UWM (NYSE:UWMC) Trading Up 6.6% – Should You Buy?

Shares of UWM Holdings Co. (NYSE:UWMC) rose 6.6% during mid-day trading on Wednesday . The company traded as high as $5.55 and last traded at $5.71. Approximately 439,191 shares changed hands during mid-day trading, a decline of 83% from the average daily volume of 2,626,200 shares. The stock had previously closed at $5.35.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on UWMC. Keefe, Bruyette & Woods upgraded shares of UWM from a “market perform” rating to an “outperform” rating and lifted their price objective for the company from $6.50 to $7.50 in a research report on Monday, March 3rd. Morgan Stanley cut their target price on UWM from $7.50 to $6.50 and set an “equal weight” rating on the stock in a research note on Thursday, December 19th. Finally, Wedbush reiterated a “neutral” rating and set a $6.50 price target on shares of UWM in a research report on Monday, March 3rd. One analyst has rated the stock with a sell rating, four have given a hold rating and two have given a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $7.25.

UWM Price Performance

The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.06. The company has a 50 day moving average of $6.11 and a two-hundred day moving average of $6.45. The firm has a market cap of $8.89 billion, a P/E ratio of -24.20 and a beta of 1.64.

UWM (NYSE:UWMC) last posted its quarterly earnings results on Wednesday, February 26th. The company reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.06). The business had revenue of $560.21 million for the quarter, compared to analysts’ expectations of $645.75 million. Sell-side analysts expect that UWM Holdings Co. will post 0.2 EPS for the current year.

UWM Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 10th. Investors of record on Thursday, March 20th will be paid a $0.10 dividend. The ex-dividend date is Thursday, March 20th. This represents a $0.40 dividend on an annualized basis and a yield of 7.19%. UWM’s dividend payout ratio is currently 500.00%.

Hedge Funds Weigh In On UWM

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in UWMC. First Trust Advisors LP lifted its holdings in shares of UWM by 886.9% in the fourth quarter. First Trust Advisors LP now owns 3,727,477 shares of the company’s stock valued at $21,880,000 after purchasing an additional 3,349,779 shares in the last quarter. Vanguard Group Inc. increased its holdings in shares of UWM by 37.6% in the 4th quarter. Vanguard Group Inc. now owns 11,764,910 shares of the company’s stock valued at $69,060,000 after purchasing an additional 3,212,081 shares during the period. FMR LLC boosted its holdings in shares of UWM by 24.5% during the third quarter. FMR LLC now owns 10,218,728 shares of the company’s stock worth $87,064,000 after purchasing an additional 2,010,985 shares during the period. Basswood Capital Management L.L.C. acquired a new stake in shares of UWM during the fourth quarter worth approximately $6,602,000. Finally, Tidal Investments LLC purchased a new position in UWM during the third quarter valued at approximately $3,833,000. Institutional investors and hedge funds own 53.59% of the company’s stock.

UWM Company Profile

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.