Universal Insurance (NYSE:UVE) Cut to Buy at Wall Street Zen

Key Points

• Universal Insurance (NYSE: UVE) has been downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen.
• The company's stock recently opened at $23.04, with a market cap of $652.44 million, and it has reported earnings per share of $1.23 for the last quarter.
• Insider sales have occurred, with Director Jon Springer selling 30,000 shares valued at approximately $811,800, representing a 9.04% decrease in ownership.

Universal Insurance (NYSE:UVE - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Saturday.

Universal Insurance Stock Down 2.5%

NYSE UVE opened at $23.04 on Friday. The business has a fifty day moving average price of $25.88 and a 200 day moving average price of $23.49. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.50 and a current ratio of 0.58. The company has a market cap of $652.44 million, a P/E ratio of 10.06 and a beta of 0.87. Universal Insurance has a one year low of $16.50 and a one year high of $28.49.

Universal Insurance (NYSE:UVE - Get Free Report) last issued its earnings results on Thursday, July 24th. The insurance provider reported $1.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.09 by $0.14. Universal Insurance had a return on equity of 15.37% and a net margin of 4.24%. The business had revenue of $596.72 million during the quarter, compared to the consensus estimate of $359.98 million. Research analysts anticipate that Universal Insurance will post 1.66 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Jon Springer sold 30,000 shares of the business's stock in a transaction on Friday, May 30th. The shares were sold at an average price of $27.06, for a total value of $811,800.00. Following the completion of the sale, the director directly owned 301,835 shares of the company's stock, valued at $8,167,655.10. The trade was a 9.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman Sean P. Downes sold 25,000 shares of the business's stock in a transaction that occurred on Thursday, June 12th. The shares were sold at an average price of $26.91, for a total value of $672,750.00. Following the completion of the sale, the chairman owned 926,667 shares of the company's stock, valued at approximately $24,936,608.97. This represents a 2.63% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 101,393 shares of company stock worth $2,687,275 in the last ninety days. Corporate insiders own 16.60% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in UVE. Millennium Management LLC grew its position in Universal Insurance by 171.5% during the first quarter. Millennium Management LLC now owns 343,786 shares of the insurance provider's stock worth $8,148,000 after buying an additional 217,184 shares during the period. Donald Smith & CO. Inc. grew its holdings in shares of Universal Insurance by 6.8% in the 1st quarter. Donald Smith & CO. Inc. now owns 1,836,718 shares of the insurance provider's stock worth $43,530,000 after acquiring an additional 116,199 shares during the period. Nuveen LLC acquired a new stake in shares of Universal Insurance in the 1st quarter worth approximately $2,197,000. Goldman Sachs Group Inc. increased its stake in Universal Insurance by 9.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 805,199 shares of the insurance provider's stock valued at $19,083,000 after purchasing an additional 69,289 shares in the last quarter. Finally, American Century Companies Inc. raised its holdings in Universal Insurance by 9.8% during the first quarter. American Century Companies Inc. now owns 668,641 shares of the insurance provider's stock worth $15,847,000 after purchasing an additional 59,752 shares during the last quarter. 66.61% of the stock is owned by hedge funds and other institutional investors.

About Universal Insurance

Universal Insurance Holdings, Inc, together with its subsidiaries, operates as an integrated insurance holding company in the United States. It develops, markets, and underwrites insurance products for personal residential insurance, such as homeowners, renters/tenants, condo unit owners, and dwelling/fire; and offers allied lines, coverage for other structures, and personal property, liability, and personal articles coverages.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.