Universal Insurance (NYSE:UVE) Shares Up 9.6% After Strong Earnings

Universal Insurance Holdings, Inc. (NYSE:UVE)’s share price rose 9.6% on Wednesday following a stronger than expected earnings report. The company traded as high as $22.49 and last traded at $22.49. Approximately 253,082 shares traded hands during mid-day trading, an increase of 95% from the average daily volume of 129,611 shares. The stock had previously closed at $20.51.

The insurance provider reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.09 by $0.16. The business had revenue of $384.81 million during 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%.

Universal Insurance Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, March 14th. Investors of record on Friday, March 7th will be paid a dividend of $0.16 per share. 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 2.86%. The ex-dividend date of this dividend is Friday, March 7th. Universal Insurance’s dividend payout ratio (DPR) is currently 26.02%.

Analyst Ratings Changes

Separately, StockNews.com upgraded shares of Universal Insurance from a “buy” rating to a “strong-buy” rating in a research note on Monday.

Insider Buying and Selling

In other Universal Insurance news, Chairman Sean P. Downes sold 50,000 shares of Universal Insurance stock in a transaction on 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 transaction, the chairman now directly owns 985,320 shares in the company, valued at approximately $20,208,913.20. The trade was a 4.83 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Jon Springer sold 25,000 shares of Universal Insurance stock in a transaction on Thursday, December 19th. The shares were sold at an average price of $20.63, for a total transaction of $515,750.00. Following the completion of the transaction, the director now owns 383,228 shares in the company, valued at approximately $7,905,993.64. This represents a 6.12 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 17.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Covestor Ltd increased its stake in Universal Insurance by 240.1% in the third quarter. Covestor Ltd now owns 1,881 shares of the insurance provider’s stock valued at $42,000 after purchasing an additional 1,328 shares during the period. Quarry LP increased its stake in Universal Insurance by 55.6% in the third quarter. Quarry LP now owns 2,171 shares of the insurance provider’s stock valued at $48,000 after purchasing an additional 776 shares during the period. KLP Kapitalforvaltning AS acquired a new position in Universal Insurance in the fourth quarter valued at $103,000. Quantbot Technologies LP increased its stake in Universal Insurance by 45,981.8% in the fourth quarter. Quantbot Technologies LP now owns 5,069 shares of the insurance provider’s stock valued at $107,000 after purchasing an additional 5,058 shares during the period. Finally, Aquatic Capital Management LLC acquired a new position in shares of Universal Insurance during the fourth quarter worth about $121,000. 66.61% of the stock is currently owned by institutional investors and hedge funds.

Universal Insurance Trading Up 9.3 %

The company has a debt-to-equity ratio of 0.25, a current ratio of 0.51 and a quick ratio of 0.51. The business’s 50 day moving average price is $20.05 and its 200-day moving average price is $20.69. The firm has a market capitalization of $633.89 million, a price-to-earnings ratio of 9.11 and a beta of 0.91.

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.