Universal Insurance (NYSE:UVE) Shares Gap Up on Earnings Beat

Universal Insurance Holdings Inc (NYSE:UVE)’s share price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $37.68, but opened at $39.75. Universal Insurance shares last traded at $40.9840, with a volume of 25,953 shares traded.

The insurance provider reported $1.84 earnings per share for the quarter, topping analysts’ consensus estimates of $1.57 by $0.27. Universal Insurance had a return on equity of 37.51% and a net margin of 12.22%.The business had revenue of $419.38 million for the quarter, compared to analyst estimates of $614.62 million.

Universal Insurance Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Friday, July 31st will be given a $0.16 dividend. This represents a $0.64 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Friday, July 31st. Universal Insurance’s dividend payout ratio is 9.48%.

Analyst Ratings Changes

A number of analysts have recently issued reports on the stock. Wall Street Zen downgraded shares of Universal Insurance from a “strong-buy” rating to a “buy” rating in a report on Saturday, May 2nd. Piper Sandler lowered Universal Insurance from an “overweight” rating to a “neutral” rating and set a $44.00 price target for the company. in a research note on Wednesday, July 15th. Zacks Research lowered Universal Insurance from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 23rd. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Universal Insurance in a report 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. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $44.00.

Insider Activity at Universal Insurance

In other news, Chairman Sean P. Downes sold 20,000 shares of Universal Insurance stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $38.22, for a total value of $764,400.00. Following the transaction, the chairman owned 1,148,255 shares in the company, valued at approximately $43,886,306.10. The trade was a 1.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders sold a total of 60,000 shares of company stock valued at $2,332,800 in the last quarter. 15.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Universal Insurance

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Millennium Management LLC lifted its position in Universal Insurance by 212.3% in the third quarter. Millennium Management LLC now owns 596,370 shares of the insurance provider’s stock valued at $15,685,000 after purchasing an additional 405,403 shares during the last quarter. BNP Paribas Financial Markets increased its stake in shares of Universal Insurance by 106.0% in the third 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 raised its holdings 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 valued at $27,566,000 after buying an additional 134,805 shares during the last quarter. Informed Momentum Co LLC bought a new stake in Universal Insurance during the 4th quarter valued at $4,481,000. Finally, Vanguard Group Inc. boosted its position 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 valued at $51,383,000 after buying an additional 108,660 shares during the period. 66.61% of the stock is currently owned by institutional investors.

Universal Insurance Stock Performance

The business’s fifty day simple moving average is $39.15 and its 200-day simple moving average is $35.57. The firm has a market cap of $1.16 billion, a P/E ratio of 6.09 and a beta of 0.72. The company has a current ratio of 0.51, a quick ratio of 0.51 and a debt-to-equity ratio of 0.17.

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.