HMPT - UWM Holdings cut to Hold at UBS as rapid rate change seen pressuring margins

UWM Holdings (NYSE:UWMC) stock is slipping 1.6% in premarket trading after UBS analyst Brock Vandervliet downgrades the mortgage wholesaler's stock to Neutral from Buy, noting that that financial companies often underperform during times of rapid interest rate change. "Additionally, inflation has surged to levels last seen in the 1970s and has yet to peak, fueling continued speculation about steps the Fed may take to contain it," he said. That creates a more difficult environment that's set to apply more pressure to both mortgage volume and gain on sale than he expected. Vandervliet cuts EPS estimates for UWM Holdings (UWMC), as well as Home Point Capital (NASDAQ:HMPT) and Rocket Companies (NYSE:RKT). For 2022, the analyst now estimates UWMC's EPS to be $0.48, down from his previous estimate of $0.79 and 2023 EPS of $0.66 vs. $1.09 previously. "We see no obvious ports in this storm or an origination business model that stands

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UWM Holdings cut to Hold at UBS as rapid rate change seen pressuring margins