UWM (NYSE:UWMC) Sets New 12-Month Low After Analyst Downgrade

UWM Holdings Co. (NYSE:UWMC) shares reached a new 52-week low on Thursday after Morgan Stanley lowered their price target on the stock from $7.50 to $6.50. Morgan Stanley currently has an equal weight rating on the stock. UWM traded as low as $5.57 and last traded at $5.65, with a volume of 309297 shares trading hands. The stock had previously closed at $5.64.

Several other research analysts also recently issued reports on UWMC. Barclays upgraded shares of UWM from an “underweight” rating to an “equal weight” rating and boosted their price objective for the stock from $6.00 to $8.00 in a report on Tuesday, October 8th. Keefe, Bruyette & Woods cut their price target on UWM from $9.00 to $7.00 and set a “market perform” rating for the company in a report on Tuesday, December 10th. UBS Group lifted their price objective on UWM from $4.50 to $4.75 and gave the stock a “sell” rating in a report on Thursday, September 5th. Finally, The Goldman Sachs Group cut their target price on UWM from $8.50 to $7.50 and set a “neutral” rating for the company in a research note on Thursday, November 14th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat, UWM has a consensus rating of “Hold” and an average price target of $7.28.

Hedge Funds Weigh In On UWM

A number of institutional investors and hedge funds have recently added to or reduced their stakes in UWMC. McAdam LLC boosted its stake in UWM by 16.0% in the second quarter. McAdam LLC now owns 12,721 shares of the company’s stock worth $88,000 after purchasing an additional 1,758 shares in the last quarter. Bank of New York Mellon Corp raised its holdings in shares of UWM by 4.3% in the second quarter. Bank of New York Mellon Corp now owns 908,159 shares of the company’s stock valued at $6,294,000 after buying an additional 37,190 shares during the last quarter. International Assets Investment Management LLC acquired a new position in UWM during the 2nd quarter worth about $52,000. Rhumbline Advisers grew its holdings in UWM by 3.9% during the 2nd quarter. Rhumbline Advisers now owns 91,964 shares of the company’s stock worth $637,000 after acquiring an additional 3,426 shares during the last quarter. Finally, Quest Partners LLC acquired a new stake in UWM in the 2nd quarter valued at about $626,000. 53.59% of the stock is currently owned by institutional investors and hedge funds.

UWM Stock Performance

The stock’s 50 day simple moving average is $6.40 and its two-hundred day simple moving average is $7.51. The company has a market capitalization of $9.40 billion, a P/E ratio of -25.57 and a beta of 1.65. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.40 and a quick ratio of 1.40.

UWM Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, January 9th. Shareholders of record on Thursday, December 19th will be issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a yield of 6.80%. The ex-dividend date is Thursday, December 19th. UWM’s dividend payout ratio is -173.91%.

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.