Universal Insurance (NYSE:UVE) Stock Price Up 9.6% After Better-Than-Expected Earnings

Universal Insurance Holdings, Inc. (NYSE:UVE) shares shot up 9.6% during mid-day 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 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 EPS for the quarter, topping analysts’ consensus estimates of $0.09 by $0.16. Universal Insurance had a return on equity of 15.43% and a net margin of 4.82%. The business had revenue of $384.81 million during the quarter, compared to analysts’ expectations of $349.91 million.

Universal Insurance Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 14th. Stockholders of record on Friday, March 7th will be paid a dividend of $0.16 per share. This is an increase from Universal Insurance’s previous quarterly dividend of $0.13. This represents a $0.64 annualized dividend and a dividend yield of 2.86%. The ex-dividend date is Friday, March 7th. Universal Insurance’s payout ratio is currently 26.02%.

Wall Street Analyst Weigh In

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

Insider Buying and Selling

In other news, Director Jon Springer sold 25,000 shares of the firm’s stock in a transaction on Thursday, December 19th. The stock was sold at an average price of $20.63, for a total value of $515,750.00. Following the completion of the transaction, the director now directly owns 383,228 shares of the company’s stock, valued at $7,905,993.64. This trade represents a 6.12 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Chairman Sean P. Downes sold 50,000 shares of the stock in a transaction on Monday, December 30th. The stock was sold at an average price of $20.51, for a total transaction of $1,025,500.00. Following the completion of the transaction, the chairman now directly owns 985,320 shares in the company, valued at $20,208,913.20. The trade was a 4.83 % decrease in their position. The disclosure for this sale can be found here. 17.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Universal Insurance

Institutional investors and hedge funds have recently modified their holdings of the business. Geode Capital Management LLC boosted its position in Universal Insurance by 7.7% in the third quarter. Geode Capital Management LLC now owns 689,767 shares of the insurance provider’s stock worth $15,289,000 after purchasing an additional 49,123 shares during the last quarter. CWA Asset Management Group LLC lifted its holdings in shares of Universal Insurance by 100.0% in the 4th quarter. CWA Asset Management Group LLC now owns 570,615 shares of the insurance provider’s stock valued at $12,017,000 after acquiring an additional 285,338 shares during the last quarter. Barclays PLC boosted its holdings in shares of Universal Insurance by 69.5% in the 3rd quarter. Barclays PLC now owns 68,969 shares of the insurance provider’s stock worth $1,528,000 after purchasing an additional 28,278 shares during the period. HighTower Advisors LLC bought a new position in Universal Insurance during the third quarter valued at $636,000. Finally, Jane Street Group LLC lifted its position in shares of Universal Insurance by 2,142.1% during the third quarter. Jane Street Group LLC now owns 59,774 shares of the insurance provider’s stock worth $1,325,000 after purchasing an additional 57,108 shares during the last quarter. Institutional investors own 66.61% of the company’s stock.

Universal Insurance Stock Up 9.0 %

The company has a current ratio of 0.51, a quick ratio of 0.51 and a debt-to-equity ratio of 0.25. The firm has a market cap of $632.19 million, a P/E ratio of 9.09 and a beta of 0.91. The business has a 50-day moving average price of $20.01 and a 200-day moving average price of $20.68.

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.