UWM (NYSE:UWMC) Rating Lowered to “Strong Sell” at Zacks Research

by · The Markets Daily

UWM (NYSE:UWMC – Get Free Report) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Wednesday,Zacks.com reports.

A number of other research firms have also commented on UWMC. BTIG Research set a $2.00 price target on UWM in a research report on Friday. Weiss Ratings cut shares of UWM from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, June 15th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $5.50 price objective on shares of UWM in a report on Thursday, May 7th. Morgan Stanley lowered their target price on UWM from $5.00 to $3.00 and set an “equal weight” rating for the company in a report on Monday, July 20th. Finally, Keefe, Bruyette & Woods raised UWM from a “market perform” rating to an “outperform” rating and dropped their price target for the company from $4.50 to $3.75 in a research note on Thursday, June 25th. Six investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, UWM currently has an average rating of “Hold” and an average price target of $4.47.

View Our Latest Stock Analysis on UWM

UWM Stock Performance

Shares of NYSE:UWMC opened at $1.20 on Wednesday. UWM has a 1-year low of $0.93 and a 1-year high of $7.14. The business has a 50-day moving average price of $2.16 and a two-hundred day moving average price of $3.40. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 3.13. The stock has a market capitalization of $1.91 billion, a P/E ratio of -14.94 and a beta of 1.78.

UWM (NYSE:UWMC – Get Free Report) last posted its quarterly earnings results 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). UWM had a negative return on equity of 5.61% and a negative net margin of 1.04%.The company had revenue of $888.00 million during the quarter, compared to the consensus estimate of $727.46 million. Equities analysts predict that UWM will post 0.3 earnings per share for the current year.

Institutional Trading of UWM

Hedge funds have recently modified their holdings of the stock. Bank of New York Mellon Corp bought a new stake in UWM in the 2nd quarter valued at $4,593,000. FNY Investment Advisers LLC increased its position in UWM by 5.5% during the 2nd quarter. FNY Investment Advisers LLC now owns 302,000 shares of the company’s stock worth $691,000 after buying an additional 15,700 shares during the period. 180 Wealth Advisors LLC lifted its holdings in shares of UWM by 62.0% during the second quarter. 180 Wealth Advisors LLC now owns 482,521 shares of the company’s stock worth $1,105,000 after buying an additional 184,694 shares in the last quarter. CoreCap Advisors LLC boosted its position in shares of UWM by 2,453.8% in the second quarter. CoreCap Advisors LLC now owns 51,332 shares of the company’s stock valued at $118,000 after acquiring an additional 49,322 shares during the period. Finally, Integrated Investment Consultants LLC boosted its position in shares of UWM by 0.5% in the first quarter. Integrated Investment Consultants LLC now owns 5,371,664 shares of the company’s stock valued at $19,445,000 after acquiring an additional 26,679 shares during the period. Institutional investors and hedge funds own 53.59% of the company’s stock.

Trending Headlines about UWM

Here are the key news stories impacting UWM this week:

  • Positive Sentiment: UWM announced a $2.05 billion strategic equity investment from the Ishbia family and Oaktree. Management said the funding should improve liquidity, support growth and help reduce its nonfunding debt-to-equity target to approximately 1.2x. UWM Announces Strategic Capital Partnership
  • Positive Sentiment: Second-quarter revenue of $888.0 million exceeded the roughly $727.5 million analyst consensus, while loan origination volume reached $39.7 billion and adjusted EBITDA totaled $185.9 million. UWM Second-Quarter Results
  • Neutral Sentiment: Unusually heavy options activity accompanied the selloff, with traders purchasing 26,964 call options—about 317% above average daily call volume. This may reflect speculative bullish positioning but does not change the company’s fundamentals.
  • Negative Sentiment: UWM reported a $451.9 million net loss, or $0.23 per share, compared with expectations for $0.07 of earnings and $0.16 of EPS a year earlier. The sizable earnings miss overshadowed the revenue beat. UWM Q2 Loss and Revenue Results
  • Negative Sentiment: The company suspended its dividend and is pursuing roughly $3 billion of total equity. Investors are concerned about the cost of the preferred-equity and warrant financing, as well as potential dilution to existing shareholders. UWM Preferreds, Warrants and Dilution
  • Negative Sentiment: The capital actions signal that management is prioritizing liquidity and deleveraging over near-term shareholder returns. The combination of a dividend suspension, significant dilution risk and the quarterly loss brought the stock closer to its 52-week low. United Wholesale Mortgage Capital Raise

UWM Company Profile

(Get Free Report)

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.

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