UWM (NYSE:UWMC) Shares Down 5.2% – Should You Sell?

UWM Holdings Corporation (NYSE:UWMC) shares traded down 5.2% during trading on Friday . The stock traded as low as $3.77 and last traded at $3.7150. 583,806 shares changed hands during mid-day trading, a decline of 97% from the average session volume of 18,506,246 shares. The stock had previously closed at $3.92.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on UWMC shares. Morgan Stanley set a $6.00 price target on shares of UWM in a research report on Tuesday, December 16th. Compass Point started coverage on shares of UWM in a research note on Tuesday, March 10th. They issued a “buy” rating and a $8.50 price objective on the stock. Keefe, Bruyette & Woods decreased their price target on shares of UWM from $6.75 to $6.00 and set a “market perform” rating on the stock in a research note on Friday, February 27th. BTIG Research reiterated a “buy” rating and set a $10.00 price target on shares of UWM in a research note on Tuesday, March 10th. Finally, Wall Street Zen raised UWM from a “strong sell” rating to a “hold” rating in a report on Saturday, February 28th. Three research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $6.36.

UWM Trading Down 6.0%

The business has a 50 day moving average of $4.19 and a 200-day moving average of $5.01. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 2.64. The firm has a market capitalization of $5.90 billion, a P/E ratio of 61.58 and a beta of 1.93.

UWM (NYSE:UWMC) last released its quarterly earnings results on Wednesday, February 25th. The company reported $0.08 earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.01). UWM had a negative return on equity of 1.35% and a net margin of 0.87%.The firm had revenue of $945.25 million for the quarter, compared to analyst estimates of $759.12 million. Analysts anticipate that UWM Holdings Corporation will post 0.2 EPS for the current fiscal year.

UWM Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, April 9th. Shareholders of record on Thursday, March 19th were issued a dividend of $0.10 per share. The ex-dividend date of this dividend was Thursday, March 19th. This represents a $0.40 annualized dividend and a yield of 10.9%. UWM’s dividend payout ratio (DPR) is currently 666.67%.

Insider Buying and Selling at UWM

In other news, CEO Ishbia Mat sold 1,000,574 shares of UWM stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $3.87, for a total transaction of $3,872,221.38. Following the completion of the sale, the chief executive officer owned 7,326,413 shares of the company’s stock, valued at approximately $28,353,218.31. This trade represents a 12.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 24,561,842 shares of company stock worth $107,798,721 over the last three months. 87.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Corient Private Wealth LLC boosted its stake in shares of UWM by 258.0% during the fourth quarter. Corient Private Wealth LLC now owns 103,471 shares of the company’s stock valued at $453,000 after purchasing an additional 74,565 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in UWM by 1,570.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 12,191 shares of the company’s stock worth $53,000 after purchasing an additional 11,461 shares in the last quarter. Kera Capital Partners Inc. bought a new stake in UWM in the fourth quarter worth approximately $47,000. Virtu Financial LLC bought a new stake in UWM in the fourth quarter worth approximately $1,799,000. Finally, Invesco Ltd. increased its holdings in shares of UWM by 504.1% during the fourth quarter. Invesco Ltd. now owns 1,498,979 shares of the company’s stock valued at $6,566,000 after acquiring an additional 1,250,845 shares in the last quarter. Institutional investors own 53.59% of the company’s stock.

UWM Company Profile

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.