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

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 research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Saturday.

Universal Insurance Stock Up 0.6%

Shares of UVE traded up $0.15 during midday trading on Friday, hitting $23.46. The company had a trading volume of 69,321 shares, compared to its average volume of 218,895. The company's 50 day moving average price is $25.82 and its 200 day moving average price is $23.57. The stock has a market cap of $664.39 million, a price-to-earnings ratio of 10.23 and a beta of 0.87. Universal Insurance has a 52 week low of $16.50 and a 52 week high of $28.49. The company has a quick ratio of 0.58, a current ratio of 0.58 and a debt-to-equity ratio of 0.22.

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

Insider Activity

In other Universal Insurance news, Director Jon Springer sold 30,000 shares of the business's stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $27.06, for a total transaction of $811,800.00. Following the completion of the transaction, 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 position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Chairman Sean P. Downes sold 25,000 shares of the business's stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $26.91, for a total transaction of $672,750.00. Following the transaction, the chairman directly owned 926,667 shares of the company's stock, valued at $24,936,608.97. The trade was a 2.63% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 75,000 shares of company stock valued at $2,011,350 over the last ninety days. Company insiders own 16.60% of the company's stock.

Institutional Trading of Universal Insurance

A number of institutional investors have recently made changes to their positions in UVE. Quarry LP bought a new stake in shares of Universal Insurance in the 1st quarter worth approximately $59,000. State of Wyoming bought a new stake in Universal Insurance in the first quarter worth approximately $64,000. KLP Kapitalforvaltning AS bought a new stake in Universal Insurance in the fourth quarter worth approximately $103,000. Aquatic Capital Management LLC bought a new stake in shares of Universal Insurance during the 4th quarter worth $121,000. Finally, Sunbelt Securities Inc. bought a new stake in shares of Universal Insurance during the 4th quarter worth $118,000. 66.61% of the stock is owned by institutional investors and hedge funds.

Universal Insurance Company Profile

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.