UWM Holdings Corporation

UWM Holdings Corporation (NYSE: UWMC) is a residential mortgage loan originator, seller, and servicer. UWMC generates revenue from three sources: loan production, loan servicing, and interest income.

Key Highlights

• The company reported a 41.65% decline in total revenues to USD 484.65 million in Q2FY21 (ended June 30, 2021) compared to USD 830.65 million in Q2FY20.
• Net income for the quarter was USD 138.71 million vs. USD 539.49 million reported in Q2FY20.
• Due to high operational expenditures such as salaries, commissions, benefits, and marketing, travel, and entertainment, UWMC's operating margin fell to 61.4% in Q2FY21, compared to 78.9% in Q1FY21.
• Post Q2FY21 end, it repurchased an additional 1.5 million common shares for a total consideration of USD 11.5 million under its share repurchase plan.
• 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 6.25 to USD 14.38.
• UWMC stock price has declined 27.21% and 31.89% in the past nine and twelve months, respectively.

Technical Price Chart (as of September 02, 2021). Analysis by Kalkine

Conclusion: Considering the volatility in the interest rates, macroeconomic conditions, pressure on profit margins, uncertain outlook, and technical indicators, we recommend an "Avoid" rating on the stock at the closing price of USD 7.41, up 0.14% as of September 02, 2021.

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

Sesen Bio, Inc.

Sesen Bio, Inc. (NASDAQ: SESN) is a late-stage clinical company engaged in developing next-gen antibody-drug conjugate therapies for cancer treatment using its Targeted Protein Therapeutics platform.

Key Highlights

• SESN has yet to commercialize any therapeutic candidate and reported USD 2.23 million under license and related income in Q2FY21 (ended June 30, 2021).
• It exited the quarter with a cash balance of USD 151.04 million and no outstanding debt.
• On August 13, 2021, the US Food and Drug Administration (FDA) determined that the Biologics License Application (BLA) for Vicineum in its current form is ineligible for approval and made recommendations relating to a recent pre-approval inspection and product quality.
• At present, SESN has against it a class-action lawsuit claiming that it neglected to disclose to investors that the Vicineum clinical trial had over 2,000 protocol breaches and submitted corrupted data under the BLA.
• Stock is currently trading far below its crucial short-term as well as long-term 50-day and 200-day SMA support levels.
• Stock is leaning towards the lower-band of the 52-week range of USD 0.70 to USD 6.04.
• SESN's stock price fell 73.18% and 71.08% in the past one and three months, respectively.

Technical Price Chart (as of September 02, 2021). Analysis by Kalkine

Conclusion: Considering the absence of revenues, uncertain outlook, recent lawsuit, and technical indicators, we recommend an "Avoid" rating on the stock at the closing price of USD 1.07, up 8.40% as of September 02, 2021.

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