Universal Insurance (NYSE:UVE) Shares Gap Down – Should You Sell?

Universal Insurance Holdings Inc (NYSE:UVE)’s share price gapped down before the market opened on Wednesday . The stock had previously closed at $41.45, but opened at $39.84. Universal Insurance shares last traded at $37.3060, with a volume of 61,596 shares changing hands.

Wall Street Analysts Forecast Growth

UVE has been the subject of several research analyst reports. Wall Street Zen downgraded shares of Universal Insurance from a “strong-buy” rating to a “buy” rating in a report on Saturday, May 2nd. Zacks Research lowered Universal Insurance from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 23rd. Weiss Ratings reiterated a “buy (b)” rating on shares of Universal Insurance in a research report on Monday, April 20th. Finally, Piper Sandler lowered Universal Insurance from an “overweight” rating to a “neutral” rating and set a $44.00 price target on the stock. in a research note on Wednesday. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Universal Insurance presently has a consensus rating of “Hold” and an average target price of $44.00.

Universal Insurance Trading Up 2.0%

The company has a market cap of $1.07 billion, a P/E ratio of 5.66 and a beta of 0.72. The firm’s 50 day moving average is $39.24 and its two-hundred day moving average is $35.40. The company has a quick ratio of 0.51, a current ratio of 0.51 and a debt-to-equity ratio of 0.17.

Universal Insurance (NYSE:UVE) last announced its earnings results on Thursday, April 23rd. The insurance provider reported $2.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.39 by $0.61. Universal Insurance had a return on equity of 37.51% and a net margin of 12.22%.The business had revenue of $398.16 million during the quarter, compared to analyst estimates of $481.09 million. As a group, equities research analysts anticipate that Universal Insurance Holdings Inc will post 4.63 EPS for the current year.

Universal Insurance Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Friday, July 31st will be given a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Friday, July 31st. Universal Insurance’s dividend payout ratio (DPR) is 9.48%.

Insider Activity at Universal Insurance

In related news, Chairman Sean P. Downes sold 20,000 shares of the company’s stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $38.22, for a total value of $764,400.00. Following the sale, the chairman directly owned 1,148,255 shares in the company, valued at $43,886,306.10. This represents a 1.71% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders sold 60,000 shares of company stock valued at $2,332,800 over the last quarter. 15.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Torren Management LLC bought a new position in Universal Insurance during the fourth quarter worth $54,000. Tower Research Capital LLC TRC grew its holdings in Universal Insurance by 390.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,656 shares of the insurance provider’s stock worth $74,000 after acquiring an additional 2,114 shares during the period. Parallel Advisors LLC grew its holdings in Universal Insurance by 4,847.3% during the 1st quarter. Parallel Advisors LLC now owns 2,721 shares of the insurance provider’s stock worth $93,000 after acquiring an additional 2,666 shares during the period. Archer Investment Corp bought a new position in shares of Universal Insurance in the 1st quarter worth about $95,000. Finally, IFP Advisors Inc raised its position in shares of Universal Insurance by 492.4% in the 4th quarter. IFP Advisors Inc now owns 2,796 shares of the insurance provider’s stock worth $95,000 after acquiring an additional 2,324 shares in the last quarter. Institutional investors and hedge funds own 66.61% of the company’s stock.

About Universal Insurance

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.