Universal Insurance (NYSE:UVE) Hits New 1-Year High - Still a Buy?

Key Points

• Universal Insurance shares reached a new 52-week high of $45.34 and were recently trading near $45.17, up 3.8%. The company has a $1.26 billion market capitalization and a low price-to-earnings ratio of 5.96.
• Analyst sentiment is broadly positive, with a MarketBeat consensus rating of “Moderate Buy” and an average price target of $45.00. Ratings range from Strong Buy to Hold, while Piper Sandler recently raised its target to $45.
• The insurer exceeded quarterly earnings expectations, reporting $1.84 in earnings per share versus the $1.57 consensus estimate, though revenue of $419.38 million fell short of expectations. Institutional investors own 66.61% of the stock, while company insiders own 15%.

Universal Insurance Holdings Inc (NYSE:UVE - Get Free Report)'s share price reached a new 52-week high on Wednesday. The company traded as high as $45.34 and last traded at $45.1740, with a volume of 122897 shares trading hands. The stock had previously closed at $43.51.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Wall Street Zen upgraded Universal Insurance from a "buy" rating to a "strong-buy" rating in a research note on Saturday. Zacks Research cut shares of Universal Insurance from a "strong-buy" rating to a "hold" rating in a report on Tuesday, June 23rd. Weiss Ratings upgraded shares of Universal Insurance from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Friday, September 18th. Finally, Piper Sandler upped their target price on shares of Universal Insurance from $44.00 to $45.00 and gave the company a "neutral" rating in a report on Monday, July 27th. One research analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $45.00.

Universal Insurance Stock Up 3.8%

The business's fifty day moving average price is $43.48 and its 200 day moving average price is $39.90. The firm has a market capitalization of $1.26 billion, a price-to-earnings ratio of 5.96 and a beta of 0.69. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 0.15.

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

Insider Transactions at Universal Insurance

In related news, Chairman Sean Downes sold 20,000 shares of the business's stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $43.98, for a total value of $879,600.00. Following the transaction, the chairman owned 1,084,645 shares in the company, valued at $47,702,687.10. The trade was a 1.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. 15.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Squarepoint Ops LLC acquired a new position in Universal Insurance in the 2nd quarter valued at $1,381,000. Public Employees Retirement System of Ohio acquired a new position in shares of Universal Insurance during the second quarter worth about $953,000. NFJ Investment Group LLC purchased a new position in Universal Insurance during the second quarter worth about $3,270,000. Renaissancere Holdings Ltd. acquired a new stake in Universal Insurance in the second quarter valued at about $24,144,769. Finally, Bank of America Corp DE purchased a new stake in Universal Insurance in the 2nd quarter valued at approximately $7,537,000. 66.61% of the stock is currently owned by hedge funds and other institutional investors.

About Universal Insurance

Universal Insurance Holdings, Inc NYSE: UVE is an insurance holding company focused primarily on personal residential property and casualty insurance. Through its operating subsidiaries, the company provides coverage designed to protect homeowners and other residential property owners against risks such as wind, fire, theft and other covered losses.

Universal's products have historically included homeowners, condominium, renters and dwelling-fire insurance, along with related personal lines offerings.

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