Is UWM Holdings Corporation (UWMC) A Good Investment?

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UWM Holdings Corporation (NYSE:UWMC) finished Wednesday with a subtraction of -$0.08 to close at $3.33, a downside of -2.35 percent. An average of 1,443,540 shares of common stock have been traded in the last five days. There was a fall of -$0.45 in the past week, and it reached a new high 4 times over the past 12 months. The last 20 days have seen an average of 1,411,515 shares traded, while the 50-day average volume stands at 1,285,798.

UWMC stock has decreased by -19.17% in the last month. The company shares reached their 1-month lowest point of $3.30 on 12/28/22. With the stock rallying to its 52-week high on 01/04/22, shares of the company touched a low of $2.84 and a high of $6.26 in 52 weeks. It has reached a new high 2 times so far this year and lost -43.75% or -$2.59 in price. In spite of this, the price is down -46.81% from the 52-week high.


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Insider Transactions

UWMC stock investors should be aware that UWM Holdings Corporation (UWMC) stock had its last reported insider trading activity 330 days ago on Nov 21. In this transaction, the insider spent $1,708. EVP, Chief Strategy Officer, Elezaj Alex, disposed of 1,575 shares at a price of $4.80 on Feb 02. The insider now owns more than $7,557 worth of shares. Prior to that, EVP, CFO Forrester Tim went on to Sale 6,342 shares at $4.77 each on Feb 02. An amount of $30,226 was transacted.

Valuation Metrics

UWM Holdings Corporation (UWMC) has a trailing price-to-earnings (P/E) ratio of 6.09. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.36, the price-to-book (PB) ratio at 2.16, and the price-to-cash flow ratio at 1.24.

Financial Health

Further, the company has a long term debt to equity ratio of 47.45 and a total debt to equity ratio of 48.26 for the quarter ending June 29. Its gross profit as reported stood at $2.79 billion compared to revenue of $2.97 billion.

Earnings Surprise

For the three-month period that ended June 29, UWM Holdings Corporation had $114.88 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $11.7 million in the quarter, while revenues of $8.37 million were shrunk -115.81%. The analyst consensus anticipated UWM Holdings Corporation’s latest quarter earnings to come in at $0.06 per share, but it turned out to be $0.1, a 66.70% surprise. For the quarter, EBITDA amounted to $422.67 million. Shareholders own equity worth $1.59 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at UWM Holdings Corporation (UWMC) price momentum. RSI 9-day as of the close on 28 December was 18.00%, suggesting the stock is oversold, with historical volatility in this time frame at 33.29%.

As of today, UWMC’s price is $3.55 -11.90% or -$0.45 from its 5-day moving average. UWMC is currently trading -22.38% lower than its 20-day SMA and -17.98% lower than its 100-day SMA. However, the stock’s current price level is +6.05% above the SMA50 and -19.57% below the SMA200.

The stochastic %K and %D were 3.27% and 5.06%, respectively, and the average true range (ATR) was 0.24. With the 14-day stochastic at 1.97% and the average true range at 0.23, the RSI (14) stands at 27.93%. The stock has reached -0.36 on the 9-day MACD Oscillator while the 14-day reading was at -0.66.

Analyst Ratings

Keefe Bruyette downgraded UWM Holdings Corporation (NYSE: UWMC) to a an Underperform rating in its most recent analyst report. Previously, the stock was rated as a Mkt perform.

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