Universal Insurance (NYSE:UVE) Trading Up 9.6% on Better-Than-Expected Earnings

Universal Insurance Holdings, Inc. (NYSE:UVE - Get Free Report) traded up 9.6% on Wednesday following a stronger than expected earnings report. The stock 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 for the quarter, topping the consensus estimate of $0.09 by $0.16. Universal Insurance had a return on equity of 15.43% and a net margin of 4.82%. The firm had revenue of $384.81 million for the quarter, compared to the consensus estimate of $349.91 million.

Universal Insurance Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 14th. Stockholders of record on Friday, March 7th will be issued a $0.16 dividend. The ex-dividend date of this dividend is Friday, March 7th. This is a positive change from Universal Insurance's previous quarterly dividend of $0.13. This represents a $0.64 dividend on an annualized basis and a dividend yield of 2.89%. Universal Insurance's dividend payout ratio is currently 32.16%.

Wall Street Analyst Weigh In

Separately, StockNews.com raised shares of Universal Insurance from a "buy" rating to a "strong-buy" rating in a research report on Monday, February 24th.

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Insider Buying and Selling at Universal Insurance

In related news, Director Jon Springer sold 25,000 shares of the stock in a transaction 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 sale, the director now directly owns 383,228 shares of the company's stock, valued at approximately $7,905,993.64. This represents a 6.12 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Chairman Sean P. Downes sold 50,000 shares of Universal Insurance stock in a transaction on Monday, December 30th. The shares were 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 of the company's stock, 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. Over the last three months, insiders have sold 115,000 shares of company stock valued at $2,424,450. 17.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Universal Insurance

Hedge funds have recently modified their holdings of the company. Covestor Ltd raised its holdings in Universal Insurance by 240.1% in the 3rd quarter. Covestor Ltd now owns 1,881 shares of the insurance provider's stock worth $42,000 after purchasing an additional 1,328 shares during the period. Quarry LP raised its position in Universal Insurance by 55.6% during the third quarter. Quarry LP now owns 2,171 shares of the insurance provider's stock worth $48,000 after acquiring an additional 776 shares during the period. KLP Kapitalforvaltning AS purchased a new position in Universal Insurance during the fourth quarter valued at $103,000. Quantbot Technologies LP grew its position in shares of Universal Insurance by 45,981.8% in the fourth quarter. Quantbot Technologies LP now owns 5,069 shares of the insurance provider's stock valued at $107,000 after purchasing an additional 5,058 shares during the period. Finally, Sunbelt Securities Inc. purchased a new stake in shares of Universal Insurance during the fourth quarter worth about $118,000. 66.61% of the stock is owned by hedge funds and other institutional investors.

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 stock has a market capitalization of $626.39 million, a PE ratio of 9.00 and a beta of 0.91. The stock's 50 day moving average is $20.11 and its two-hundred day moving average is $20.74.

Universal Insurance Company Profile

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.