UWM (NYSE:UWMC) Sets New 52-Week Low – Should You Sell?

UWM Holdings Corporation (NYSE:UWMC) shares hit a new 52-week low on Thursday . The company traded as low as $2.37 and last traded at $2.4450, with a volume of 29539981 shares changing hands. The stock had previously closed at $2.48.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the stock. Argus raised shares of UWM to a “hold” rating in a report on Tuesday, March 31st. Wall Street Zen raised shares of UWM from a “strong sell” rating to a “hold” rating in a report on Saturday, February 28th. BTIG Research reissued a “buy” rating and set a $10.00 price objective on shares of UWM in a report on Tuesday, March 10th. Weiss Ratings raised shares of UWM from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, May 12th. Finally, Zacks Research raised shares of UWM from a “strong sell” rating to a “hold” rating in a report on Monday, March 30th. Three investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $5.79.

UWM Stock Performance

The company has a debt-to-equity ratio of 3.13, a current ratio of 1.52 and a quick ratio of 1.52. The company has a market capitalization of $3.91 billion, a PE ratio of 9.06 and a beta of 1.72. The firm’s fifty day simple moving average is $3.34 and its 200 day simple moving average is $4.30.

UWM (NYSE:UWMC) last posted 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. 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 analyst estimates of $709.85 million. On average, research analysts predict that UWM Holdings Corporation will post 0.38 EPS for the current year.

UWM Dividend Announcement

The firm 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 $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 16.4%. The ex-dividend date of this dividend is Thursday, June 18th. UWM’s dividend payout ratio is presently 148.15%.

Insider Buying and Selling

In other UWM news, CEO Ishbia Mat sold 1,003,333 shares of the company’s stock in a transaction on Friday, May 8th. The shares were sold at an average price of $3.39, for a total value of $3,401,298.87. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 25,575,508 shares of company stock valued at $93,943,159 over the last 90 days. 80.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Allworth Financial LP raised its position in shares of UWM by 5,681.9% in the third quarter. Allworth Financial LP now owns 4,163 shares of the company’s stock worth $25,000 after acquiring an additional 4,091 shares during the period. Raymond James Financial Inc. acquired a new position in shares of UWM in the second quarter worth about $35,000. Farther Finance Advisors LLC raised its position in shares of UWM by 1,410.7% in the fourth quarter. Farther Finance Advisors LLC now owns 8,596 shares of the company’s stock worth $38,000 after acquiring an additional 8,027 shares during the period. Advisory Services Network LLC acquired a new position in shares of UWM in the third quarter worth about $38,000. Finally, Fifth Third Bancorp acquired a new position in shares of UWM in the first quarter worth about $41,000. 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.