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

Universal Insurance Holdings, Inc. (NYSE:UVE) gapped down prior to trading on Monday . The stock had previously closed at $21.00, but opened at $20.12. Universal Insurance shares last traded at $17.78, with a volume of 455,893 shares changing hands.

Analyst Upgrades and Downgrades

Separately, StockNews.com cut shares of Universal Insurance from a “strong-buy” rating to a “buy” rating in a research report on Monday, August 5th.

Universal Insurance Stock Performance

The company has a quick ratio of 0.54, a current ratio of 0.54 and a debt-to-equity ratio of 0.26. The firm has a 50-day moving average price of $20.65 and a 200 day moving average price of $19.81. The firm has a market capitalization of $483.02 million, a PE ratio of 6.94 and a beta of 0.89.

Universal Insurance (NYSE:UVE) last announced its earnings results on Thursday, July 25th. The insurance provider reported $1.18 EPS for the quarter, beating analysts’ consensus estimates of $1.15 by $0.03. The company had revenue of $380.21 million during the quarter, compared to analysts’ expectations of $340.09 million. Universal Insurance had a return on equity of 21.14% and a net margin of 5.60%. During the same period last year, the business posted $0.87 EPS. Research analysts expect that Universal Insurance Holdings, Inc. will post 2.3 earnings per share for the current year.

Universal Insurance Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 9th. Investors of record on Friday, August 2nd were issued a $0.16 dividend. The ex-dividend date was Friday, August 2nd. This represents a $0.64 dividend on an annualized basis and a yield of 3.77%. Universal Insurance’s dividend payout ratio (DPR) is presently 25.10%.

Insider Buying and Selling

In related news, Chairman Sean P. Downes sold 20,000 shares of the company’s stock in a transaction that occurred on Thursday, September 19th. The shares were sold at an average price of $22.47, for a total transaction of $449,400.00. Following the sale, the chairman now directly owns 1,082,262 shares in the company, valued at approximately $24,318,427.14. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other Universal Insurance news, Chairman Sean P. Downes sold 20,000 shares of the firm’s stock in a transaction on Thursday, September 19th. The stock was sold at an average price of $22.47, for a total value of $449,400.00. Following the sale, the chairman now directly owns 1,082,262 shares in the company, valued at $24,318,427.14. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Jon Springer sold 35,173 shares of Universal Insurance stock in a transaction dated Friday, August 16th. The stock was sold at an average price of $20.53, for a total value of $722,101.69. Following the sale, the director now directly owns 473,899 shares of the company’s stock, valued at $9,729,146.47. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 75,173 shares of company stock valued at $1,571,502 in the last three months. 17.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Universal Insurance

Several hedge funds have recently added to or reduced their stakes in UVE. CWM LLC lifted its holdings in shares of Universal Insurance by 40.1% in the 3rd quarter. CWM LLC now owns 2,524 shares of the insurance provider’s stock valued at $56,000 after purchasing an additional 723 shares during the last quarter. Quarry LP lifted its stake in Universal Insurance by 424.4% in the second quarter. Quarry LP now owns 1,395 shares of the insurance provider’s stock valued at $26,000 after buying an additional 1,129 shares during the last quarter. SG Americas Securities LLC boosted its holdings in shares of Universal Insurance by 17.4% in the second quarter. SG Americas Securities LLC now owns 12,374 shares of the insurance provider’s stock valued at $232,000 after acquiring an additional 1,833 shares during the period. Principal Financial Group Inc. grew its position in shares of Universal Insurance by 11.0% during the second quarter. Principal Financial Group Inc. now owns 24,963 shares of the insurance provider’s stock worth $468,000 after acquiring an additional 2,479 shares during the last quarter. Finally, Marshall Wace LLP increased its holdings in shares of Universal Insurance by 1.8% in the 2nd quarter. Marshall Wace LLP now owns 235,801 shares of the insurance provider’s stock valued at $4,424,000 after acquiring an additional 4,140 shares during the period. 66.61% of the stock is currently owned by hedge funds and other institutional investors.

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.