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

Key Points

• Universal Insurance shares reached a new 52-week high of $48.42, trading near $47.71 and above both their 50-day ($44.00) and 200-day ($40.81) moving averages.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and a $45.00 price target; however, the target is below the stock’s current level, and ratings range from Strong Buy to Hold.
• The insurer exceeded quarterly earnings expectations, reporting $1.84 per share versus a $1.57 consensus estimate, while institutional investors own 66.61% of the stock. Chairman Sean Downes sold 20,000 shares in September.

Universal Insurance Holdings Inc (NYSE:UVE - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday. The stock traded as high as $48.42 and last traded at $47.7130, with a volume of 178,709 shares traded. The stock had previously closed at $46.92.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Weiss Ratings raised Universal Insurance from a "buy (a-)" rating to a "buy (a+)" rating in a report on Thursday, October 8th. Wall Street Zen upgraded Universal Insurance from a "buy" rating to a "strong-buy" rating in a report on Saturday, October 3rd. Piper Sandler lifted their price target on 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 cut shares of Universal Insurance from a "strong-buy" rating to a "hold" rating in a report on Tuesday, June 23rd. One research analyst has rated the stock with a Strong Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $45.00.

Universal Insurance Stock Performance

The company has a market cap of $1.33 billion, a P/E ratio of 6.29 and a beta of 0.69. The stock has a 50 day moving average price of $44.00 and a two-hundred day moving average price of $40.81. The company has a quick ratio of 0.57, a current 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 data on Thursday, July 23rd. The insurance provider reported $1.84 earnings per share for the quarter, topping the consensus estimate of $1.57 by $0.27. The business 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, research analysts predict that Universal Insurance Holdings Inc will post 6.13 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Chairman Sean Downes sold 20,000 shares of the business's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $43.98, for a total transaction of $879,600.00. Following the completion of the transaction, the chairman owned 1,084,645 shares of the company's stock, valued at approximately $47,702,687.10. The trade was a 1.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 15.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of UVE. Nisa Investment Advisors LLC lifted its stake in Universal Insurance by 36.5% during the 3rd quarter. Nisa Investment Advisors LLC now owns 6,412 shares of the insurance provider's stock valued at $270,000 after acquiring an additional 1,716 shares in the last quarter. USA Financial Formulas purchased a new position in shares of Universal Insurance in the 3rd quarter worth approximately $44,000. IFP Advisors Inc grew its holdings in shares of Universal Insurance by 29.9% in the second quarter. IFP Advisors Inc now owns 5,618 shares of the insurance provider's stock valued at $232,000 after acquiring an additional 1,292 shares in the last quarter. Squarepoint Ops LLC purchased a new position in shares of Universal Insurance in the 2nd quarter worth about $1,381,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Universal Insurance in the 2nd quarter worth about $718,000. 66.61% of the stock is currently owned by institutional investors and hedge funds.

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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