UWM Target of Unusually High Options Trading (NYSE:UWMC)

UWM Holdings Co. (NYSE:UWMC) was the recipient of unusually large options trading activity on Tuesday. Traders bought 7,702 call options on the stock. This is an increase of 180% compared to the typical daily volume of 2,755 call options.

UWM Stock Performance

UWM stock traded down $0.50 during mid-day trading on Tuesday, reaching $4.28. The company had a trading volume of 3,667,074 shares, compared to its average volume of 2,946,926. The company has a 50 day moving average of $5.32 and a 200-day moving average of $5.87. UWM has a 52 week low of $4.15 and a 52 week high of $9.74. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.06. The firm has a market cap of $6.83 billion, a price-to-earnings ratio of -18.46 and a beta of 1.75.

UWM (NYSE:UWMC) last released its earnings results on Tuesday, May 6th. The company reported ($0.23) earnings per share for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.29). On average, sell-side analysts expect that UWM will post 0.2 EPS for the current fiscal year.

UWM Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, April 10th. Investors of record on Thursday, March 20th were paid a $0.10 dividend. The ex-dividend date of this dividend was Thursday, March 20th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 9.36%. UWM’s payout ratio is 500.00%.

Institutional Investors Weigh In On UWM

A number of institutional investors have recently bought and sold shares of the business. Y Intercept Hong Kong Ltd bought a new position in shares of UWM during the 1st quarter worth about $262,000. Allianz Asset Management GmbH bought a new position in UWM during the first quarter worth about $133,000. Easterly Investment Partners LLC boosted its holdings in UWM by 50.7% during the first quarter. Easterly Investment Partners LLC now owns 166,510 shares of the company’s stock valued at $909,000 after purchasing an additional 56,010 shares in the last quarter. Victory Capital Management Inc. grew its stake in shares of UWM by 1,773.5% in the 1st quarter. Victory Capital Management Inc. now owns 380,875 shares of the company’s stock valued at $2,080,000 after purchasing an additional 360,545 shares during the period. Finally, Grange Capital LLC acquired a new position in shares of UWM in the 1st quarter worth approximately $71,000. Institutional investors and hedge funds own 53.59% of the company’s stock.

Analysts Set New Price Targets

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

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.