UWM (NYSE:UWMC) Hits New 1-Year Low – Should You Sell?

UWM Holdings Corporation (NYSE:UWMC)’s share price reached a new 52-week low during trading on Wednesday . The company traded as low as $2.83 and last traded at $2.9250, with a volume of 19770058 shares. The stock had previously closed at $2.92.

Analysts Set New Price Targets

A number of analysts have commented on UWMC shares. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $5.50 target price on shares of UWM in a report on Thursday, May 7th. Weiss Ratings raised UWM from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, May 12th. Wall Street Zen raised UWM from a “strong sell” rating to a “hold” rating in a report on Saturday, February 28th. Jefferies Financial Group set a $4.40 price objective on UWM in a report on Wednesday, February 25th. Finally, Stephens started coverage on UWM in a report on Friday, April 24th. They issued an “equal weight” rating and a $4.00 price objective for the company. Three analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $5.79.

UWM Stock Up 1.8%

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 company has a market cap of $4.90 billion, a P/E ratio of 11.35 and a beta of 1.78. The company has a fifty day moving average of $3.56 and a 200 day moving average of $4.54.

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

UWM Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 18th will be issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a yield of 13.1%. The ex-dividend date of this dividend is Thursday, June 18th. UWM’s payout ratio is currently 148.15%.

Insider Transactions at UWM

In other UWM news, CEO Ishbia Mat sold 1,003,333 shares of the business’s stock in a transaction dated Friday, May 8th. The stock was 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 is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 29,372,752 shares of company stock worth $109,511,859 over the last three months. Insiders own 80.30% of the company’s stock.

Institutional Trading of UWM

Several hedge funds have recently bought and sold shares of UWMC. Brandes Investment Partners LP bought a new stake in UWM during the fourth quarter valued at about $45,867,000. Azora Capital LP grew its holdings in UWM by 230.8% during the fourth quarter. Azora Capital LP now owns 11,296,053 shares of the company’s stock valued at $49,477,000 after purchasing an additional 7,881,586 shares during the period. Integrated Investment Consultants LLC bought a new stake in UWM during the third quarter valued at about $32,630,000. Renaissance Technologies LLC bought a new stake in UWM during the fourth quarter valued at about $21,580,000. Finally, First Trust Advisors LP bought a new stake in UWM during the fourth quarter valued at about $19,303,000. Institutional investors own 53.59% of the company’s stock.

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.