Universal Insurance (NYSE:UVE) Downgraded by StockNews.com to Buy

StockNews.com lowered shares of Universal Insurance (NYSE:UVE) from a strong-buy rating to a buy rating in a report released on Wednesday.

Universal Insurance Price Performance

Shares of NYSE:UVE opened at $22.68 on Wednesday. The company has a current ratio of 0.51, a quick ratio of 0.51 and a debt-to-equity ratio of 0.25. Universal Insurance has a 12 month low of $16.50 and a 12 month high of $23.39. The stock has a market cap of $637.08 million, a P/E ratio of 9.22 and a beta of 0.84. The company has a 50 day moving average of $20.62 and a 200 day moving average of $20.83.

Universal Insurance (NYSE:UVE) last announced its quarterly earnings data on Tuesday, February 25th. The insurance provider reported $0.25 EPS for the quarter, beating the consensus estimate of $0.09 by $0.16. The firm had revenue of $384.81 million for the quarter, compared to analyst estimates of $349.91 million. Universal Insurance had a return on equity of 15.43% and a net margin of 4.82%. As a group, sell-side analysts forecast that Universal Insurance will post 1.66 EPS for the current fiscal year.

Universal Insurance Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 14th. Stockholders of record on Friday, March 7th were issued a dividend of $0.16 per share. 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 2.82%. The ex-dividend date of this dividend was Friday, March 7th. Universal Insurance’s dividend payout ratio is currently 32.16%.

Insider Activity

In related news, Chairman Sean P. Downes sold 20,000 shares of the stock in a transaction dated Friday, February 28th. The shares were sold at an average price of $22.08, for a total value of $441,600.00. Following the completion of the transaction, the chairman now directly owns 990,200 shares in the company, valued at $21,863,616. This trade represents a 1.98 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Over the last three months, insiders have sold 90,000 shares of company stock valued at $1,908,700. Company insiders own 17.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Wells Fargo & Company MN lifted its position in Universal Insurance by 5.6% during the fourth quarter. Wells Fargo & Company MN now owns 13,804 shares of the insurance provider’s stock valued at $291,000 after purchasing an additional 732 shares during the period. Quarry LP lifted its holdings in shares of Universal Insurance by 55.6% in the third quarter. Quarry LP now owns 2,171 shares of the insurance provider’s stock worth $48,000 after buying an additional 776 shares in the last quarter. EP Wealth Advisors LLC grew its position in shares of Universal Insurance by 12.0% during the fourth quarter. EP Wealth Advisors LLC now owns 12,189 shares of the insurance provider’s stock valued at $257,000 after purchasing an additional 1,306 shares in the last quarter. Franklin Resources Inc. raised its stake in Universal Insurance by 8.9% during the fourth quarter. Franklin Resources Inc. now owns 21,799 shares of the insurance provider’s stock valued at $459,000 after purchasing an additional 1,775 shares in the last quarter. Finally, Lazard Asset Management LLC lifted its stake in shares of Universal Insurance by 56.7% in the 4th quarter. Lazard Asset Management LLC now owns 5,758 shares of the insurance provider’s stock valued at $121,000 after purchasing an additional 2,083 shares during the last quarter. Institutional investors own 66.61% of the company’s stock.

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.