Universal Insurance (NYSE:UVE) Sets New 12-Month High – Here’s Why

Universal Insurance Holdings Inc (NYSE:UVE)’s share price hit a new 52-week high during mid-day trading on Friday . The company traded as high as $41.96 and last traded at $41.26, with a volume of 735620 shares. The stock had previously closed at $39.47.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on UVE. Zacks Research cut shares of Universal Insurance from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 23rd. Weiss Ratings reiterated a “buy (b)” rating on shares of Universal Insurance in a research 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 research note on Saturday, May 2nd. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $40.00.

Universal Insurance Stock Performance

The firm has a market capitalization of $1.15 billion, a price-to-earnings ratio of 6.11 and a beta of 0.73. The company has a current ratio of 0.51, a quick ratio of 0.51 and a debt-to-equity ratio of 0.17. The stock’s 50-day moving average is $38.20 and its 200-day moving average is $34.59.

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

Universal Insurance Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 8th were issued a dividend of $0.16 per share. The ex-dividend date of this dividend was Friday, May 8th. This represents a $0.64 annualized dividend and a dividend yield of 1.6%. Universal Insurance’s dividend payout ratio (DPR) is 9.48%.

Insiders Place Their Bets

In related news, Chairman Sean P. Downes sold 20,000 shares of the business’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $38.22, for a total transaction of $764,400.00. Following the sale, the chairman owned 1,148,255 shares in the company, valued at $43,886,306.10. The trade was a 1.71% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. In the last 90 days, insiders sold 60,000 shares of company stock worth $2,332,800. Insiders own 15.00% of the company’s stock.

Institutional Trading of Universal Insurance

A number of hedge funds have recently made changes to their positions in the company. Millennium Management LLC grew its holdings in shares of Universal Insurance by 212.3% during the third quarter. Millennium Management LLC now owns 596,370 shares of the insurance provider’s stock worth $15,685,000 after purchasing an additional 405,403 shares during the last quarter. BNP Paribas Financial Markets boosted its position in Universal Insurance by 106.0% during the 3rd quarter. BNP Paribas Financial Markets now owns 280,957 shares of the insurance provider’s stock worth $7,389,000 after buying an additional 144,553 shares during the period. Geode Capital Management LLC boosted its position in Universal Insurance by 19.8% during the 4th quarter. Geode Capital Management LLC now owns 815,484 shares of the insurance provider’s stock worth $27,566,000 after buying an additional 134,805 shares during the period. Informed Momentum Co LLC acquired a new stake in Universal Insurance during the 4th quarter worth approximately $4,481,000. Finally, Vanguard Group Inc. grew its holdings in Universal Insurance by 5.9% during the 3rd quarter. Vanguard Group Inc. now owns 1,953,721 shares of the insurance provider’s stock worth $51,383,000 after acquiring an additional 108,660 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.