Renaissancere Holdings Ltd. Makes New $24.14 Billion Investment in Universal Insurance Holdings Inc $UVE

Key Points

• Renaissancere Holdings acquired 583,771 shares of Universal Insurance, reportedly valued at $24.14 billion, giving it approximately 2.1% of UVE and making the stock its fourth-largest portfolio holding. Institutional investors collectively own 66.61% of the company.
• Universal Insurance reported quarterly EPS of $1.84, exceeding the $1.57 analyst consensus, while revenue of $419.38 million fell short of the $614.62 million estimate. Analysts expect full-year EPS of $4.85.
• The company declared a quarterly dividend of $0.16, equivalent to $0.64 annually and a 1.5% yield. UVE shares opened at $42.52, while analysts maintain a consensus “Hold” rating with a $45 average price target.

Renaissancere Holdings Ltd. acquired a new stake in shares of Universal Insurance Holdings Inc (NYSE:UVE - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor acquired 583,771 shares of the insurance provider's stock, valued at approximately $24,144,769,000. Universal Insurance comprises 5.7% of Renaissancere Holdings Ltd.'s investment portfolio, making the stock its 4th largest holding. Renaissancere Holdings Ltd. owned approximately 2.10% of Universal Insurance at the end of the most recent quarter.

A number of other institutional investors have also recently made changes to their positions in UVE. Torren Management LLC acquired a new stake in shares of Universal Insurance during the fourth quarter worth $54,000. Tower Research Capital LLC TRC grew its holdings in shares of Universal Insurance by 390.0% during the second quarter. Tower Research Capital LLC TRC now owns 2,656 shares of the insurance provider's stock valued at $74,000 after buying an additional 2,114 shares during the last quarter. Parallel Advisors LLC increased its position in shares of Universal Insurance by 4,847.3% in the 1st quarter. Parallel Advisors LLC now owns 2,721 shares of the insurance provider's stock valued at $93,000 after acquiring an additional 2,666 shares during the period. IFP Advisors Inc increased its position in shares of Universal Insurance by 492.4% in the 4th quarter. IFP Advisors Inc now owns 2,796 shares of the insurance provider's stock valued at $95,000 after acquiring an additional 2,324 shares during the period. Finally, Archer Investment Corp purchased a new position in Universal Insurance in the 1st quarter worth $95,000. Institutional investors and hedge funds own 66.61% of the company's stock.

Universal Insurance Stock Performance

NYSE UVE opened at $42.52 on Tuesday. The firm has a market capitalization of $1.18 billion, a P/E ratio of 5.61 and a beta of 0.72. The stock has a 50-day simple moving average of $41.07 and a two-hundred day simple moving average of $37.19. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.57 and a current ratio of 0.57. Universal Insurance Holdings Inc has a fifty-two week low of $23.32 and a fifty-two week high of $45.15.

Universal Insurance (NYSE:UVE - Get Free Report) last issued its earnings results on Thursday, July 23rd. The insurance provider reported $1.84 EPS for the quarter, topping analysts' consensus estimates of $1.57 by $0.27. The firm had revenue of $419.38 million for the quarter, compared to the consensus estimate of $614.62 million. Universal Insurance had a return on equity of 37.67% and a net margin of 13.49%. On average, equities analysts forecast that Universal Insurance Holdings Inc will post 4.85 earnings per share for the current year.

Universal Insurance Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 31st were issued a $0.16 dividend. The ex-dividend date of this dividend was Friday, July 31st. This represents a $0.64 dividend on an annualized basis and a yield of 1.5%. Universal Insurance's payout ratio is presently 8.44%.

Insider Buying and Selling

In other Universal Insurance news, Chairman Sean P. Downes sold 20,000 shares of the company's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $44.27, for a total value of $885,400.00. Following the sale, the chairman owned 1,104,645 shares in the company, valued at approximately $48,902,634.15. This represents a 1.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 15.00% of the company's stock.

Wall Street Analysts Forecast Growth

UVE has been the subject of a number of research reports. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Universal Insurance in a report on Friday, July 17th. Wall Street Zen lowered shares of Universal Insurance from a "strong-buy" rating to a "buy" rating in a research report on Sunday, August 9th. Piper Sandler lifted their price objective on shares of Universal Insurance from $44.00 to $45.00 and gave the company a "neutral" rating in a research note on Monday, July 27th. Finally, Zacks Research downgraded shares of Universal Insurance from a "strong-buy" rating to a "hold" rating in a report on Tuesday, June 23rd. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $45.00.

About Universal Insurance

Universal Insurance Holdings, Inc NYSE: UVE is a property and casualty insurance holding company headquartered in Jacksonville, Florida. The company underwrites homeowners and other residential property insurance products to protect against natural catastrophes such as hurricanes, windstorms and fires. It distributes policies primarily through a network of independent agents and brokers, offering coverage for primary residences, secondary homes, condominiums, vacant dwellings and rental properties across its service territory.

In addition to personal lines, Universal provides commercial property and casualty insurance tailored to small businesses and institutional clients.

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