UWM (NYSE:UWMC) Stock Rating Lowered by Keefe, Bruyette & Woods

UWM (NYSE:UWMC) was downgraded by equities research analysts at Keefe, Bruyette & Woods from an “outperform” rating to a “market perform” rating in a note issued to investors on Wednesday, MarketBeat reports. They presently have a $1.50 price objective on the stock. Keefe, Bruyette & Woods’ target price would suggest a potential upside of 25.52% from the company’s previous close.

A number of other research analysts also recently issued reports on the company. Zacks Research downgraded UWM from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 5th. Weiss Ratings lowered UWM from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday, August 11th. Morgan Stanley lowered their target price on shares of UWM from $5.00 to $3.00 and set an “equal weight” rating on the stock in a research note on Monday, July 20th. Citigroup raised shares of UWM to an “outperform” rating in a report on Wednesday, July 29th. Finally, Barclays reduced their price target on shares of UWM from $4.00 to $2.00 and set an “overweight” rating for the company in a research note on Friday, August 7th. Five research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $3.90.

UWM Price Performance

Shares of UWMC opened at $1.20 on Wednesday. UWM has a twelve month low of $0.93 and a twelve month high of $6.15. The company has a market capitalization of $1.92 billion, a P/E ratio of -14.94, a price-to-earnings-growth ratio of 2.30 and a beta of 1.82. The firm has a 50 day moving average of $1.43 and a 200 day moving average of $2.38. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 6.05.

UWM (NYSE:UWMC) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.23) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.30). The business had revenue of $888.00 million during the quarter, compared to the consensus estimate of $727.46 million. UWM had a negative net margin of 1.04% and a negative return on equity of 6.20%. As a group, equities research analysts anticipate that UWM will post 0.08 earnings per share for the current fiscal year.

Institutional Investors Weigh In On UWM

Hedge funds and other institutional investors have recently modified their holdings of the stock. Kera Capital Partners Inc. purchased a new stake in UWM in the fourth quarter worth about $47,000. Meeder Advisory Services Inc. bought a new position in shares of UWM during the 2nd quarter valued at approximately $25,000. Fifth Third Bancorp bought a new position in shares of UWM during the 1st quarter valued at approximately $41,000. Caitong International Asset Management Co. Ltd increased its holdings in UWM by 1,570.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 12,191 shares of the company’s stock worth $53,000 after acquiring an additional 11,461 shares in the last quarter. Finally, Bull Harbor Capital LLC purchased a new stake in UWM in the 1st quarter worth approximately $45,000. 53.59% of the stock is currently owned by hedge funds and other institutional investors.

More UWM News

Here are the key news stories impacting UWM this week:

• Positive Sentiment: More borrower-friendly credit-score policy: UWM said it will automatically use a borrower’s best qualifying credit score, eliminating the need for brokers to choose among multiple scores. The change could simplify mortgage applications, improve borrower outcomes and strengthen UWM’s competitive position. UWM to Automatically Use Best Qualifying Credit Score for Borrowers
• Neutral Sentiment: Rights offering planned: UWM launched a rights offering expected to raise up to $400 million. The proceeds could bolster liquidity and support the business, but the ultimate effect depends on pricing, participation and the use of funds. UWM Holdings Launches Rights Offering
• Negative Sentiment: Potential shareholder dilution: The rights offering follows disclosures that UWM suffered more than a $603 million hedging loss connected to its failed bid for Two Harbors Investment Corp. Investors may be concerned that issuing additional shares will reduce the ownership percentage and per-share value of existing holders.
• Negative Sentiment: Multiple securities lawsuits: Several law firms are promoting a class action alleging that UWM and certain executives failed to disclose risks related to an over-hedged mortgage-servicing-rights position and the Two Harbors transaction. The allegations relate to the sharp August 6 selloff, and the October 12–13 lead-plaintiff deadlines are keeping litigation risk in focus. The claims remain allegations, not proven findings. UWMC Investor Reminder and Securities Class Action

UWM Company Profile

UWM Holdings Corporation, operating as United Wholesale Mortgage (UWM), is a wholesale mortgage lender headquartered in Pontiac, Michigan. The company provides home loan products and related services through a network of independent mortgage brokers, rather than originating loans primarily through direct-to-consumer channels.

UWM offers a range of residential mortgage products, including conventional, government-backed, jumbo and other home financing options. Its services are supported by digital technology and processing tools designed to help mortgage brokers submit, manage and close loans efficiently.

The company traces its roots to 1986 and serves borrowers throughout the United States through its broker partners.