UWM Holdings Corporation (NYSE:UWMC) Given Consensus Recommendation of “Hold” by Brokerages

Shares of UWM Holdings Corporation (NYSE:UWMC) have earned a consensus rating of “Hold” from the seven brokerages that are presently covering the stock, Marketbeat Ratings reports. Five investment analysts have rated the stock with a hold recommendation and two have given a buy recommendation to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $6.75.

A number of analysts recently issued reports on the company. Keefe, Bruyette & Woods cut their price objective on UWM from $7.50 to $6.50 and set an “outperform” rating for the company in a research report on Wednesday, May 7th. UBS Group raised UWM from a “sell” rating to a “neutral” rating and dropped their target price for the company from $4.75 to $4.50 in a research report on Wednesday, April 16th. Finally, The Goldman Sachs Group dropped their target price on UWM from $6.00 to $5.25 and set a “neutral” rating for the company in a research report on Wednesday.

UWM Stock Down 0.5%

Shares of NYSE:UWMC opened at $4.27 on Friday. The business has a 50-day moving average price of $4.23 and a 200 day moving average price of $5.23. The company has a current ratio of 1.50, a quick ratio of 1.50 and a debt-to-equity ratio of 1.87. The company has a market capitalization of $6.83 billion, a price-to-earnings ratio of -32.85 and a beta of 1.68. UWM has a 12-month low of $3.80 and a 12-month high of $9.74.

UWM (NYSE:UWMC) last issued its quarterly earnings data on Tuesday, May 6th. The company reported ($0.23) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.29). The business had revenue of $613.37 million for the quarter, compared to analyst estimates of $558.80 million. UWM had a negative return on equity of 3.86% and a negative net margin of 0.36%. Sell-side analysts expect that UWM will post 0.2 EPS for the current year.

UWM Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 10th. Stockholders of record on Wednesday, June 18th will be paid a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 9.37%. The ex-dividend date is Wednesday, June 18th. UWM’s payout ratio is presently -307.69%.

Insider Activity

In other news, CEO Ishbia Mat sold 400,036 shares of UWM stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $4.13, for a total value of $1,652,148.68. Following the completion of the transaction, the chief executive officer owned 899,676 shares in the company, valued at approximately $3,715,661.88. This trade represents a 30.78% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. In the last three months, insiders sold 2,400,216 shares of company stock valued at $9,800,882. Company insiders own 87.50% of the company’s stock.

Hedge Funds Weigh In On UWM

Several hedge funds and other institutional investors have recently made changes to their positions in UWMC. First Trust Advisors LP boosted its stake in shares of UWM by 886.9% in the 4th quarter. First Trust Advisors LP now owns 3,727,477 shares of the company’s stock valued at $21,880,000 after buying an additional 3,349,779 shares during the period. Vanguard Group Inc. lifted its stake in UWM by 37.6% during the fourth quarter. Vanguard Group Inc. now owns 11,764,910 shares of the company’s stock worth $69,060,000 after purchasing an additional 3,212,081 shares during the last quarter. AQR Capital Management LLC lifted its stake in UWM by 1,144.7% during the first quarter. AQR Capital Management LLC now owns 2,496,805 shares of the company’s stock worth $13,633,000 after purchasing an additional 2,296,205 shares during the last quarter. Basswood Capital Management L.L.C. purchased a new stake in UWM during the fourth quarter worth approximately $6,602,000. Finally, EMG Holdings L.P. purchased a new stake in UWM during the fourth quarter worth approximately $2,597,000. Hedge funds and other institutional investors own 53.59% of the company’s stock.

About UWM

UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.