarter, topping analysts’ consensus estimates of $0.06 by $0.03. UWM had a net margin of 1.92% and a return on equity of 19.01%. The company had revenue of $901.43 million for the quarter, compared to the consensus estimate of $709.85 million. On average, sell-side analysts forecast that UWM Holdings Corporation will post 0.38 EPS for the current year.

UWM Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Thursday, June 18th will be issued a $0.10 dividend. The ex-dividend date of this dividend is Thursday, June 18th. This represents a $0.40 annualized dividend and a yield of 13.2%. UWM’s dividend payout ratio (DPR) is 148.15%.

Insider Buying and Selling at UWM

In other news, CEO Ishbia Mat sold 1,003,333 shares of the business’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $3.57, for a total value of $3,581,898.81. Following the sale, the chief executive officer owned 2,995,754 shares of the company’s stock, valued at $10,694,841.78. The trade was a 25.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 31,271,374 shares of company stock valued at $118,745,491 in the last three months. 80.30% of the stock is owned by company insiders.

Institutional Trading of UWM

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Cetera Investment Advisers lifted its holdings in UWM by 6.0% during the 1st quarter. Cetera Investment Advisers now owns 159,891 shares of the company’s stock worth $579,000 after purchasing an additional 9,057 shares in the last quarter. Signature Equity Partners LLC increased its position in shares of UWM by 20.5% during the first quarter. Signature Equity Partners LLC now owns 925,864 shares of the company’s stock valued at $3,352,000 after buying an additional 157,262 shares during the period. Dimensional Fund Advisors LP boosted its position in shares of UWM by 164.5% in the first quarter. Dimensional Fund Advisors LP now owns 146,824 shares of the company’s stock valued at $532,000 after acquiring an additional 91,315 shares during the period. Spartan Wealth Advisory Services LLC bought a new position in shares of UWM in the first quarter valued at approximately $392,000. Finally, 180 Wealth Advisors LLC grew its stake in UWM by 87.2% during the first quarter. 180 Wealth Advisors LLC now owns 297,827 shares of the company’s stock valued at $1,078,000 after acquiring an additional 138,754 shares in the last quarter. 53.59% of the stock is currently owned by institutional investors.

About UWM

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.