Universal Insurance (NYSE:UVE) Issues Quarterly Earnings Results, Beats Estimates By $1.57 EPS

Universal Insurance (NYSE:UVE) released its earnings results on Tuesday. The insurance provider reported $2.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.60 by $1.57, FiscalAI reports. Universal Insurance had a net margin of 7.74% and a return on equity of 28.25%. The company had revenue of $403.57 million for the quarter, compared to analyst estimates of $372.99 million.

Universal Insurance Trading Up 5.8%

UVE traded up $1.75 during trading on Tuesday, hitting $31.98. 273,082 shares of the company’s stock were exchanged, compared to its average volume of 175,693. Universal Insurance has a 1 year low of $19.96 and a 1 year high of $35.84. The stock has a 50 day moving average price of $31.53 and a 200 day moving average price of $29.72. The firm has a market cap of $897.15 million, a P/E ratio of 7.54 and a beta of 0.70. The company has a current ratio of 0.55, a quick ratio of 0.55 and a debt-to-equity ratio of 0.20.

Universal Insurance Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, March 6th will be given a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Friday, March 6th. Universal Insurance’s payout ratio is 15.09%.

Insider Activity at Universal Insurance

In other news, CEO Stephen Donaghy sold 25,000 shares of the stock in a transaction dated Monday, December 29th. The stock was sold at an average price of $34.07, for a total value of $851,750.00. Following the completion of the sale, the chief executive officer owned 679,961 shares in the company, valued at approximately $23,166,271.27. This trade represents a 3.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Richard D. Peterson sold 1,855 shares of the business’s stock in a transaction that occurred on Tuesday, December 30th. The stock was sold at an average price of $33.61, for a total value of $62,346.55. Following the transaction, the director directly owned 8,319 shares in the company, valued at $279,601.59. This trade represents a 18.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 46,855 shares of company stock worth $1,590,497. Corporate insiders own 17.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in UVE. Engineers Gate Manager LP bought a new position in shares of Universal Insurance during the fourth quarter worth about $304,000. Envestnet Asset Management Inc. lifted its stake in Universal Insurance by 22.2% during the third quarter. Envestnet Asset Management Inc. now owns 10,965 shares of the insurance provider’s stock worth $288,000 after purchasing an additional 1,995 shares during the last quarter. Quadrature Capital Ltd bought a new position in Universal Insurance during the fourth quarter worth $280,000. The Manufacturers Life Insurance Company acquired a new position in Universal Insurance in the second quarter worth $257,000. Finally, Mariner LLC acquired a new position in Universal Insurance in the fourth quarter worth $256,000. 66.61% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

UVE has been the topic of several recent analyst reports. Wall Street Zen raised shares of Universal Insurance from a “buy” rating to a “strong-buy” rating in a research note on Saturday, December 27th. Piper Sandler increased their price target on Universal Insurance from $35.00 to $40.00 and gave the stock an “overweight” rating in a research note on Monday, December 22nd. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Universal Insurance in a research report on Wednesday, January 21st. Finally, Zacks Research lowered Universal Insurance from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, December 23rd. Two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $40.00.

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.