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

UWM Holdings Co. (NYSE:UWMC) saw some unusual options trading activity on Monday. Stock traders acquired 5,337 call options on the company. This is an increase of 114% compared to the typical daily volume of 2,493 call options.

Institutional Trading of UWM

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Wealth Enhancement Advisory Services LLC grew its position in shares of UWM by 14.3% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 55,858 shares of the company’s stock valued at $328,000 after purchasing an additional 6,976 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in UWM by 16.2% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 197,047 shares of the company’s stock valued at $1,157,000 after buying an additional 27,531 shares during the period. Voloridge Investment Management LLC grew its position in UWM by 9.9% during the fourth quarter. Voloridge Investment Management LLC now owns 699,778 shares of the company’s stock worth $4,108,000 after buying an additional 62,978 shares in the last quarter. Trace Wealth Advisors LLC bought a new position in UWM in the 4th quarter worth about $132,000. Finally, Sherbrooke Park Advisers LLC raised its holdings in shares of UWM by 17.4% in the 4th quarter. Sherbrooke Park Advisers LLC now owns 20,038 shares of the company’s stock valued at $118,000 after acquiring an additional 2,975 shares in the last quarter. Institutional investors own 53.59% of the company’s stock.

UWM Stock Performance

Shares of NYSE UWMC traded down $0.07 during midday trading on Monday, hitting $5.46. The company’s stock had a trading volume of 2,178,616 shares, compared to its average volume of 2,721,638. The firm has a market capitalization of $8.73 billion, a price-to-earnings ratio of -23.72 and a beta of 1.64. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 1.06. The stock has a fifty day moving average price of $6.10 and a 200 day moving average price of $6.39. UWM has a one year low of $5.27 and a one year high of $9.74.

UWM (NYSE:UWMC) last released its quarterly earnings data on Wednesday, February 26th. The company reported $0.01 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.06). The company had revenue of $560.21 million during the quarter, compared to the consensus estimate of $645.75 million. On average, research analysts forecast that UWM will post 0.2 EPS for the current fiscal year.

UWM Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 10th. Stockholders of record on Thursday, March 20th will be given a $0.10 dividend. The ex-dividend date of this dividend is Thursday, March 20th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 7.33%. UWM’s dividend payout ratio (DPR) is currently 500.00%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on UWMC shares. Morgan Stanley reduced their price objective on shares of UWM from $7.50 to $6.50 and set an “equal weight” rating for the company in a research report on Thursday, December 19th. Wedbush reaffirmed a “neutral” rating and set a $6.50 target price on shares of UWM in a research report on Monday, March 3rd. Finally, Keefe, Bruyette & Woods raised shares of UWM from a “market perform” rating to an “outperform” rating and lifted their price objective for the stock from $6.50 to $7.50 in a research report on Monday, March 3rd. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and two have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $7.25.

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.