UWM (NYSE:UWMC) Hits New 1-Year Low – What’s Next?

Shares of UWM Holdings Corporation (NYSE:UWMC) hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $2.58 and last traded at $2.6150, with a volume of 12337229 shares traded. The stock had previously closed at $2.62.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on UWMC shares. Keefe, Bruyette & Woods reaffirmed a “market perform” rating on shares of UWM in a report on Friday. BTIG Research reissued a “buy” rating and set a $10.00 price objective on shares of UWM in a research note on Tuesday, March 10th. Wall Street Zen raised UWM from a “strong sell” rating to a “hold” rating in a research note on Saturday, February 28th. Jefferies Financial Group set a $4.40 price objective on UWM in a research note on Wednesday, February 25th. Finally, Argus raised UWM to a “hold” rating in a research note on Tuesday, March 31st. Three investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $5.79.

UWM Price Performance

The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 3.13. The firm has a market cap of $4.15 billion, a price-to-earnings ratio of 9.61 and a beta of 1.72. The stock’s fifty day moving average price is $3.42 and its 200-day moving average price is $4.37.

UWM (NYSE:UWMC) last issued its quarterly earnings results on Wednesday, May 6th. The company reported $0.09 EPS for the quarter, beating the consensus estimate of $0.06 by $0.03. The company had revenue of $901.43 million during 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%. As a group, equities research analysts forecast that UWM Holdings Corporation will post 0.38 earnings per share for the current fiscal year.

UWM Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Stockholders of record on Thursday, June 18th will be given a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 15.4%. The ex-dividend date of this dividend is Thursday, June 18th. UWM’s payout ratio is 148.15%.

Insider Activity

In other news, CEO Ishbia Mat sold 1,003,333 shares of the business’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $3.57, for a total transaction of $3,581,898.81. Following the transaction, the chief executive officer directly owned 2,995,754 shares in the company, valued at $10,694,841.78. The trade was a 25.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 26,841,256 shares of company stock worth $98,809,960 in the last quarter. Insiders own 80.30% of the company’s stock.

Institutional Trading of UWM

Several institutional investors and hedge funds have recently modified their holdings of UWMC. Vanguard Group Inc. lifted its stake in shares of UWM by 9.7% during the fourth quarter. Vanguard Group Inc. now owns 18,959,442 shares of the company’s stock valued at $83,042,000 after buying an additional 1,676,754 shares during the period. Azora Capital LP grew its holdings in UWM by 230.8% during the 4th 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 in the last quarter. Brandes Investment Partners LP bought a new position in UWM during the 4th quarter valued at $45,867,000. Bank of America Corp DE boosted its stake in UWM by 127.4% during the 1st quarter. Bank of America Corp DE now owns 6,969,809 shares of the company’s stock valued at $25,231,000 after acquiring an additional 3,905,286 shares during the last quarter. Finally, Balyasny Asset Management L.P. boosted its stake in UWM by 116.6% during the 2nd quarter. Balyasny Asset Management L.P. now owns 5,991,072 shares of the company’s stock valued at $24,803,000 after acquiring an additional 3,224,806 shares during the last quarter. Hedge funds and other institutional investors own 53.59% of the company’s stock.

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.