UWM Holdings Corporation

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

Key Highlights:

• Total revenues decreased by 62.36% to USD 690.31 million in Q3FY21 (ended September 30, 2021), compared to USD 1.83 billion in Q3FY20.
• UWMC's net income fell to USD 329.86 million in Q3FY21, compared to 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 3.93 to USD 12.45.
• UWMC stock price has declined 38.26% and 40.79% in the past three and six months, respectively.

Conclusion: Considering the macroeconomic conditions, FED focus on rate hikes, improved margins, and other technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 4.34, up 0.70% as of February 25, 2022, at 3:14 PM ET.

2-Year Technical Price Chart (as of February 25, 2022, at 3:14 PM ET). Source: REFINITIV, Analysis by Kalkine Group

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

Romeo Power, Inc.

Romeo Power, Inc. (NYSE: RMO) is a maker of lithium-ion battery modules and packs for commercial electric vehicles. It promotes large-scale sustainable mobility by offering a comprehensive selection of long-lasting batteries and energy-dense battery modules and packages.

Key Highlights:

• Due to the high cost of revenue and excessive operational expenses, the company's net losses increased significantly to USD 17.95 million in Q3FY21 (ended September 30, 2021) compared to USD 8.92 million in Q3FY20.
• In the third quarter of 2021, the company recorded a significant increase in topline, with total revenue rising to USD 5.76 million from USD 0.68 million in the same period of the previous financial year.
• As of September 30, 2021, the company's cash and cash equivalents were USD 53.28 million, down from USD 292.44 as of December 31, 2020.
• Because the company is still in its early stages, it requires cash to cover operating expenses. It may need to raise additional funds to continue operating and generating revenue. As a result, investor sentiment is negatively affected.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, indicating a bearish trend.

Conclusion:

Considering the substantial jump in the topline, continuous losses, weak cash position, and bearish technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 1.82, down 5.96% as of February 25, 2022, 3:20 PM ET.

3-Year Technical Price Chart (as of February 25, 2022, at 3:20 PM ET). Source: REFINITIV, Analysis by Kalkine Group

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