UWM Holdings Corporation (UWMC) Shares Decline Despite Market Challenges

The stock of UWM Holdings Corporation (NYSE: UWMC) has decreased by -5.62 when compared to last closing price of 7.29.Despite this, the company has seen a loss of -7.03% in its stock price over the last five trading days. seekingalpha.com reported 2024-10-01 that UWMC is outpacing the S&P 500 with a 22% return YTD in 2024, positioning its share price to move higher with the next rate cut cycle. UWM’s ability to excel in both purchase and refinance markets has fueled its growth, demonstrating resilience through the rate cycle and aligning itself for an oncoming refinancing & purchasing surge. While bullish on UWM’s long-term, housing market softening, recession indicators, and the company’s elevated payout ratio need improvement to ensure sustainable profitability for the company.

Is It Worth Investing in UWM Holdings Corporation (NYSE: UWMC) Right Now?

Moreover, the 36-month beta value for UWMC is 1.67. Analysts have varying opinions on the stock, with 0 analysts rating it as a “buy,” 2 as “overweight,” 7 as “hold,” and 3 as “sell.”

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The public float for UWMC is 50.81M and currently, short sellers hold a 29.13% of that float. On October 22, 2024, UWMC’s average trading volume was 2.28M shares.

UWMC’s Market Performance

UWMC’s stock has seen a -7.03% decrease for the week, with a -18.29% drop in the past month and a -11.91% fall in the past quarter. The volatility ratio for the week is 3.04%, and the volatility levels for the past 30 days are at 3.01% for UWM Holdings Corporation. The simple moving average for the past 20 days is -11.01% for UWMC’s stock, with a -6.78% simple moving average for the past 200 days.

Analysts’ Opinion of UWMC

Many brokerage firms have already submitted their reports for UWMC stocks, with Barclays repeating the rating for UWMC by listing it as a “Equal Weight.” The predicted price for UWMC in the upcoming period, according to Barclays is $8 based on the research report published on October 08, 2024 of the current year 2024.

Keefe Bruyette, on the other hand, stated in their research note that they expect to see UWMC reach a price target of $6. The rating they have provided for UWMC stocks is “Mkt Perform” according to the report published on April 09th, 2024.

UWMC Trading at -19.14% from the 50-Day Moving Average

After a stumble in the market that brought UWMC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -29.36% of loss for the given period.

Volatility was left at 3.01%, however, over the last 30 days, the volatility rate increased by 3.04%, as shares sank -20.28% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -18.19% lower at present.

During the last 5 trading sessions, UWMC fell by -7.03%, which changed the moving average for the period of 200-days by +4.88% in comparison to the 20-day moving average, which settled at $7.73. In addition, UWM Holdings Corporation saw -3.78% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at UWMC starting from Mat Ishbia, who sale 1,200,000 shares at the price of $8.45 back on Sep 16 ’24. After this action, Mat Ishbia now owns 0 shares of UWM Holdings Corporation, valued at $10,140,000 using the latest closing price.

Mat Ishbia, the President and CEO of UWM Holdings Corporation, sale 10,842,012 shares at $8.45 during a trade that took place back on Sep 13 ’24, which means that Mat Ishbia is holding 0 shares at $91,615,001 based on the most recent closing price.

Stock Fundamentals for UWMC

Current profitability levels for the company are sitting at:

  • 0.49 for the present operating margin
  • 0.96 for the gross margin

The net margin for UWM Holdings Corporation stands at 0.13. The total capital return value is set at 0.22. Equity return is now at value 2.49, with 0.02 for asset returns.

Based on UWM Holdings Corporation (UWMC), the company’s capital structure generated 0.99 points at debt to capital in total, while cash flow to debt ratio is standing at -0.36. The debt to equity ratio resting at 86.27. The interest coverage ratio of the stock is 2.88.

Currently, EBITDA for the company is 1.14 billion with net debt to EBITDA at 8.06. When we switch over and look at the enterprise to sales, we see a ratio of 9.02. The receivables turnover for the company is 2.81for trailing twelve months and the total asset turnover is 0.17.

Conclusion

To wrap up, the performance of UWM Holdings Corporation (UWMC) has been bad in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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