UWM (NYSE:UWMC) Reaches New 1-Year Low After Insider Selling

Shares of UWM Holdings Corporation (NYSE:UWMC) hit a new 52-week low during mid-day trading on Wednesday following insider selling activity. The company traded as low as $3.80 and last traded at $3.86, with a volume of 810583 shares trading hands. The stock had previously closed at $3.84.

Specifically, CEO Ishbia Mat sold 400,036 shares of the company’s stock in a transaction dated Tuesday, June 17th. The shares were sold at an average price of $3.99, for a total value of $1,596,143.64. Following the transaction, the chief executive officer now directly owns 4,099,964 shares in the company, valued at approximately $16,358,856.36. This represents a 8.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. Wedbush restated a “neutral” rating and issued a $6.50 price target on shares of UWM in a report on Monday, March 3rd. UBS Group raised shares of UWM from a “sell” rating to a “neutral” rating and lowered their price objective for the stock from $4.75 to $4.50 in a research note on Wednesday, April 16th. Keefe, Bruyette & Woods lowered their price objective on shares of UWM from $7.50 to $6.50 and set an “outperform” rating for the company in a research note on Wednesday, May 7th. Finally, The Goldman Sachs Group lowered their price objective on shares of UWM from $7.00 to $6.00 and set a “neutral” rating for the company in a research note on Wednesday, May 7th. Five analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $6.86.

UWM Trading Up 1.1%

The firm has a market capitalization of $6.37 billion, a PE ratio of -30.65 and a beta of 1.70. The company’s 50-day simple moving average is $4.30 and its 200 day simple moving average is $5.38. The company has a quick ratio of 1.50, a current ratio of 1.50 and a debt-to-equity ratio of 1.87.

UWM (NYSE:UWMC) last announced its quarterly earnings data on Tuesday, May 6th. The company reported ($0.23) EPS for the quarter, missing the consensus estimate of $0.06 by ($0.29). The company had revenue of $613.37 million during the quarter, compared to analysts’ expectations of $558.80 million. UWM had a negative net margin of 0.36% and a negative return on equity of 3.86%. As a group, sell-side analysts expect that UWM Holdings Corporation will post 0.2 EPS for the current year.

UWM Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 10th. Investors of record on Wednesday, June 18th will be issued a $0.10 dividend. The ex-dividend date is Wednesday, June 18th. This represents a $0.40 annualized dividend and a yield of 10.04%. UWM’s dividend payout ratio (DPR) is presently -307.69%.

Hedge Funds Weigh In On UWM

Several hedge funds and other institutional investors have recently bought and sold shares of UWMC. First Trust Advisors LP increased its holdings in UWM by 886.9% in the 4th quarter. First Trust Advisors LP now owns 3,727,477 shares of the company’s stock worth $21,880,000 after buying an additional 3,349,779 shares during the period. Vanguard Group Inc. lifted its position in shares of UWM by 37.6% during the 4th quarter. Vanguard Group Inc. now owns 11,764,910 shares of the company’s stock valued at $69,060,000 after buying an additional 3,212,081 shares in the last quarter. AQR Capital Management LLC lifted its position in shares of UWM by 1,144.7% during the 1st quarter. AQR Capital Management LLC now owns 2,496,805 shares of the company’s stock valued at $13,633,000 after buying an additional 2,296,205 shares in the last quarter. Basswood Capital Management L.L.C. purchased a new position in shares of UWM during the 4th quarter valued at approximately $6,602,000. Finally, EMG Holdings L.P. purchased a new position in UWM in the 4th quarter valued at $2,597,000. Institutional investors and hedge funds own 53.59% of the company’s stock.

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.