Universal Insurance (NYSE:UVE) Trading 5.8% Higher – Here’s Why

Universal Insurance Holdings Inc (NYSE:UVE) shares traded up 5.8% during trading on Friday . The stock traded as high as $37.21 and last traded at $37.5390. 41,477 shares changed hands during trading, a decline of 79% from the average session volume of 195,787 shares. The stock had previously closed at $35.48.

Analysts Set New Price Targets

Several research analysts recently commented on the stock. Zacks Research upgraded shares of Universal Insurance from a “hold” rating to a “strong-buy” rating in a report on Friday, February 27th. Weiss Ratings restated a “buy (b)” rating on shares of Universal Insurance in a report on Monday, April 20th. Finally, Wall Street Zen cut shares of Universal Insurance from a “strong-buy” rating to a “buy” rating in a report on Saturday, May 2nd. One equities research analyst has rated the stock with a Strong Buy rating and two have assigned a Buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus target price of $40.00.

Universal Insurance Price Performance

The company has a debt-to-equity ratio of 0.17, a current ratio of 0.51 and a quick ratio of 0.51. The company’s 50-day simple moving average is $36.82 and its 200-day simple moving average is $33.99. The stock has a market capitalization of $1.04 billion, a P/E ratio of 5.53 and a beta of 0.73.

Universal Insurance (NYSE:UVE) last posted its quarterly earnings results on Thursday, April 23rd. The insurance provider reported $2.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.39 by $0.61. Universal Insurance had a net margin of 12.22% and a return on equity of 37.51%. The firm had revenue of $398.16 million for the quarter, compared to analyst estimates of $481.09 million. As a group, sell-side analysts expect that Universal Insurance Holdings Inc will post 4.63 EPS for the current fiscal year.

Universal Insurance Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 8th were given a $0.16 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $0.64 annualized dividend and a dividend yield of 1.7%. Universal Insurance’s dividend payout ratio is presently 9.48%.

Insider Activity

In other news, Chairman Sean P. Downes sold 20,000 shares of the stock in a transaction dated 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 $41,754,864.80. This represents a 1.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Kimberly D. Campos sold 879 shares of the stock in a transaction dated Thursday, March 26th. The shares were 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. The trade was a 10.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 60,879 shares of company stock worth $2,290,145 over the last three months. Insiders own 15.00% of the company’s stock.

Hedge Funds Weigh In On Universal Insurance

Large investors have recently modified their holdings of the stock. Principal Financial Group Inc. raised its position in shares of Universal Insurance by 72.6% in the third quarter. Principal Financial Group Inc. now owns 39,990 shares of the insurance provider’s stock valued at $1,052,000 after purchasing an additional 16,820 shares during the period. Sowell Financial Services LLC bought a new position in Universal Insurance during the fourth quarter worth about $2,388,000. Allianz Asset Management GmbH increased its position in Universal Insurance by 219.5% during the third quarter. Allianz Asset Management GmbH now owns 62,898 shares of the insurance provider’s stock worth $1,654,000 after acquiring an additional 43,213 shares during the period. Pursuit Wealth Management LLC bought a new position in Universal Insurance during the fourth quarter worth about $1,745,000. Finally, Vanguard Group Inc. increased its position in Universal Insurance by 2.8% during the fourth quarter. Vanguard Group Inc. now owns 2,007,725 shares of the insurance provider’s stock worth $67,861,000 after acquiring an additional 54,004 shares during the period. 66.61% of the stock is owned by 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.