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

Key Points

• Wall Street Zen downgraded Universal Insurance from “strong buy” to “buy,” while the broader analyst consensus remains “hold” with a $45 price target.
• Universal Insurance opened at $44.06, near its 12-month high of $45.15, and reported quarterly EPS of $1.84, exceeding the $1.57 consensus estimate; however, revenue of $419.38 million fell below expectations.
• Chairman Sean P. Downes sold 20,000 shares for approximately $885,400, while insiders continue to own 15% of the company and institutional investors hold 66.61%.

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 report released on Sunday.

A number of other equities analysts have also recently commented on the stock. Zacks Research cut shares of Universal Insurance from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 23rd. Piper Sandler increased their price objective on shares of Universal Insurance from $44.00 to $45.00 and gave the company a "neutral" rating in a research report on Monday, July 27th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Universal Insurance in a research note 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. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $45.00.

Universal Insurance Price Performance

NYSE:UVE opened at $44.06 on Friday. The company has a quick ratio of 0.51, a current ratio of 0.57 and a debt-to-equity ratio of 0.15. The stock's 50 day moving average price is $40.28 and its two-hundred day moving average price is $36.58. The firm has a market capitalization of $1.23 billion, a price-to-earnings ratio of 5.81 and a beta of 0.72. Universal Insurance has a 12-month low of $23.25 and a 12-month high of $45.15.

Universal Insurance (NYSE:UVE - Get Free Report) last issued its earnings results on Thursday, July 23rd. The insurance provider reported $1.84 EPS for the quarter, topping the consensus estimate of $1.57 by $0.27. The company 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%. On average, analysts anticipate that Universal Insurance will post 4.85 earnings per share for the current year.

Insiders Place Their Bets

In related news, Chairman Sean P. Downes sold 20,000 shares of the business's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $44.27, for a total value of $885,400.00. Following the completion of the sale, the chairman directly owned 1,104,645 shares in the company, valued at $48,902,634.15. The trade was a 1.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Over the last ninety days, insiders sold 60,000 shares of company stock worth $2,424,400. Company insiders own 15.00% of the company's stock.

Institutional Investors Weigh In On Universal Insurance

A number of hedge funds and other institutional investors have recently modified their holdings of UVE. Renaissancere Holdings Ltd. acquired a new position in shares of Universal Insurance in the second quarter valued at about $24,144,769,000. BlackRock Inc. bought a new position in Universal Insurance during the second quarter worth about $111,007,000. Occidental Asset Management LLC acquired a new stake in Universal Insurance in the 2nd quarter worth about $427,000. Deutsche Bank AG acquired a new stake in Universal Insurance in the 2nd quarter worth about $1,098,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Universal Insurance during the 2nd quarter worth approximately $8,104,000. Institutional investors and hedge funds 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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