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

Key Points

• Wall Street Zen downgraded Universal Insurance (UVE) from a "strong-buy" to a "buy," while the stock's consensus remains a Buy with an average price target of $40.00.
• The company reported an EPS of $2.00 for the quarter (beat by $0.61) but missed revenue expectations at $398.16M versus $481.09M, and posted a 37.51% ROE and 12.22% net margin.
• Insiders sold 40,879 shares over the past 90 days (including the chairman's 20,000-share sale); the stock trades near $39.78 with a market cap of about $1.11B and a low P/E of 5.89.

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 note issued to investors on Saturday.

A number of other brokerages also recently commented on UVE. Zacks Research upgraded Universal Insurance from a "hold" rating to a "strong-buy" rating in a research report on Friday, February 27th. Weiss Ratings reissued a "buy (b)" rating on shares of Universal Insurance in a research note on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating and two have given a Buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $40.00.

Universal Insurance Price Performance

Shares of NYSE:UVE opened at $39.78 on Friday. Universal Insurance has a one year low of $21.96 and a one year high of $41.96. The stock has a fifty day moving average of $34.72 and a 200-day moving average of $32.80. The company has a market capitalization of $1.11 billion, a PE ratio of 5.89 and a beta of 0.77. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.52 and a current ratio of 0.51.

Universal Insurance (NYSE:UVE - Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The insurance provider reported $2.00 EPS for the quarter, beating analysts' consensus estimates of $1.39 by $0.61. Universal Insurance had a return on equity of 37.51% and a net margin of 12.22%.The company had revenue of $398.16 million during the quarter, compared to the consensus estimate of $481.09 million. As a group, equities analysts anticipate that Universal Insurance will post 4.75 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Chairman Sean P. Downes sold 20,000 shares of the company's stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $34.60, for a total value of $692,000.00. Following the transaction, the chairman directly owned 1,206,788 shares of the company's stock, valued at approximately $41,754,864.80. This represents a 1.63% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Kimberly D. Campos sold 879 shares of the company's stock in a transaction on Thursday, March 26th. The stock was sold at an average price of $33.84, for a total transaction of $29,745.36. Following the completion of the transaction, the chief accounting officer directly owned 7,422 shares in the company, valued at $251,160.48. This trade represents a 10.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 40,879 shares of company stock worth $1,515,545 over the last ninety days. 16.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Universal Insurance

A number of hedge funds have recently modified their holdings of UVE. State of Alaska Department of Revenue acquired a new position in shares of Universal Insurance in the third quarter worth $32,000. Torren Management LLC acquired a new position in shares of Universal Insurance in the fourth quarter worth $54,000. Tower Research Capital LLC TRC increased its stake in shares of Universal Insurance by 390.0% in the second quarter. Tower Research Capital LLC TRC now owns 2,656 shares of the insurance provider's stock worth $74,000 after acquiring an additional 2,114 shares during the last quarter. IFP Advisors Inc increased its stake in shares of Universal Insurance by 492.4% in the fourth quarter. IFP Advisors Inc now owns 2,796 shares of the insurance provider's stock worth $95,000 after acquiring an additional 2,324 shares during the last quarter. Finally, Root Financial Partners LLC increased its stake in shares of Universal Insurance by 170,750.0% in the first quarter. Root Financial Partners LLC now owns 3,417 shares of the insurance provider's stock worth $117,000 after acquiring an additional 3,415 shares during the last quarter. 66.61% of the stock is owned by institutional investors and hedge funds.

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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