Universal Insurance (NYSE:UVE) Trading Up 3.1% – Should You Buy?

Universal Insurance Holdings, Inc. (NYSE:UVE)’s share price traded up 3.1% on Wednesday . The stock traded as high as $22.61 and last traded at $22.63. 43,084 shares changed hands during mid-day trading, a decline of 74% from the average session volume of 168,853 shares. The stock had previously closed at $21.94.

Analysts Set New Price Targets

Separately, StockNews.com downgraded Universal Insurance from a “strong-buy” rating to a “buy” rating in a report on Wednesday.

Universal Insurance Trading Up 2.4 %

The stock has a market cap of $657.59 million, a P/E ratio of 9.51 and a beta of 0.84. The firm’s 50 day simple moving average is $20.77 and its two-hundred day simple moving average is $20.86. The company has a quick ratio of 0.51, a current ratio of 0.51 and a debt-to-equity ratio of 0.25.

Universal Insurance (NYSE:UVE) last issued its earnings results on Tuesday, February 25th. The insurance provider reported $0.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.09 by $0.16. The firm had revenue of $384.81 million for the quarter, compared to analysts’ expectations of $349.91 million. Universal Insurance had a net margin of 4.82% and a return on equity of 15.43%. As a group, equities research analysts predict that Universal Insurance Holdings, Inc. will post 1.66 earnings per share for the current fiscal year.

Universal Insurance Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 14th. Shareholders of record on Friday, March 7th were given a $0.16 dividend. The ex-dividend date was Friday, March 7th. This is a positive change from Universal Insurance’s previous quarterly dividend of $0.13. This represents a $0.64 annualized dividend and a yield of 2.73%. Universal Insurance’s dividend payout ratio (DPR) is currently 32.16%.

Insider Activity

In related news, Chairman Sean P. Downes sold 50,000 shares of Universal Insurance stock in a transaction dated Monday, December 30th. The shares were sold at an average price of $20.51, for a total value of $1,025,500.00. Following the sale, the chairman now directly owns 985,320 shares in the company, valued at $20,208,913.20. This trade represents a 4.83 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Over the last quarter, insiders sold 90,000 shares of company stock valued at $1,908,700. 17.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Universal Insurance

Several large investors have recently made changes to their positions in the company. Geode Capital Management LLC grew its holdings in Universal Insurance by 7.7% in the 3rd quarter. Geode Capital Management LLC now owns 689,767 shares of the insurance provider’s stock worth $15,289,000 after buying an additional 49,123 shares in the last quarter. CWA Asset Management Group LLC grew its stake in shares of Universal Insurance by 100.0% in the fourth quarter. CWA Asset Management Group LLC now owns 570,615 shares of the insurance provider’s stock worth $12,017,000 after purchasing an additional 285,338 shares in the last quarter. Barclays PLC increased its holdings in shares of Universal Insurance by 69.5% during the third quarter. Barclays PLC now owns 68,969 shares of the insurance provider’s stock valued at $1,528,000 after purchasing an additional 28,278 shares during the period. HighTower Advisors LLC acquired a new position in shares of Universal Insurance during the third quarter valued at $636,000. Finally, Jane Street Group LLC lifted its holdings in Universal Insurance by 2,142.1% in the third quarter. Jane Street Group LLC now owns 59,774 shares of the insurance provider’s stock worth $1,325,000 after purchasing an additional 57,108 shares during the period. Institutional investors and hedge funds own 66.61% of the company’s stock.

About Universal Insurance

Universal Insurance Holdings, Inc, together with its subsidiaries, operates as an integrated insurance holding company in the United States. It develops, markets, and underwrites insurance products for personal residential insurance, such as homeowners, renters/tenants, condo unit owners, and dwelling/fire; and offers allied lines, coverage for other structures, and personal property, liability, and personal articles coverages.