UWM (NYSE:UWMC) Stock Price Down 7.9% – What’s Next?

UWM Holdings Corporation (NYSE:UWMC)’s share price dropped 7.9% during trading on Monday . The company traded as low as $2.05 and last traded at $2.0450. Approximately 13,095,871 shares changed hands during trading, a decline of 32% from the average session volume of 19,156,689 shares. The stock had previously closed at $2.22.

Analyst Ratings Changes

UWMC has been the topic of several research reports. Stephens began coverage on shares of UWM in a report on Friday, April 24th. They issued an “equal weight” rating and a $4.00 price target on the stock. Wall Street Zen upgraded shares of UWM from a “strong sell” rating to a “hold” rating in a research note on Saturday, February 28th. Compass Point initiated coverage on shares of UWM in a report on Tuesday, March 10th. They issued a “buy” rating and a $8.50 price objective on the stock. Zacks Research upgraded shares of UWM from a “strong sell” rating to a “hold” rating in a research note on Monday, March 30th. Finally, Argus raised shares of UWM to a “hold” rating in a report on Tuesday, March 31st. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $5.19.

UWM Trading Down 6.5%

The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 3.13. The firm has a market cap of $3.32 billion, a price-to-earnings ratio of 7.69 and a beta of 1.72. The company has a fifty day moving average price of $3.14 and a 200-day moving average price of $4.14.

UWM (NYSE:UWMC) last posted its earnings results on Wednesday, May 6th. The company reported $0.09 EPS for the quarter, topping the consensus estimate of $0.06 by $0.03. The firm had revenue of $901.43 million for the quarter, compared to analyst estimates of $709.85 million. UWM had a return on equity of 19.01% and a net margin of 1.92%. As a group, research analysts expect that UWM Holdings Corporation will post 0.38 EPS for the current year.

UWM Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 9th. Shareholders of record on Thursday, June 18th will be given a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 19.3%. The ex-dividend date is Thursday, June 18th. UWM’s dividend payout ratio is currently 148.15%.

Insider Activity at UWM

In other news, CEO Ishbia Mat sold 1,003,333 shares of UWM stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $3.39, for a total transaction of $3,401,298.87. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 20,940,338 shares of company stock worth $76,849,387. 80.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Integrated Investment Consultants LLC purchased a new position in UWM in the 3rd quarter valued at about $32,630,000. Tudor Investment Corp ET AL purchased a new stake in shares of UWM during the third quarter worth $12,237,000. Alight Capital Management LP purchased a new stake in UWM during the 3rd quarter valued at about $3,958,000. Vanguard Group Inc. increased its holdings in shares of UWM by 6.2% in the third quarter. Vanguard Group Inc. now owns 17,282,688 shares of the company’s stock valued at $105,252,000 after purchasing an additional 1,010,907 shares during the last quarter. Finally, Luxor Capital Group LP acquired a new stake in shares of UWM in the 3rd quarter worth $7,473,000. Hedge funds and other institutional investors own 53.59% of the company’s stock.

About UWM

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.