UWM (NYSE:UWMC) Shares Down 13.5% – Should You Sell?

UWM Holdings Corporation (NYSE:UWMC) dropped 13.5% on Friday . The stock traded as low as $5.03 and last traded at $4.93. Approximately 3,845,282 shares were traded during mid-day trading, a decline of 78% from the average daily volume of 17,155,586 shares. The stock had previously closed at $5.70.

Analyst Ratings Changes

Several analysts have recently issued reports on the company. The Goldman Sachs Group set a $5.00 target price on UWM in a report on Tuesday, January 6th. Keefe, Bruyette & Woods upped their price objective on shares of UWM from $6.50 to $6.75 and gave the stock a “market perform” rating in a research report on Thursday, December 18th. Morgan Stanley set a $6.00 target price on shares of UWM in a report on Tuesday, December 16th. UBS Group upped their price target on shares of UWM from $5.50 to $6.00 and gave the stock a “neutral” rating in a report on Wednesday, November 12th. Finally, Barclays increased their price target on shares of UWM from $6.00 to $7.00 and gave the stock an “overweight” rating in a research report on Monday, October 6th. Two research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $6.53.

UWM Trading Down 14.0%

The business’s 50 day simple moving average is $5.28 and its two-hundred day simple moving average is $5.40. The company has a debt-to-equity ratio of 2.40, a quick ratio of 1.45 and a current ratio of 1.45.

UWM (NYSE:UWMC) last released its quarterly earnings data on Thursday, November 6th. The company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.06). UWM had a net margin of 0.61% and a negative return on equity of 6.81%. The firm had revenue of $151.14 million for the quarter, compared to analyst estimates of $651.51 million. As a group, sell-side analysts predict that UWM Holdings Corporation will post 0.2 earnings per share for the current year.

UWM Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, January 8th. Investors of record on Thursday, December 18th were issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 8.2%. The ex-dividend date was Thursday, December 18th.

Insiders Place Their Bets

In other UWM news, CEO Ishbia Mat sold 632,874 shares of the company’s stock in a transaction that occurred on Wednesday, January 28th. The shares were sold at an average price of $5.89, for a total value of $3,727,627.86. Following the completion of the transaction, the chief executive officer directly owned 2,155,265 shares in the company, valued at approximately $12,694,510.85. This represents a 22.70% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Over the last 90 days, insiders have sold 19,787,071 shares of company stock worth $105,009,906. Insiders own 87.50% of the company’s stock.

Institutional Trading of UWM

Large investors have recently bought and sold shares of the business. Allworth Financial LP boosted its position in shares of UWM by 5,681.9% during the 3rd quarter. Allworth Financial LP now owns 4,163 shares of the company’s stock valued at $25,000 after purchasing an additional 4,091 shares in the last quarter. GAMMA Investing LLC lifted its stake in UWM by 408.7% in the third quarter. GAMMA Investing LLC now owns 5,407 shares of the company’s stock valued at $33,000 after buying an additional 4,344 shares during the period. Advisory Services Network LLC acquired a new position in UWM in the third quarter valued at approximately $38,000. Raymond James Financial Inc. bought a new position in shares of UWM during the 2nd quarter worth approximately $35,000. Finally, Farther Finance Advisors LLC grew its position in shares of UWM by 1,410.7% during the 4th quarter. Farther Finance Advisors LLC now owns 8,596 shares of the company’s stock worth $38,000 after buying an additional 8,027 shares during the period. 53.59% of the stock is currently owned by institutional investors and hedge funds.

About UWM

United Wholesale Mortgage (NYSE: UWMC) is a leading mortgage lender in the United States specializing in the wholesale channel. The company partners with independent mortgage brokers, community banks and credit unions to offer a full suite of residential mortgage products. Through its network of third-party originators, United Wholesale Mortgage underwrites, funds and closes loans, allowing its partners to focus on customer acquisition and service.

The company’s product offerings include conventional fixed- and adjustable-rate mortgages, Federal Housing Administration (FHA) loans, Veterans Affairs (VA) loans, U.S.