Universal Insurance (NYSE:UVE) Reaches New 1-Year High - Time to Buy?

Key Points

• Universal Insurance shares reached a new 52-week high of $47.68, above the previous close of $46.70. The stock has a market capitalization of approximately $1.31 billion and trades at a P/E ratio of 6.20.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and an average price target of $45.00. However, ratings range from “Strong Buy” to “Hold,” indicating some disagreement about further upside.
• The company beat quarterly earnings expectations, reporting adjusted EPS of $1.84 versus the $1.57 consensus estimate, while revenue of $419.38 million fell short of estimates. Institutional investors own 66.61% of shares, and the chairman recently sold 20,000 shares.

Universal Insurance Holdings Inc (NYSE:UVE - Get Free Report) shares reached a new 52-week high on Thursday. The company traded as high as $47.68 and last traded at $47.4710, with a volume of 11,486 shares traded. The stock had previously closed at $46.70.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Wall Street Zen upgraded shares of Universal Insurance from a "buy" rating to a "strong-buy" rating in a research note on Saturday, October 3rd. Piper Sandler increased their price target on Universal Insurance from $44.00 to $45.00 and gave the stock a "neutral" rating in a research note on Monday, July 27th. Weiss Ratings raised Universal Insurance from a "buy (a-)" rating to a "buy (a+)" rating in a report on Thursday, October 8th. Finally, Zacks Research downgraded Universal Insurance from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 23rd. One analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $45.00.

Universal Insurance Stock Performance

The company has a market capitalization of $1.31 billion, a P/E ratio of 6.20 and a beta of 0.69. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.57 and a current ratio of 0.57. The business's fifty day simple moving average is $43.73 and its 200-day simple moving average is $40.43.

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, beating analysts' consensus estimates of $1.57 by $0.27. Universal Insurance had a return on equity of 37.67% and a net margin of 13.49%. The firm had revenue of $419.38 million during the quarter, compared to analyst estimates of $614.62 million. As a group, equities analysts anticipate that Universal Insurance Holdings Inc will post 5.47 earnings per share for the current fiscal year.

Insiders Place Their Bets

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

Institutional Trading of Universal Insurance

Several hedge funds have recently made changes to their positions in UVE. Sierra Summit Advisors LLC increased its position in shares of Universal Insurance by 0.9% during the 1st quarter. Sierra Summit Advisors LLC now owns 30,056 shares of the insurance provider's stock valued at $1,027,000 after purchasing an additional 282 shares during the last quarter. Public Employees Retirement System of Ohio lifted its position in Universal Insurance by 1.5% in the first quarter. Public Employees Retirement System of Ohio now owns 23,509 shares of the insurance provider's stock worth $803,000 after buying an additional 348 shares during the last quarter. IFP Advisors Inc boosted its stake in Universal Insurance by 29.9% during the second quarter. IFP Advisors Inc now owns 5,618 shares of the insurance provider's stock worth $232,000 after buying an additional 1,292 shares during the period. Janney Montgomery Scott LLC boosted its stake in Universal Insurance by 7.0% during the first quarter. Janney Montgomery Scott LLC now owns 33,620 shares of the insurance provider's stock worth $1,148,000 after buying an additional 2,189 shares during the period. Finally, Parallel Advisors LLC boosted its stake in Universal Insurance by 4,847.3% during the first quarter. Parallel Advisors LLC now owns 2,721 shares of the insurance provider's stock worth $93,000 after buying an additional 2,666 shares during the period. 66.61% of the stock is currently owned by hedge funds and other institutional investors.

Universal Insurance Company Profile

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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