Universal Insurance (NYSE:UVE) Issues Earnings Results, Beats Estimates By $0.27 EPS

Universal Insurance (NYSE:UVE) posted its quarterly earnings results on Thursday. The insurance provider reported $1.84 earnings per share for the quarter, topping the consensus estimate of $1.57 by $0.27, FiscalAI reports. Universal Insurance had a return on equity of 39.29% and a net margin of 13.49%.The business had revenue of $419.38 million during the quarter, compared to the consensus estimate of $614.62 million.

Universal Insurance Trading Up 10.4%

Shares of UVE opened at $41.59 on Friday. The stock has a market capitalization of $1.16 billion, a PE ratio of 5.49 and a beta of 0.72. The company’s fifty day moving average is $39.21 and its 200 day moving average is $35.61. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.51 and a current ratio of 0.51. Universal Insurance has a fifty-two week low of $21.96 and a fifty-two week high of $43.96.

Universal Insurance Dividend Announcement

The firm also recently declared 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. This represents a $0.64 annualized dividend and a yield of 1.5%. The ex-dividend date is Friday, July 31st. Universal Insurance’s payout ratio is currently 9.48%.

Universal Insurance News Summary

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

UVE has been the topic of several research analyst reports. Zacks Research downgraded shares of Universal Insurance from a “strong-buy” rating to a “hold” rating in a report on Tuesday, June 23rd. Wall Street Zen cut shares of Universal Insurance from a “strong-buy” rating to a “buy” rating in a research note on Saturday, May 2nd. Piper Sandler downgraded shares of Universal Insurance from an “overweight” rating to a “neutral” rating and set a $44.00 price target on the stock. in a report on Wednesday, July 15th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of Universal Insurance in a research note on Friday, July 17th. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Universal Insurance has a consensus rating of “Hold” and an average price target of $44.00.

Insider Buying and Selling

In other Universal Insurance news, Chairman Sean P. Downes sold 20,000 shares of the stock in a transaction 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 completion of the transaction, 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 Securities & Exchange Commission, which is available through this link. Insiders have sold a total of 60,000 shares of company stock worth $2,332,800 in the last three months. 15.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. EP Wealth Advisors LLC purchased a new position in Universal Insurance in the fourth quarter worth about $495,000. Empowered Funds LLC raised its position in Universal Insurance by 6.5% during the fourth quarter. Empowered Funds LLC now owns 133,255 shares of the insurance provider’s stock valued at $4,504,000 after purchasing an additional 8,176 shares during the period. XTX Topco Ltd bought a new stake in shares of Universal Insurance in the 4th quarter valued at approximately $665,000. VARCOV Co. bought a new stake in shares of Universal Insurance in the 4th quarter valued at approximately $421,000. Finally, Tudor Investment Corp ET AL purchased a new position in shares of Universal Insurance in the 4th quarter worth approximately $888,000. Institutional investors own 66.61% of the company’s stock.

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.