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

Universal Insurance Holdings, Inc. (NYSE:UVE) shot up 9.6% during trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $22.49 and last traded at $22.49. 253,082 shares were traded during mid-day trading, an increase of 95% from the average session 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 analysts’ consensus estimates of $0.09 by $0.16. The business had revenue of $384.81 million during the quarter, compared to the consensus estimate 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 company also recently declared a quarterly dividend, which will be paid on Friday, March 14th. Stockholders of record on Friday, March 7th will be issued a dividend of $0.16 per share. The ex-dividend date of this dividend is Friday, March 7th. This represents a $0.64 dividend on an annualized basis and a dividend yield of 2.86%. This is an increase from Universal Insurance’s previous quarterly dividend of $0.13. Universal Insurance’s dividend payout ratio (DPR) is currently 26.02%.

Wall Street Analysts Forecast Growth

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

Insider Activity at Universal Insurance

In related news, Chairman Sean P. Downes sold 50,000 shares of Universal Insurance stock in a transaction that occurred 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 completion of the sale, the chairman now owns 985,320 shares in the company, valued at approximately $20,208,913.20. This trade represents a 4.83 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Jon Springer sold 25,000 shares of Universal Insurance stock in a transaction that occurred 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 sale, the director now owns 383,228 shares of the company’s stock, valued at $7,905,993.64. This trade represents a 6.12 % decrease in their position. The disclosure for this sale can be found here. 17.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Universal Insurance

Several hedge funds and other institutional investors have recently added to or reduced their stakes in UVE. Summit Global Investments purchased a new position in Universal Insurance in the 3rd quarter valued at approximately $588,000. CWA Asset Management Group LLC purchased a new position in Universal Insurance in the 3rd quarter valued at approximately $6,322,000. Covestor Ltd boosted its position in Universal Insurance by 240.1% in the 3rd quarter. Covestor Ltd now owns 1,881 shares of the insurance provider’s stock valued at $42,000 after buying an additional 1,328 shares during the period. Versor Investments LP purchased a new position in Universal Insurance in the 3rd quarter valued at approximately $292,000. Finally, GSA Capital Partners LLP boosted its position in Universal Insurance by 108.6% in the 3rd quarter. GSA Capital Partners LLP now owns 93,851 shares of the insurance provider’s stock valued at $2,080,000 after buying an additional 48,864 shares during the period. 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 0.25, a quick ratio of 0.51 and a current ratio of 0.51. The company has a market cap of $633.89 million, a PE ratio of 9.11 and a beta of 0.91. The company’s 50-day simple moving average is $20.05 and its 200 day simple moving average is $20.69.

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.