Universal Insurance (NYSE:UVE) Hits New 1-Year High – Still a Buy?

Universal Insurance Holdings Inc (NYSE:UVE)’s stock price reached a new 52-week high during mid-day trading on Wednesday. The stock traded as high as $45.34 and last traded at $45.1740, with a volume of 122897 shares. The stock had previously closed at $43.51.

Wall Street Analysts Forecast Growth

Several brokerages have commented on UVE. Zacks Research lowered shares of Universal Insurance from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 23rd. Weiss Ratings raised shares of Universal Insurance from a “buy (b+)” rating to a “buy (a-)” rating in a report on Friday, September 18th. Wall Street Zen upgraded shares of Universal Insurance from a “buy” rating to a “strong-buy” rating in a research report on Saturday. Finally, Piper Sandler increased their target price on shares of Universal Insurance from $44.00 to $45.00 and gave the company a “neutral” rating in a report on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, Universal Insurance currently has a consensus rating of “Moderate Buy” and a consensus price target of $45.00.

Universal Insurance Stock Up 3.8%

The firm has a market capitalization of $1.26 billion, a PE ratio of 5.96 and a beta of 0.69. The firm’s 50-day moving average is $43.48 and its 200 day moving average is $39.90. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.57 and a current ratio of 0.57.

Universal Insurance (NYSE:UVE) last announced its earnings results on Thursday, July 23rd. The insurance provider reported $1.84 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.57 by $0.27. Universal Insurance had a net margin of 13.49% and a return on equity of 37.67%. The company had revenue of $419.38 million during the quarter, compared to analysts’ expectations of $614.62 million. As a group, research analysts forecast that Universal Insurance Holdings Inc will post 4.85 earnings per share for the current fiscal year.

Insider Activity

In related news, Chairman Sean Downes sold 20,000 shares of the company’s stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $43.98, for a total value of $879,600.00. Following the sale, the chairman owned 1,084,645 shares of the company’s stock, valued at approximately $47,702,687.10. This represents a 1.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 15.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Universal Insurance

Institutional investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in Universal Insurance in the 2nd quarter valued at about $111,007,000. Donald Smith & CO. Inc. purchased a new stake in shares of Universal Insurance during the second quarter worth about $29,849,000. Renaissancere Holdings Ltd. purchased a new stake in shares of Universal Insurance during the second quarter worth about $24,144,769. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Universal Insurance in the second quarter valued at approximately $10,530,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Universal Insurance in the second quarter valued at approximately $8,104,000. 66.61% of the stock is owned by institutional investors and hedge funds.

Universal Insurance Company Profile

Universal Insurance Holdings, Inc (NYSE: UVE) is an insurance holding company focused primarily on personal residential property and casualty insurance. Through its operating subsidiaries, the company provides coverage designed to protect homeowners and other residential property owners against risks such as wind, fire, theft and other covered losses.

Universal’s products have historically included homeowners, condominium, renters and dwelling-fire insurance, along with related personal lines offerings.