Universal Insurance (NYSE:UVE) Posts Earnings Results, Beats Expectations By $0.22 EPS

Key Points

• Universal Insurance reported quarterly EPS of $1.84, beating analyst expectations by $0.22. However, revenue came in at $419.38 million, below the consensus estimate of $614.62 million.
• The company announced a quarterly dividend of $0.16 per share, payable on August 7 to shareholders of record on July 31. That works out to an annualized dividend of $0.64 and a yield of about 1.7%.
• Analysts currently rate UVE as Hold overall, with an average price target of $44.00. Recent rating changes were mixed, including several downgrades, while the stock traded around $37.76 after the earnings release.

Universal Insurance (NYSE:UVE - Get Free Report) posted its earnings results on Thursday. The insurance provider reported $1.84 earnings per share for the quarter, beating the consensus estimate of $1.62 by $0.22, FiscalAI reports. Universal Insurance had a net margin of 12.22% and a return on equity of 37.51%. The firm had revenue of $419.38 million during the quarter, compared to analyst estimates of $614.62 million.

Universal Insurance Price Performance

UVE traded down $0.04 on Thursday, hitting $37.76. 176,525 shares of the company's stock were exchanged, compared to its average volume of 202,932. The stock has a market cap of $1.05 billion, a price-to-earnings ratio of 5.59 and a beta of 0.72. Universal Insurance has a fifty-two week low of $21.96 and a fifty-two week high of $43.96. The firm has a 50-day moving average price of $39.18 and a 200-day moving average price of $35.53. The company has a current ratio of 0.51, a quick ratio of 0.51 and a debt-to-equity ratio of 0.17.

Universal Insurance Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Friday, July 31st will be paid a $0.16 dividend. This represents a $0.64 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Friday, July 31st. Universal Insurance's dividend payout ratio is currently 9.48%.

Insider Activity

In related news, Chairman Sean P. Downes sold 20,000 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $38.22, for a total value of $764,400.00. Following the completion of the sale, the chairman owned 1,148,255 shares of the company's stock, valued at approximately $43,886,306.10. This trade represents a 1.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders sold 60,000 shares of company stock valued at $2,332,800 in the last ninety days. 15.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Universal Insurance

Hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its position in shares of Universal Insurance by 5.9% during the 3rd quarter. Vanguard Group Inc. now owns 1,953,721 shares of the insurance provider's stock worth $51,383,000 after purchasing an additional 108,660 shares during the last quarter. Geode Capital Management LLC boosted its position in Universal Insurance by 19.8% in the 4th quarter. Geode Capital Management LLC now owns 815,484 shares of the insurance provider's stock valued at $27,566,000 after buying an additional 134,805 shares during the period. Goldman Sachs Group Inc. grew its stake in Universal Insurance by 9.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 805,199 shares of the insurance provider's stock worth $19,083,000 after purchasing an additional 69,289 shares in the last quarter. Millennium Management LLC lifted its stake in Universal Insurance by 212.3% in the third quarter. Millennium Management LLC now owns 596,370 shares of the insurance provider's stock worth $15,685,000 after acquiring an additional 405,403 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its holdings in Universal Insurance by 11.5% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 506,683 shares of the insurance provider's stock worth $13,326,000 after acquiring an additional 52,187 shares in the last quarter. Hedge funds and other institutional investors own 66.61% of the company's stock.

Analyst Ratings Changes

UVE has been the subject of a number of analyst reports. Wall Street Zen downgraded shares of Universal Insurance from a "strong-buy" rating to a "buy" rating in a research report on Saturday, May 2nd. Piper Sandler downgraded Universal Insurance from an "overweight" rating to a "neutral" rating and set a $44.00 price target on the stock. in a research report on Wednesday, July 15th. Zacks Research cut Universal Insurance from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 23rd. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Universal Insurance in a research report on Friday, July 17th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Universal Insurance presently has a consensus rating of "Hold" and an average target price of $44.00.

About Universal Insurance

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.

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