UWM (NYSE:UWMC) Cut to “Market Perform” at Keefe, Bruyette & Woods

UWM (NYSE:UWMC) was downgraded by Keefe, Bruyette & Woods from an “outperform” rating to a “market perform” rating in a report released on Wednesday, MarketBeat.com reports. They currently have a $1.50 target price on the stock. Keefe, Bruyette & Woods’ target price points to a potential upside of 25.52% from the company’s previous close.

UWMC has been the subject of several other research reports. Citizens Jmp upgraded UWM from a “market perform” rating to an “outperform” rating and set a $3.00 target price for the company in a research report on Wednesday, July 29th. Weiss Ratings cut UWM from a “sell (d+)” rating to a “sell (d)” rating in a report on Tuesday, August 11th. BTIG Research dropped their price target on UWM from $4.00 to $2.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Barclays cut their price objective on shares of UWM from $4.00 to $2.00 and set an “overweight” rating for the company in a report on Friday, August 7th. Finally, Citigroup upgraded shares of UWM to an “outperform” rating in a research report on Wednesday, July 29th. Five equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, UWM currently has a consensus rating of “Hold” and an average target price of $3.90.

UWM Trading Down 7.4%

Shares of UWM stock opened at $1.20 on Wednesday. UWM has a fifty-two week low of $0.93 and a fifty-two week high of $6.15. The company has a debt-to-equity ratio of 6.05, a quick ratio of 1.64 and a current ratio of 1.64. The company has a market capitalization of $1.92 billion, a P/E ratio of -14.94, a P/E/G ratio of 2.30 and a beta of 1.82. The company has a fifty day moving average of $1.43 and a 200 day moving average of $2.38.

UWM (NYSE:UWMC) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.23) EPS for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.30). UWM had a negative net margin of 1.04% and a negative return on equity of 6.20%. The business had revenue of $888.00 million for the quarter, compared to the consensus estimate of $727.46 million. On average, sell-side analysts anticipate that UWM will post 0.08 earnings per share for the current fiscal year.

Hedge Funds Weigh In On UWM

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bank of America Corp DE grew its stake in shares of UWM by 127.4% in the 1st quarter. Bank of America Corp DE now owns 6,969,809 shares of the company’s stock worth $25,231,000 after buying an additional 3,905,286 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in UWM during the second quarter worth approximately $4,593,000. Squarepoint Ops LLC increased its stake in UWM by 179.6% during the second quarter. Squarepoint Ops LLC now owns 1,774,823 shares of the company’s stock worth $4,064,000 after acquiring an additional 1,140,136 shares during the last quarter. Engineers Gate Manager LP bought a new stake in shares of UWM in the 2nd quarter valued at approximately $1,473,000. Finally, Concentric Capital Strategies LP boosted its holdings in shares of UWM by 507.8% in the 4th quarter. Concentric Capital Strategies LP now owns 2,251,999 shares of the company’s stock worth $9,864,000 after purchasing an additional 1,881,483 shares during the period. 53.59% of the stock is owned by institutional investors.

Key Headlines Impacting UWM

Here are the key news stories impacting UWM this week:

• Positive Sentiment: More borrower-friendly credit-score policy: UWM said it will automatically use a borrower’s best qualifying credit score, eliminating the need for brokers to choose among multiple scores. The change could simplify mortgage applications, improve borrower outcomes and strengthen UWM’s competitive position. UWM to Automatically Use Best Qualifying Credit Score for Borrowers
• Neutral Sentiment: Rights offering planned: UWM launched a rights offering expected to raise up to $400 million. The proceeds could bolster liquidity and support the business, but the ultimate effect depends on pricing, participation and the use of funds. UWM Holdings Launches Rights Offering
• Negative Sentiment: Potential shareholder dilution: The rights offering follows disclosures that UWM suffered more than a $603 million hedging loss connected to its failed bid for Two Harbors Investment Corp. Investors may be concerned that issuing additional shares will reduce the ownership percentage and per-share value of existing holders.
• Negative Sentiment: Multiple securities lawsuits: Several law firms are promoting a class action alleging that UWM and certain executives failed to disclose risks related to an over-hedged mortgage-servicing-rights position and the Two Harbors transaction. The allegations relate to the sharp August 6 selloff, and the October 12–13 lead-plaintiff deadlines are keeping litigation risk in focus. The claims remain allegations, not proven findings. UWMC Investor Reminder and Securities Class Action

About UWM

UWM Holdings Corporation, operating as United Wholesale Mortgage (UWM), is a wholesale mortgage lender headquartered in Pontiac, Michigan. The company provides home loan products and related services through a network of independent mortgage brokers, rather than originating loans primarily through direct-to-consumer channels.

UWM offers a range of residential mortgage products, including conventional, government-backed, jumbo and other home financing options. Its services are supported by digital technology and processing tools designed to help mortgage brokers submit, manage and close loans efficiently.

The company traces its roots to 1986 and serves borrowers throughout the United States through its broker partners.