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

Universal Insurance Holdings Inc (NYSE:UVE)’s stock price gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $35.18, but opened at $37.50. Universal Insurance shares last traded at $38.4620, with a volume of 63,939 shares trading hands.

The insurance provider reported $2.00 EPS for the quarter, beating the consensus estimate 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 analysts’ expectations of $481.09 million.

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

Wall Street Analyst Weigh In

A number of research firms recently weighed in on UVE. Wall Street Zen raised Universal Insurance from a “buy” rating to a “strong-buy” rating in a research report on Saturday, December 27th. Zacks Research raised Universal Insurance from a “hold” rating to a “strong-buy” rating in a report on Friday, February 27th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Universal Insurance in a report on Monday. 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. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $40.00.

Insider Transactions at Universal Insurance

In other news, Chairman Sean P. Downes sold 20,000 shares of the firm’s stock in a transaction dated Wednesday, March 25th. The shares were sold at an average price of $34.60, for a total transaction of $692,000.00. Following the completion of the transaction, the chairman directly owned 1,206,788 shares of the company’s stock, valued at approximately $41,754,864.80. This trade represents a 1.63% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Kimberly D. Campos sold 879 shares of Universal Insurance 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 sale, the chief accounting officer owned 7,422 shares in the company, valued at approximately $251,160.48. This trade represents a 10.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 16.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Universal Insurance

Institutional investors have recently added to or reduced their stakes in the stock. State of Alaska Department of Revenue acquired a new position in shares of Universal Insurance in the 3rd quarter worth approximately $32,000. Torren Management LLC acquired a new stake in Universal Insurance in the 4th quarter valued at $54,000. Tower Research Capital LLC TRC grew its position 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 acquiring an additional 2,114 shares during the period. IFP Advisors Inc grew its position in Universal Insurance by 492.4% in the fourth quarter. IFP Advisors Inc now owns 2,796 shares of the insurance provider’s stock valued at $95,000 after acquiring an additional 2,324 shares during the period. Finally, Root Financial Partners LLC raised its stake 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 worth $117,000 after acquiring an additional 3,415 shares in the last quarter. 66.61% of the stock is owned by institutional investors and hedge funds.

Universal Insurance Stock Up 11.6%

The stock has a market capitalization of $1.10 billion, a price-to-earnings ratio of 5.82 and a beta of 0.69. The firm has a 50 day simple moving average of $34.03 and a 200-day simple moving average of $32.51. The company has a debt-to-equity ratio of 0.18, a current ratio of 0.52 and a quick ratio of 0.52.

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.