Universal Insurance (NYSE:UVE) Sets New 12-Month High - Here's What Happened

Key Points

• Universal Insurance shares hit a new 52-week high, trading as high as $39.53 (last $39.25) and carry a MarketBeat consensus Buy rating with a $40.00 target.
• The company reported quarterly EPS of $2.00, beating estimates by $0.61, though revenue of $398.2M missed consensus; profitability remains strong with a 12.22% net margin and 39.07% ROE.
• Universal declared a quarterly dividend of $0.16 (1.6% yield) payable May 15, and insiders have recently sold shares but still own about 16.6% of the company.

Universal Insurance Holdings Inc (NYSE:UVE - Get Free Report) shares hit a new 52-week high during mid-day trading on Saturday . The stock traded as high as $39.53 and last traded at $39.2530, with a volume of 524525 shares changing hands. The stock had previously closed at $35.18.

Analyst Ratings Changes

A number of analysts recently issued reports on the stock. Zacks Research upgraded shares of Universal Insurance from a "hold" rating to a "strong-buy" rating in a research report on Friday, February 27th. Wall Street Zen upgraded Universal Insurance from a "buy" rating to a "strong-buy" rating in a report on Saturday, December 27th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Universal Insurance in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating and two have issued a Buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus target price of $40.00.

Universal Insurance Stock Performance

The firm has a market capitalization of $1.10 billion, a PE ratio of 5.82 and a beta of 0.69. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.52 and a current ratio of 0.52. The company's fifty day moving average price is $34.03 and its two-hundred day moving average price is $32.51.

Universal Insurance (NYSE:UVE - Get Free Report) last released its earnings results on Thursday, April 23rd. The insurance provider reported $2.00 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.39 by $0.61. Universal Insurance had a net margin of 12.22% and a return on equity of 39.07%. The firm had revenue of $398.16 million during the quarter, compared to the consensus estimate of $481.09 million. As a group, equities analysts expect that Universal Insurance Holdings Inc will post 4 earnings per share for the current year.

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 paid a dividend of $0.16 per share. The ex-dividend date of this dividend is Friday, May 8th. This represents a $0.64 annualized dividend and a dividend yield of 1.6%. Universal Insurance's payout ratio is currently 10.14%.

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 stock was sold at an average price of $34.60, for a total transaction of $692,000.00. Following the completion of the sale, the chairman directly owned 1,206,788 shares in the company, valued at $41,754,864.80. This represents a 1.63% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CAO Kimberly D. Campos sold 879 shares of the stock in a transaction 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 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. Corporate insiders own 16.60% of the company's stock.

Hedge Funds Weigh In On Universal Insurance

Large investors have recently modified their holdings of the company. State of Alaska Department of Revenue purchased a new stake in shares of Universal Insurance during the 3rd quarter worth about $32,000. Torren Management LLC purchased a new position in Universal Insurance in the fourth quarter valued at approximately $54,000. Tower Research Capital LLC TRC raised its holdings in 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 valued at $74,000 after buying an additional 2,114 shares during the period. IFP Advisors Inc lifted its position in Universal Insurance by 492.4% during the fourth quarter. IFP Advisors Inc now owns 2,796 shares of the insurance provider's stock valued at $95,000 after buying an additional 2,324 shares in the last quarter. Finally, Root Financial Partners LLC lifted its position in Universal Insurance by 170,750.0% during the first quarter. Root Financial Partners LLC now owns 3,417 shares of the insurance provider's stock valued at $117,000 after buying an additional 3,415 shares in the last quarter. 66.61% of the stock is currently owned by hedge funds and other institutional investors.

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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