UWM Holdings Corporation

UWM Holdings Corporation (NYSE: UWMC) is a lender that originates, sells, and services residential mortgage loans. Loan creation, loan servicing, and interest income are the three sources of revenue for UWMC.

Key Highlights:

• The company reported a 62.36% decline in total revenues to USD 690.31 million in Q3FY21 (ended September 30, 2021) compared to USD 1.83 billion in Q3FY20.
• UWMC reported a decline in net income to USD 329.86 million in Q3FY21 vs. USD 1.45 billion in Q3FY20.
• The company's operating margins improved to 69.0% in Q3FY21 vs. 61.4% in Q2FY21.
• Its ROE has also improved sequentially from 7.4% in Q2FY21 to 21.0% in Q3FY21.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, indicating a bearish trend.
• Stock is leaning towards the lower band of the 52-week range of USD 5.41 to USD 13.10.
• UWMC stock price has declined 19.32% and 25.81% in the past three and six months, respectively.

Technical Price Chart (as of January 14, 2022). Analysis by Kalkine

Conclusion: Considering the macroeconomic conditions, FED focus on rate hikes, improved margins, ROE, and technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 5.72, down 3.54% as of January 14, 2022.

*The reference data in this report has been partly sourced from REFINITIV.

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