UWM (NYSE:UWMC) Stock Price Down 6.3% – Time to Sell?

UWM Holdings Corporation (NYSE:UWMC) shares fell 6.3% on Tuesday . The stock traded as low as $5.73 and last traded at $5.7150. 10,843,290 shares changed hands during trading, a decline of 45% from the average session volume of 19,821,525 shares. The stock had previously closed at $6.10.

Analyst Ratings Changes

Several brokerages have recently issued reports on UWMC. BTIG Research reiterated a “buy” rating and set a $10.00 target price on shares of UWM in a research note on Monday, September 22nd. Keefe, Bruyette & Woods lifted their price objective on shares of UWM from $6.50 to $6.75 and gave the stock a “market perform” rating in a report on Thursday, December 18th. UBS Group raised their price objective on UWM from $5.50 to $6.00 and gave the company a “neutral” rating in a research note on Wednesday, November 12th. Barclays raised their price target on UWM from $6.00 to $7.00 and gave the stock an “overweight” rating in a research note on Monday, October 6th. Finally, The Goldman Sachs Group set a $5.00 price objective on shares of UWM in a research note on Tuesday, January 6th. Two analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $6.53.

UWM Trading Down 5.5%

The company has a debt-to-equity ratio of 2.40, a quick ratio of 1.45 and a current ratio of 1.45. The company’s 50 day moving average is $5.18 and its 200 day moving average is $5.31.

UWM (NYSE:UWMC) last announced its quarterly earnings data on Thursday, November 6th. The company reported $0.01 EPS for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.06). UWM had a negative return on equity of 6.81% and a net margin of 0.61%.The firm had revenue of $151.14 million for the quarter, compared to analysts’ expectations of $651.51 million. Equities analysts expect that UWM Holdings Corporation will post 0.2 EPS for the current fiscal year.

UWM Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, January 8th. Investors of record on Thursday, December 18th were paid a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 6.9%. The ex-dividend date of this dividend was Thursday, December 18th.

Insider Transactions at UWM

In related news, CEO Ishbia Mat sold 632,874 shares of the firm’s stock in a transaction that occurred on Friday, December 26th. The shares were sold at an average price of $4.57, for a total value of $2,892,234.18. Following the sale, the chief executive officer directly owned 2,245,619 shares of the company’s stock, valued at approximately $10,262,478.83. This trade represents a 21.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In the last 90 days, insiders have sold 19,604,481 shares of company stock valued at $103,549,741. 94.11% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On UWM

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Oak Thistle LLC acquired a new position in UWM in the third quarter worth $1,337,000. Hsbc Holdings PLC bought a new position in UWM in the second quarter valued at approximately $792,000. AGF Management Ltd. acquired a new stake in UWM in the 2nd quarter valued at approximately $3,072,000. 683 Capital Management LLC acquired a new position in UWM during the second quarter valued at approximately $19,872,000. Finally, Capital Fund Management S.A. increased its position in UWM by 260.9% during the second quarter. Capital Fund Management S.A. now owns 573,583 shares of the company’s stock worth $2,375,000 after buying an additional 414,667 shares during the last quarter. 53.59% of the stock is currently owned by institutional investors and hedge funds.

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.