UWM (NYSE:UWMC) Posts Quarterly Earnings Results, Misses Estimates By $0.06 EPS

UWM (NYSE:UWMC) announced its earnings results on Thursday. The company reported $0.01 EPS for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.06), Zacks reports. UWM had a net margin of 0.48% and a negative return on equity of 5.56%. The business had revenue of $843.25 million for the quarter, compared to the consensus estimate of $651.51 million.

UWM Price Performance

Shares of NYSE:UWMC opened at $5.11 on Friday. The firm’s 50 day simple moving average is $5.93 and its two-hundred day simple moving average is $4.96. 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 company has a market capitalization of $8.17 billion, a P/E ratio of -102.20 and a beta of 1.79. UWM has a 1-year low of $3.80 and a 1-year high of $7.14.

UWM Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 8th. Shareholders of record on Thursday, December 18th will be given a $0.10 dividend. The ex-dividend date is Thursday, December 18th. This represents a $0.40 dividend on an annualized basis and a yield of 7.8%. UWM’s dividend payout ratio is presently -800.00%.

Analyst Upgrades and Downgrades

Several research analysts have commented on UWMC shares. Morgan Stanley lowered shares of UWM from an “overweight” rating to an “equal weight” rating and upped their price objective for the stock from $4.50 to $6.50 in a report on Monday, September 29th. UBS Group increased their price target on shares of UWM from $4.50 to $5.50 and gave the stock a “neutral” rating in a research note on Friday, October 10th. BTIG Research reaffirmed a “buy” rating and set a $10.00 target price on shares of UWM in a research note on Monday, September 22nd. Wall Street Zen raised UWM from a “strong sell” rating to a “hold” rating in a research report on Saturday, August 9th. Finally, Barclays lifted their price target on UWM from $6.00 to $7.00 and gave the stock an “overweight” rating in a research report on Monday, October 6th. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $6.46.

Insider Buying and Selling at UWM

In other UWM news, CEO Ishbia Mat sold 596,356 shares of the firm’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 sale, the chief executive officer directly owned 6,705,072 shares of the company’s stock, valued at $45,862,692.48. This trade represents a 8.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In the last 90 days, insiders have sold 19,316,712 shares of company stock worth $113,103,319. 87.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in UWMC. Balyasny Asset Management L.P. increased its stake in UWM by 116.6% in the 2nd quarter. Balyasny Asset Management L.P. now owns 5,991,072 shares of the company’s stock worth $24,803,000 after acquiring an additional 3,224,806 shares during the last quarter. Bank of America Corp DE lifted its position in 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. First Trust Advisors LP bought a new stake in shares of UWM in the 2nd quarter worth about $4,992,000. Jump Financial LLC bought a new position in shares of UWM in the 2nd quarter valued at about $2,180,000. Finally, Brevan Howard Capital Management LP lifted its holdings in shares of UWM by 227.8% in the 2nd quarter. Brevan Howard Capital Management LP now owns 601,168 shares of the company’s stock valued at $2,489,000 after acquiring an additional 417,789 shares during the last quarter. Hedge funds and other institutional investors own 53.59% of the company’s stock.

UWM Company Profile

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.