Investors in cash trouble should check out UWM Holdings Corporation (UWMC)

UWM Holdings Corporation (NYSE: UWMC) stock fell -5.42% on Friday to $3.49 against a previous-day closing price of $3.69. With 1.21 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.37 million shares. During the session, the Mortgage Finance company that operates in wider Financial sector, reached to the highest price of $3.6900 whereas the lowest price it dropped to was $3.4600. The 52-week range on UWMC shows that it touched its highest point at $7.51 and its lowest point at $3.14 during that stretch. It currently has a 1-year price target of $3.70. With its current market cap of 5.78 billion, UWMC has annualized dividend of $0.40 while the current yield stands at 11.46%.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of UWMC was down-trending over the past week, with a drop of -8.88%, but this was down by -4.12% over a month. Three-month performance dropped to -4.12% while six-month performance fell -20.86%. The stock lost -49.42% in the past year, while it has lost -41.05% so far this year. A look at the trailing 12-month EPS for UWMC yields 0.58 with Next year EPS estimates of 0.28. For the next quarter, that number is -0.03. This implies an EPS growth rate of -98.00% for this year and -3.10% for next year.

Float and Shares Shorts:

At present, 1.66 billion UWMC shares are outstanding with a float of 85.89 million shares on hand for trading. On Jul 14, 2022, short shares totaled 19.57 million, which was 21.15% higher than short shares on Jun 14, 2022. In addition to Mr. Mathew R. Ishbia as the firm’s Chairman, Pres & CEO, Ms. Melinda Wilner serves as its Exec. VP, COO & Director.

Institutional Ownership:

Through their ownership of 45.59% of UWMC’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 4.52% of UWMC, in contrast to 21.31% held by mutual funds. Shares owned by individuals account for 13.72%. As the largest shareholder in UWMC with 8.00% of the stake, The Vanguard Group, Inc. holds 7,408,014 shares worth 7,408,014. A second-largest stockholder of UWMC, Diameter Capital Partners LP, holds 4,986,973 shares, controlling over 5.39% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in UWMC, holding 3,378,530 shares or 3.65% stake. With a 2.68% stake in UWMC, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,484,100 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.26% of UWMC stock, is the second-largest Mutual Fund holder. It holds 2,089,805 shares valued at 7.57 million. Vanguard Small Cap Value Index Fu holds 1.50% of the stake in UWMC, owning 1,386,367 shares worth 5.02 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for UWMC since 12 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 9 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With UWMC analysts setting a high price target of $5.00 and a low target of $3.00, the average target price over the next 12 months is $3.70. Based on these targets, UWMC could surge 43.27% to reach the target high and fall by -14.04% to reach the target low. Reaching the average price target will result in a growth of 6.02% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. UWMC will report FY 2022 earnings on 02/01/2023. Analysts have provided yearly estimates in a range of $0.53 being high and $0.26 being low. For UWMC, this leads to a yearly average estimate of $0.35. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. UWM Holdings Corporation surprised analysts by $0.05 when it reported $0.10 EPS against a consensus estimate of $0.05. The surprise factor in the prior quarter was $0.13. Based on analyst estimates, the high estimate for the next quarter is $0.07 and the low estimate is -$0.05. The average estimate for the next quarter is thus -$0.01.

Summary of Insider Activity:

Insiders traded UWMC stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 10 while that of sell transactions has risen to 5 over the past year. The total number of shares bought during that period was 348,843 while 21,442 shares were sold.

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