UWM (NYSE:UWMC) Sets New 52-Week Low – What’s Next?

UWM Holdings Corporation (NYSE:UWMC) reached a new 52-week low during trading on Wednesday . The stock traded as low as $2.28 and last traded at $2.4350, with a volume of 28081574 shares changing hands. The stock had previously closed at $2.35.

Wall Street Analyst Weigh In

UWMC has been the subject of several analyst reports. Stephens began coverage on shares of UWM in a research note on Friday, April 24th. They issued an “equal weight” rating and a $4.00 target price for the company. Compass Point began coverage on shares of UWM in a research note on Tuesday, March 10th. They issued a “buy” rating and a $8.50 price target for the company. Zacks Research raised shares of UWM from a “strong sell” rating to a “hold” rating in a research report on Monday, March 30th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $5.50 price objective on shares of UWM in a research note on Thursday, May 7th. Finally, Morgan Stanley set a $5.00 target price on shares of UWM in a report on Thursday, May 7th. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, UWM has a consensus rating of “Hold” and an average target price of $5.19.

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 stock’s 50-day simple moving average is $3.24 and its 200 day simple moving average is $4.22. The stock has a market capitalization of $3.90 billion, a P/E ratio of 9.02 and a beta of 1.72.

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

UWM Announces Dividend

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 $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 currently 148.15%.

Insider Transactions at UWM

In other news, CEO Ishbia Mat sold 1,003,333 shares of the business’s stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $3.39, for a total transaction of $3,401,298.87. The sale was disclosed in a legal filing 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 have sold 22,941,486 shares of company stock worth $84,173,589 in the last three months. Company insiders own 80.30% of the company’s stock.

Institutional Trading of UWM

Institutional investors have recently added to or reduced their stakes in the company. Dynamic Technology Lab Private Ltd acquired a new stake in shares of UWM during the first quarter worth $92,000. Focus Partners Wealth acquired a new stake in UWM in the 1st quarter worth about $55,000. Cetera Investment Advisers boosted its holdings in UWM by 20.5% in the 2nd quarter. Cetera Investment Advisers now owns 112,961 shares of the company’s stock valued at $468,000 after purchasing an additional 19,239 shares during the period. Legal & General Group Plc boosted its holdings in UWM by 65.9% in the 2nd quarter. Legal & General Group Plc now owns 180,164 shares of the company’s stock valued at $746,000 after purchasing an additional 71,555 shares during the period. Finally, Rhumbline Advisers grew its position in shares of UWM by 18.5% during the 2nd quarter. Rhumbline Advisers now owns 115,501 shares of the company’s stock worth $478,000 after purchasing an additional 18,034 shares in the last quarter. 53.59% of the stock is currently owned by institutional investors.

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.