UWM (NYSE:UWMC) Stock Price Down 4.2% – Should You Sell?

UWM Holdings Corporation (NYSE:UWMC) shares traded down 4.2% during mid-day trading on Wednesday . The stock traded as low as $1.49 and last traded at $1.4650. Approximately 2,734,566 shares traded hands during mid-day trading, a decline of 86% from the average daily volume of 19,938,178 shares. The stock had previously closed at $1.53.

Analyst Ratings Changes

Several research firms have issued reports on UWMC. BTIG Research decreased their price objective on shares of UWM from $4.00 to $2.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Keefe, Bruyette & Woods decreased their target price on shares of UWM from $3.75 to $2.75 and set an “outperform” rating on the stock in a research note on Monday. Weiss Ratings lowered UWM from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, June 15th. Stephens cut their price target on UWM from $3.00 to $2.00 and set an “equal weight” rating for the company in a report on Friday, August 7th. Finally, Barclays reduced their price objective on UWM from $4.00 to $2.00 and set an “overweight” rating on the stock in a research report on Friday, August 7th. Six equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $4.01.

UWM Trading Down 2.0%

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’s 50-day moving average is $2.07 and its 200-day moving average is $3.30. The stock has a market capitalization of $2.40 billion, a price-to-earnings ratio of -18.75 and a beta of 1.78.

UWM (NYSE:UWMC) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.23) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.30). The firm had revenue of $162.13 million during the quarter, compared to analysts’ expectations of $727.46 million. UWM had a negative net margin of 1.04% and a negative return on equity of 5.61%. Research analysts anticipate that UWM Holdings Corporation will post 0.24 earnings per share for the current fiscal year.

Institutional Investors Weigh In On UWM

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Allworth Financial LP grew its holdings in shares of UWM by 5,681.9% during the 3rd quarter. Allworth Financial LP now owns 4,163 shares of the company’s stock worth $25,000 after purchasing an additional 4,091 shares during the period. Advisory Services Network LLC acquired a new stake in shares of UWM during the third quarter valued at about $38,000. Raymond James Financial Inc. acquired a new stake in shares of UWM during the second quarter valued at about $35,000. Farther Finance Advisors LLC raised its stake in shares of UWM by 1,410.7% in the 4th quarter. Farther Finance Advisors LLC now owns 8,596 shares of the company’s stock valued at $38,000 after acquiring an additional 8,027 shares during the period. Finally, Focus Partners Wealth purchased a new stake in shares of UWM in the 1st quarter valued at approximately $55,000. Institutional investors and hedge funds 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.