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

Shares of Universal Insurance Holdings Inc (NYSE:UVE) gapped up before the market opened on Friday following a stronger than expected earnings report. 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 (EPS) for the quarter, topping the consensus estimate of $1.57 by $0.27. Universal Insurance had a return on equity of 39.29% and a net margin of 13.49%.The company had revenue of $419.38 million for the quarter, compared to analyst estimates of $614.62 million.

Universal Insurance Announces Dividend

The company also recently announced 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. The ex-dividend date of this dividend is Friday, July 31st. This represents a $0.64 dividend on an annualized basis and a dividend yield of 1.5%. Universal Insurance’s dividend payout ratio is 8.44%.

Trending Headlines about Universal Insurance

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

Wall Street Analyst Weigh In

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

Insiders Place Their Bets

In other Universal Insurance news, Chairman Sean P. Downes sold 20,000 shares of the business’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $38.22, for a total value of $764,400.00. Following the transaction, the chairman directly owned 1,148,255 shares of the company’s stock, valued at approximately $43,886,306.10. The trade was a 1.71% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. In the last 90 days, insiders have sold 60,000 shares of company stock valued at $2,332,800. Company insiders own 15.00% of the company’s stock.

Institutional Trading of Universal Insurance

Hedge funds and other institutional investors have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Universal Insurance by 4.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,976 shares of the insurance provider’s stock worth $331,000 after acquiring an additional 630 shares during the period. Millennium Management LLC lifted its position in Universal Insurance by 171.5% in the first quarter. Millennium Management LLC now owns 343,786 shares of the insurance provider’s stock valued at $8,148,000 after purchasing an additional 217,184 shares during the period. Goldman Sachs Group Inc. lifted its position in Universal Insurance by 9.4% in the first quarter. Goldman Sachs Group Inc. now owns 805,199 shares of the insurance provider’s stock valued at $19,083,000 after purchasing an additional 69,289 shares during the period. Jane Street Group LLC boosted its holdings in Universal Insurance by 73.1% in the 1st quarter. Jane Street Group LLC now owns 81,829 shares of the insurance provider’s stock valued at $1,939,000 after purchasing an additional 34,556 shares in the last quarter. Finally, Strs Ohio purchased a new stake in Universal Insurance in the 1st quarter valued at approximately $180,000. Hedge funds and other institutional investors own 66.61% of the company’s stock.

Universal Insurance Price Performance

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

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.