UWM (NYSE:UWMC) Shares Gap Down Following Weak Earnings

UWM Holdings Co. (NYSE:UWMC) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $4.77, but opened at $4.45. UWM shares last traded at $4.44, with a volume of 674,933 shares trading hands.

The company reported ($0.23) EPS for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.29).

UWM Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 10th. Shareholders of record on Thursday, March 20th were given a $0.10 dividend. The ex-dividend date was Thursday, March 20th. This represents a $0.40 dividend on an annualized basis and a yield of 8.96%. UWM’s dividend payout ratio is currently 500.00%.

Wall Street Analyst Weigh In

UWMC has been the subject of several research analyst reports. UBS Group raised shares of UWM from a “sell” rating to a “neutral” rating and lowered their target price for the stock from $4.75 to $4.50 in a research note on Wednesday, April 16th. Keefe, Bruyette & Woods raised shares of UWM from a “market perform” rating to an “outperform” rating and increased their price target for the stock from $6.50 to $7.50 in a research report on Monday, March 3rd. Finally, Wedbush reissued a “neutral” rating and issued a $6.50 price target on shares of UWM in a research report on Monday, March 3rd. Five analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $7.21.

Institutional Trading of UWM

Hedge funds have recently modified their holdings of the business. HB Wealth Management LLC lifted its holdings in UWM by 23.0% in the fourth quarter. HB Wealth Management LLC now owns 14,053 shares of the company’s stock valued at $82,000 after acquiring an additional 2,631 shares during the period. GAMMA Investing LLC boosted its position in UWM by 101.8% during the first quarter. GAMMA Investing LLC now owns 5,863 shares of the company’s stock worth $32,000 after purchasing an additional 2,958 shares in the last quarter. Sherbrooke Park Advisers LLC boosted its stake in shares of UWM by 17.4% during the 4th quarter. Sherbrooke Park Advisers LLC now owns 20,038 shares of the company’s stock worth $118,000 after purchasing an additional 2,975 shares during the last quarter. Mariner LLC raised its holdings in UWM by 5.1% in the 4th quarter. Mariner LLC now owns 64,455 shares of the company’s stock valued at $378,000 after acquiring an additional 3,126 shares during the last quarter. Finally, Victory Capital Management Inc. grew its position in shares of UWM by 20.7% in the fourth quarter. Victory Capital Management Inc. now owns 20,330 shares of the company’s stock valued at $119,000 after purchasing an additional 3,488 shares during the period. 53.59% of the stock is owned by institutional investors and hedge funds.

UWM Price Performance

The company has a 50-day moving average of $5.32 and a two-hundred day moving average of $5.87. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.40 and a quick ratio of 1.40. The stock has a market capitalization of $7.14 billion, a PE ratio of -19.41 and a beta of 1.75.

UWM Company Profile

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.