UWMC - UWM Holdings stock drops after Credit Suisse downgrades to Neutral

UWM Holdings (UWMC) stock falls 2.9% in premarket trading after Credit Suisse analyst Douglas Harter downgrades the stock to Neutral from Outperform as its positives are already priced in.Positives include: attractive capital return (4.5% dividend and share repurchases), signs of stabilization in wholesale GOS (gain on sale) margins, an attractive relative cost to originate, which should help in the current environment, Harter writes.Increases price target to $8.50 from $8 due to increased confidence on the stabilization of wholesale GOS margins and capital return.Sees better risk-adjusted return potential in Home Point Capital (HMPT) when wholesale GOS margins improve.In the past year, HMPT's total return lags more than UWMC and RKT against the S&P 500 as seen in chart below.See why SA contributor likes UWMC better than competitor Rocket Mortgage.

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UWM Holdings stock drops after Credit Suisse downgrades to Neutral