UWM (NYSE:UWMC) Shares Down 3.8% – Should You Sell?

UWM Holdings Co. (NYSE:UWMC)’s share price traded down 3.8% on Wednesday . The company traded as low as $5.98 and last traded at $6.00. 657,983 shares were traded during mid-day trading, a decline of 67% from the average session volume of 1,971,033 shares. The stock had previously closed at $6.24.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Keefe, Bruyette & Woods raised their target price on shares of UWM from $7.00 to $8.00 and gave the company a “market perform” rating in a research report on Wednesday, August 7th. UBS Group lifted their price objective on shares of UWM from $4.50 to $4.75 and gave the company a “sell” rating in a research report on Thursday, September 5th. The Goldman Sachs Group decreased their price objective on shares of UWM from $8.50 to $7.50 and set a “neutral” rating for the company in a research report on Thursday, November 14th. Barclays raised shares of UWM from an “underweight” rating to an “equal weight” rating and lifted their price objective for the company from $6.00 to $8.00 in a research report on Tuesday, October 8th. Finally, BTIG Research lifted their price objective on shares of UWM from $8.00 to $10.00 and gave the company a “buy” rating in a research report on Tuesday, August 6th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and one has issued a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $7.53.

UWM Stock Performance

The company has a debt-to-equity ratio of 1.06, a current ratio of 1.40 and a quick ratio of 1.40. The company’s 50-day moving average price is $7.34 and its two-hundred day moving average price is $7.67. The company has a market capitalization of $9.51 billion, a price-to-earnings ratio of -27.11 and a beta of 1.67.

UWM Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 9th. Investors of record on Thursday, December 19th will be paid a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a yield of 6.72%. The ex-dividend date is Thursday, December 19th. UWM’s dividend payout ratio is presently -173.91%.

Insider Buying and Selling

In related news, CEO Ishbia Mat sold 1,200,000 shares of the firm’s stock in a transaction dated Monday, September 16th. The shares were sold at an average price of $8.45, for a total transaction of $10,140,000.00. Following the transaction, the chief executive officer now directly owns 171,520 shares of the company’s stock, valued at $1,449,344. This trade represents a 87.49 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 94.11% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in UWMC. Quadrature Capital Ltd lifted its position in shares of UWM by 124.3% during the first quarter. Quadrature Capital Ltd now owns 54,778 shares of the company’s stock valued at $397,000 after purchasing an additional 30,361 shares in the last quarter. Price T Rowe Associates Inc. MD increased its holdings in UWM by 5.9% during the first quarter. Price T Rowe Associates Inc. MD now owns 57,948 shares of the company’s stock worth $421,000 after buying an additional 3,207 shares during the last quarter. CWM LLC increased its holdings in UWM by 96.4% during the second quarter. CWM LLC now owns 6,471 shares of the company’s stock worth $45,000 after buying an additional 3,177 shares during the last quarter. SG Americas Securities LLC increased its holdings in UWM by 1,743.3% during the second quarter. SG Americas Securities LLC now owns 239,830 shares of the company’s stock worth $1,662,000 after buying an additional 226,819 shares during the last quarter. Finally, Wedmont Private Capital increased its holdings in UWM by 29.6% during the second quarter. Wedmont Private Capital now owns 18,150 shares of the company’s stock worth $139,000 after buying an additional 4,147 shares during the last quarter. 53.59% of the stock is owned by institutional investors.

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.