Universal Insurance (NYSE:UVE) Raised to Strong-Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Universal Insurance to “strong-buy” from “buy,” but the broader analyst consensus remains “Hold,” with an average price target of $45.00.
• Universal Insurance reported quarterly EPS of $1.84, beating estimates of $1.57, while revenue of $419.38 million fell short of the $614.62 million consensus estimate.
• The stock opened at $43.53, near its 52-week high of $45.15; institutional investors own 66.61% of shares, while Chairman Sean P. Downes recently sold 20,000 shares.

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

Other research analysts also recently issued research reports about the company. Zacks Research downgraded Universal Insurance from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 23rd. Weiss Ratings reiterated a "buy (b)" rating on shares of Universal Insurance in a research note on Friday, July 17th. Finally, Piper Sandler raised their target price on shares of Universal Insurance from $44.00 to $45.00 and gave the company a "neutral" rating in a report on Monday. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $45.00.

Universal Insurance Price Performance

Universal Insurance stock opened at $43.53 on Friday. The firm has a market cap of $1.22 billion, a PE ratio of 5.74 and a beta of 0.72. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.57 and a quick ratio of 0.51. The stock's fifty day moving average price is $39.66 and its two-hundred day moving average price is $36.08. Universal Insurance has a one year low of $22.87 and a one year high of $45.15.

Universal Insurance (NYSE:UVE - Get Free Report) last released its earnings results 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. The firm had revenue of $419.38 million during the quarter, compared to the consensus estimate of $614.62 million. Universal Insurance had a return on equity of 37.67% and a net margin of 13.49%. As a group, research analysts expect that Universal Insurance will post 4.85 EPS for the current fiscal year.

Insider Activity

In other news, Chairman Sean P. Downes sold 20,000 shares of Universal Insurance stock in a transaction 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 transaction, the chairman owned 1,148,255 shares in the company, valued at approximately $43,886,306.10. This trade represents a 1.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 15.00% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Bank of America Corp DE raised its stake in Universal Insurance by 46.0% during the first quarter. Bank of America Corp DE now owns 143,557 shares of the insurance provider's stock worth $4,904,000 after acquiring an additional 45,224 shares in the last quarter. Empowered Funds LLC increased its position in Universal Insurance by 7.4% during the 1st quarter. Empowered Funds LLC now owns 143,096 shares of the insurance provider's stock worth $4,888,000 after purchasing an additional 9,841 shares in the last quarter. Quantinno Capital Management LP lifted its stake in Universal Insurance by 20.2% in the 1st quarter. Quantinno Capital Management LP now owns 21,716 shares of the insurance provider's stock valued at $742,000 after purchasing an additional 3,646 shares during the last quarter. Lazard Asset Management LLC boosted its position in Universal Insurance by 4.7% in the first quarter. Lazard Asset Management LLC now owns 116,196 shares of the insurance provider's stock valued at $3,969,000 after buying an additional 5,237 shares in the last quarter. Finally, Public Employees Retirement System of Ohio grew its stake in shares of Universal Insurance by 1.5% during 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. Institutional investors own 66.61% of the company's stock.

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.

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