Universal Insurance (NYSE:UVE) Shares Gap Up on Better-Than-Expected Earnings

Shares of Universal Insurance Holdings Inc (NYSE:UVE) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. 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 trading hands.

The insurance provider reported $1.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.57 by $0.27. The company had revenue of $419.38 million during the quarter, compared to analysts’ expectations of $614.62 million. Universal Insurance had a net margin of 13.49% and a return on equity of 39.29%.

Universal Insurance Announces Dividend

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

Key Universal Insurance News

Here are the key news stories impacting Universal Insurance this week:

• Positive Sentiment: Universal Insurance posted Q2 EPS of $1.84, easily topping analyst estimates and marking a solid year-over-year increase, which signals stronger-than-expected earnings momentum. Article Title
• Positive Sentiment: Coverage highlights say earnings jumped 49.6% on lower losses, premium growth, and stronger investment income, suggesting core insurance operations are improving. Article Title
• Positive Sentiment: The company reported a 37.51% return on equity and 12.22% net margin, reinforcing the view that Universal Insurance is generating strong profitability relative to peers. Article Title
• Neutral Sentiment: Revenue came in at $419.38 million, which was below some analyst expectations, but the earnings beat appears to be the main driver for investor sentiment. Article Title

Analysts Set New Price Targets

Several equities analysts have recently weighed in on UVE shares. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Universal Insurance in a research note on Friday, July 17th. Zacks Research downgraded shares of Universal Insurance from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 23rd. Wall Street Zen lowered shares of Universal Insurance from a “strong-buy” rating to a “buy” rating in a report on Saturday, May 2nd. Finally, Piper Sandler cut shares of Universal Insurance from an “overweight” rating to a “neutral” rating and set a $44.00 price target on the stock. in a research report on Wednesday, July 15th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Universal Insurance currently has an average rating of “Hold” and a consensus price target of $44.00.

Insider Transactions at Universal Insurance

In other news, Chairman Sean P. Downes sold 20,000 shares of Universal Insurance stock in a transaction that occurred on Thursday, June 11th. The shares were 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. This trade represents a 1.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders have sold a total of 60,000 shares of company stock valued at $2,332,800 over the last three months. 15.00% of the stock is owned by company insiders.

Institutional Investors Weigh In On Universal Insurance

Several hedge funds and other institutional investors have recently added to or reduced their stakes in UVE. Bank of America Corp DE lifted its holdings in Universal Insurance by 46.0% in the 1st quarter. Bank of America Corp DE now owns 143,557 shares of the insurance provider’s stock worth $4,904,000 after buying an additional 45,224 shares in the last quarter. Empowered Funds LLC grew its stake in shares of Universal Insurance by 7.4% during the first quarter. Empowered Funds LLC now owns 143,096 shares of the insurance provider’s stock valued at $4,888,000 after acquiring an additional 9,841 shares in the last quarter. Quantinno Capital Management LP grew its stake in shares of Universal Insurance by 20.2% during the first quarter. Quantinno Capital Management LP now owns 21,716 shares of the insurance provider’s stock valued at $742,000 after acquiring an additional 3,646 shares in the last quarter. Lazard Asset Management LLC increased its position in shares of Universal Insurance by 4.7% during the first quarter. Lazard Asset Management LLC now owns 116,196 shares of the insurance provider’s stock worth $3,969,000 after acquiring an additional 5,237 shares during the last quarter. Finally, Public Employees Retirement System of Ohio increased its position in shares of Universal Insurance by 1.5% during the first quarter. Public Employees Retirement System of Ohio now owns 23,509 shares of the insurance provider’s stock worth $803,000 after acquiring an additional 348 shares during the last quarter. Hedge funds and other institutional investors own 66.61% of the company’s stock.

Universal Insurance Stock Performance

The company has a quick ratio of 0.51, a current ratio of 0.51 and a debt-to-equity ratio of 0.17. The company has a 50 day moving average of $39.21 and a 200 day moving average of $35.61. The firm has a market cap of $1.16 billion, a price-to-earnings ratio of 5.49 and a beta of 0.72.

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.