UWM (NYSE:UWMC) Stock Price Down 2% on Insider Selling

UWM Holdings Co. (NYSE:UWMC) shares dropped 2% on Wednesday after an insider sold shares in the company. The company traded as low as $8.76 and last traded at $8.76. Approximately 99,800 shares were traded during mid-day trading, a decline of 94% from the average daily volume of 1,632,659 shares. The stock had previously closed at $8.94.

Specifically, CEO Ishbia Mat sold 1,200,000 shares of the firm’s stock in a transaction on Monday, September 16th. The stock was sold at an average price of $8.45, for a total value of $10,140,000.00. Following the sale, the chief executive officer now owns 171,520 shares of the company’s stock, valued at approximately $1,449,344. The sale was disclosed in a document filed with the SEC, which is available at the SEC website.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on UWMC. Barclays upped their price objective on shares of UWM from $5.00 to $6.00 and gave the stock an “underweight” rating in a research report on Tuesday, July 9th. The Goldman Sachs Group raised their price objective on UWM from $7.50 to $8.50 and gave the company a “neutral” rating in a report on Thursday, August 8th. BTIG Research upped their target price on UWM from $8.00 to $10.00 and gave the stock a “buy” rating in a report on Tuesday, August 6th. Keefe, Bruyette & Woods boosted their price target on UWM from $7.00 to $8.00 and gave the stock a “market perform” rating in a report on Wednesday, August 7th. Finally, Wedbush lifted their target price on shares of UWM from $7.00 to $8.50 and gave the stock a “neutral” rating in a research report on Wednesday, August 7th. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $7.39.

UWM Price Performance

The company has a current ratio of 1.48, a quick ratio of 1.48 and a debt-to-equity ratio of 0.87. The stock has a market cap of $852.56 million, a P/E ratio of 297.33 and a beta of 1.63. The business has a 50-day simple moving average of $8.67 and a 200 day simple moving average of $7.51.

UWM (NYSE:UWMC) last announced its earnings results on Tuesday, August 6th. The company reported $0.04 EPS for the quarter, missing the consensus estimate of $0.06 by ($0.02). The company had revenue of $507.09 million during the quarter, compared to analyst estimates of $540.31 million. During the same quarter in the previous year, the firm earned $0.11 EPS. On average, analysts forecast that UWM Holdings Co. will post 0.28 earnings per share for the current year.

UWM Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 10th. Stockholders of record on Thursday, September 19th will be given a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 4.48%. The ex-dividend date is Thursday, September 19th. UWM’s dividend payout ratio (DPR) is presently 1,333.33%.

Hedge Funds Weigh In On UWM

Several hedge funds and other institutional investors have recently bought and sold shares of UWMC. Susquehanna Fundamental Investments LLC increased its holdings in UWM by 334.5% in the second quarter. Susquehanna Fundamental Investments LLC now owns 224,681 shares of the company’s stock worth $1,557,000 after purchasing an additional 172,969 shares in the last quarter. AQR Capital Management LLC increased its stake in shares of UWM by 203.7% in the 2nd quarter. AQR Capital Management LLC now owns 258,883 shares of the company’s stock valued at $1,784,000 after acquiring an additional 173,652 shares in the last quarter. Squarepoint Ops LLC increased its stake in shares of UWM by 24.5% in the 2nd quarter. Squarepoint Ops LLC now owns 342,322 shares of the company’s stock valued at $2,372,000 after acquiring an additional 67,383 shares in the last quarter. Xponance Inc. acquired a new position in shares of UWM during the 2nd quarter valued at $76,000. Finally, Frank Rimerman Advisors LLC acquired a new stake in UWM in the second quarter worth $93,000. 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.