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

UWM Holdings Co. (NYSE:UWMC) was the target of some unusual options trading on Thursday. Investors acquired 5,442 call options on the stock. This is an increase of approximately 79% compared to the average daily volume of 3,039 call options.

UWM Stock Down 2.8 %

Shares of UWM stock traded down $0.26 during trading on Thursday, hitting $9.03. 694,923 shares of the stock traded hands, compared to its average volume of 1,626,463. The stock has a market cap of $863.07 million, a P/E ratio of 310.00 and a beta of 1.63. The company has a debt-to-equity ratio of 0.90, a quick ratio of 1.58 and a current ratio of 1.58. UWM has a twelve month low of $4.49 and a twelve month high of $9.35. The company has a fifty day moving average price of $7.63 and a two-hundred day moving average price of $7.10.

UWM (NYSE:UWMC) last announced its quarterly earnings results on Tuesday, August 6th. The company reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.06 by ($0.02). The firm had revenue of $507.09 million during the quarter, compared to analyst estimates of $540.31 million. During the same period last year, the company posted $0.11 EPS. Equities research analysts predict that UWM will post 0.28 EPS for the current fiscal year.

UWM Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 10th. Investors of record on Thursday, September 19th will be issued a $0.10 dividend. The ex-dividend date of this dividend is Thursday, September 19th. This represents a $0.40 annualized dividend and a yield of 4.43%. UWM’s dividend payout ratio (DPR) is currently 1,333.33%.

Institutional Investors Weigh In On UWM

Several institutional investors and hedge funds have recently added to or reduced their stakes in UWMC. SG Americas Securities LLC bought a new position in UWM in the 4th quarter worth approximately $129,000. International Assets Investment Management LLC increased its position in UWM by 691.5% in the 4th quarter. International Assets Investment Management LLC now owns 53,625 shares of the company’s stock worth $383,000 after buying an additional 46,850 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank increased its position in UWM by 32.7% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 18,158 shares of the company’s stock worth $130,000 after buying an additional 4,479 shares during the period. Harvest Fund Management Co. Ltd increased its position in UWM by 2,083.5% in the 4th quarter. Harvest Fund Management Co. Ltd now owns 19,870 shares of the company’s stock worth $142,000 after buying an additional 18,960 shares during the period. Finally, Victory Capital Management Inc. increased its position in UWM by 4.0% in the 4th quarter. Victory Capital Management Inc. now owns 2,126,166 shares of the company’s stock worth $15,202,000 after buying an additional 81,799 shares during the period. 53.59% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several brokerages have commented on UWMC. Keefe, Bruyette & Woods boosted their price target on shares of UWM from $7.00 to $8.00 and gave the stock a “market perform” rating in a research report on Wednesday, August 7th. The Goldman Sachs Group raised their target price on shares of UWM from $7.50 to $8.50 and gave the stock a “neutral” rating in a report on Thursday, August 8th. Wedbush increased their price objective on UWM from $7.00 to $8.50 and gave the company a “neutral” rating in a research report on Wednesday, August 7th. BTIG Research increased their price target on UWM from $8.00 to $10.00 and gave the company a “buy” rating in a research report on Tuesday, August 6th. Finally, Barclays boosted their price target on shares of UWM from $5.00 to $6.00 and gave the company an “underweight” rating in a report on Tuesday, July 9th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company. Based on data from MarketBeat, UWM presently has an average rating of “Hold” and a consensus target price of $7.29.

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.