Traders Purchase Large Volume of UWM Call Options (NYSE:UWMC)

UWM Holdings Corporation (NYSE:UWMC) was the recipient of some unusual options trading activity on Tuesday. Stock investors bought 5,109 call options on the stock. This is an increase of 55% compared to the average daily volume of 3,296 call options.

Insider Activity

In related news, CEO Ishbia Mat sold 400,036 shares of the 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 completion of the transaction, the chief executive officer now directly owns 4,099,964 shares of the company’s stock, valued at $16,358,856.36. This represents a 8.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders own 94.11% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Inspire Investing LLC raised its position in shares of UWM by 14.7% during the 1st quarter. Inspire Investing LLC now owns 216,640 shares of the company’s stock valued at $1,183,000 after purchasing an additional 27,751 shares during the period. Focus Partners Wealth bought a new stake in shares of UWM during the 1st quarter valued at $55,000. Dynamic Technology Lab Private Ltd bought a new stake in shares of UWM during the 1st quarter valued at $92,000. AQR Capital Management LLC raised 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 purchasing an additional 2,296,205 shares during the period. Finally, PDT Partners LLC grew its stake in UWM by 330.6% during the first quarter. PDT Partners LLC now owns 146,698 shares of the company’s stock valued at $801,000 after acquiring an additional 112,632 shares in the last quarter. 53.59% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

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

UWM Trading Down 4.0%

NYSE:UWMC opened at $3.94 on Wednesday. UWM has a 52 week low of $3.89 and a 52 week high of $9.74. The company has a quick ratio of 1.50, a current ratio of 1.50 and a debt-to-equity ratio of 1.87. The company’s 50 day moving average price is $4.32 and its 200-day moving average price is $5.41. The stock has a market cap of $6.29 billion, a price-to-earnings ratio of -30.27 and a beta of 1.70.

UWM (NYSE:UWMC) last issued its earnings results on Tuesday, May 6th. The company reported ($0.23) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.06 by ($0.29). UWM had a negative return on equity of 3.86% and a negative net margin of 0.36%. The company had revenue of $613.37 million during the quarter, compared to analysts’ expectations of $558.80 million. On average, equities research analysts forecast that UWM will post 0.2 earnings per share for the current fiscal year.

UWM Dividend Announcement

The business also recently announced 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. This represents a $0.40 annualized dividend and a yield of 10.17%. The ex-dividend date is Wednesday, June 18th. UWM’s dividend payout ratio is currently -307.69%.

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.