UWM (NYSE:UWMC) Reaches New 12-Month Low – What’s Next?

UWM Holdings Corporation (NYSE:UWMC)’s stock price reached 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.

Analyst Ratings Changes

UWMC has been the subject of several recent analyst reports. Argus upgraded shares of UWM to a “hold” rating in a research note on Tuesday, March 31st. Jefferies Financial Group set a $4.40 price target on shares of UWM in a report on Wednesday, February 25th. Weiss Ratings raised UWM from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, May 12th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $5.50 price objective on shares of UWM in a research report on Thursday, May 7th. Finally, Barclays dropped their target price on UWM from $6.00 to $5.00 and set an “overweight” rating on the stock in a research note on Monday, April 6th. Three research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $5.79.

UWM Trading Down 0.6%

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 stock has a 50-day simple moving average of $3.29 and a 200 day simple moving average of $4.27. The company has a market cap of $3.80 billion, a price-to-earnings ratio of 8.80 and a beta of 1.72.

UWM (NYSE:UWMC) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.06 by $0.03. The company had revenue of $901.43 million during the quarter, compared to analyst estimates 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 predict that UWM Holdings Corporation will post 0.38 EPS for the current fiscal year.

UWM Dividend Announcement

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 paid a dividend of $0.10 per share. The ex-dividend date of this dividend is Thursday, June 18th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 16.8%. UWM’s dividend payout ratio (DPR) is presently 148.15%.

Insider Buying and Selling at UWM

In other UWM news, CEO Ishbia Mat sold 1,003,333 shares of UWM stock in a transaction on Monday, May 4th. The shares were sold at an average price of $3.57, for a total value of $3,581,898.81. Following the completion of the transaction, the chief executive officer owned 2,995,754 shares of the company’s stock, valued at approximately $10,694,841.78. The trade was a 25.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 24,942,634 shares of company stock worth $91,607,854. 80.30% of the stock is owned by insiders.

Institutional Investors Weigh In On UWM

A number of institutional investors have recently modified their holdings of UWMC. Dimensional Fund Advisors LP lifted its position in shares of UWM by 4.4% during the 4th quarter. Dimensional Fund Advisors LP now owns 55,509 shares of the company’s stock valued at $243,000 after buying an additional 2,329 shares in the last quarter. Public Employees Retirement System of Ohio lifted its holdings in UWM by 4.9% during the fourth quarter. Public Employees Retirement System of Ohio now owns 51,423 shares of the company’s stock valued at $225,000 after purchasing an additional 2,407 shares in the last quarter. Allworth Financial LP lifted its holdings in UWM by 62.5% during the fourth quarter. Allworth Financial LP now owns 6,765 shares of the company’s stock valued at $30,000 after purchasing an additional 2,602 shares in the last quarter. Choreo LLC grew its position in shares of UWM by 16.1% in the fourth quarter. Choreo LLC now owns 19,017 shares of the company’s stock valued at $84,000 after purchasing an additional 2,637 shares during the period. Finally, State of Wyoming increased its stake in shares of UWM by 24.9% during the third quarter. State of Wyoming now owns 14,552 shares of the company’s stock worth $89,000 after purchasing an additional 2,902 shares in the last quarter. 53.59% of the stock is currently owned by institutional investors and hedge funds.

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.