Universal Insurance (NYSE:UVE) Issues Quarterly Earnings Results

Key Points

• Q1 EPS beat: Universal Insurance reported $2.00 EPS, beating the $1.39 consensus by $0.61, while revenue missed at $398.16M versus $481.09M; the quarter showed a net margin of 11.41% and ROE of 37.28%.
• Dividend and share action: The company announced a $0.16 quarterly dividend (annualized $0.64, yield 1.8%, ex-dividend May 8), and shares rose about 3.3% to open near $35.22 with a P/E of 5.58 and market cap ≈ $986M.
• Insider sales and analyst view: Senior executives recently sold shares (Chairman sold 20,000), insiders still own 16.6% while institutions hold ~66.6%, and analysts rate the stock a consensus "Buy" with a $40 target and several recent upgrades.

Universal Insurance (NYSE:UVE - Get Free Report) posted its quarterly earnings results on Thursday. The insurance provider reported $2.00 EPS for the quarter, topping the consensus estimate of $1.39 by $0.61, FiscalAI reports. Universal Insurance had a net margin of 11.41% and a return on equity of 37.28%. The company had revenue of $398.16 million during the quarter, compared to analysts' expectations of $481.09 million.

Universal Insurance Stock Up 3.3%

Shares of NYSE:UVE opened at $35.22 on Friday. The firm has a 50 day simple moving average of $33.87 and a 200-day simple moving average of $32.44. Universal Insurance has a twelve month low of $21.96 and a twelve month high of $36.68. The company has a current ratio of 0.52, a quick ratio of 0.52 and a debt-to-equity ratio of 0.18. The company has a market capitalization of $986.37 million, a PE ratio of 5.58 and a beta of 0.69.

Universal Insurance Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Friday, May 8th will be given a dividend of $0.16 per share. This represents a $0.64 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Friday, May 8th. Universal Insurance's payout ratio is currently 10.14%.

Insiders Place Their Bets

In related news, Chairman Sean P. Downes sold 20,000 shares of the firm's stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $34.60, for a total transaction of $692,000.00. Following the transaction, the chairman owned 1,206,788 shares in the company, valued at $41,754,864.80. This trade represents a 1.63% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CAO Kimberly D. Campos sold 879 shares of the firm's stock in a transaction that occurred on Thursday, March 26th. The stock was sold at an average price of $33.84, for a total value of $29,745.36. Following the transaction, the chief accounting officer owned 7,422 shares in the company, valued at $251,160.48. This represents a 10.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 16.60% of the company's stock.

Institutional Investors Weigh In On Universal Insurance

Large investors have recently modified their holdings of the company. Los Angeles Capital Management LLC raised its position in Universal Insurance by 1.3% in the fourth quarter. Los Angeles Capital Management LLC now owns 30,712 shares of the insurance provider's stock worth $965,000 after acquiring an additional 405 shares in the last quarter. Susquehanna Fundamental Investments LLC boosted its position in shares of Universal Insurance by 5.2% during the 4th quarter. Susquehanna Fundamental Investments LLC now owns 9,674 shares of the insurance provider's stock worth $327,000 after purchasing an additional 474 shares in the last quarter. Osaic Holdings Inc. boosted its position in shares of Universal Insurance by 11.3% during the 2nd quarter. Osaic Holdings Inc. now owns 5,249 shares of the insurance provider's stock worth $146,000 after purchasing an additional 534 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Universal Insurance by 4.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,976 shares of the insurance provider's stock worth $331,000 after purchasing an additional 630 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in shares of Universal Insurance by 2.0% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 32,920 shares of the insurance provider's stock worth $1,113,000 after purchasing an additional 657 shares during the period. 66.61% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on UVE shares. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Universal Insurance in a research report on Monday. Wall Street Zen upgraded Universal Insurance from a "buy" rating to a "strong-buy" rating in a research note on Saturday, December 27th. Finally, Zacks Research raised Universal Insurance from a "hold" rating to a "strong-buy" rating in a report on Friday, February 27th. One equities research analyst has rated the stock with a Strong Buy rating and two have given a Buy rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $40.00.

Universal Insurance Company Profile

Universal Insurance Holdings, Inc NYSE: UVE is a property and casualty insurance holding company headquartered in Jacksonville, Florida. The company underwrites homeowners and other residential property insurance products to protect against natural catastrophes such as hurricanes, windstorms and fires. It distributes policies primarily through a network of independent agents and brokers, offering coverage for primary residences, secondary homes, condominiums, vacant dwellings and rental properties across its service territory.

In addition to personal lines, Universal provides commercial property and casualty insurance tailored to small businesses and institutional clients.