Zacks Research Downgrades Universal Insurance (NYSE:UVE) to Hold

Universal Insurance (NYSE:UVE) was downgraded by equities research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Tuesday,Zacks.com reports.

Several other analysts have also recently issued reports on the company. Weiss Ratings reiterated a “buy (b)” rating on shares of Universal Insurance in a research report on Monday, April 20th. Wall Street Zen cut Universal Insurance from a “strong-buy” rating to a “buy” rating in a report on Saturday, May 2nd. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $40.00.

Universal Insurance Stock Performance

UVE opened at $40.75 on Tuesday. The firm has a market cap of $1.14 billion, a P/E ratio of 6.04 and a beta of 0.73. Universal Insurance has a 1-year low of $21.96 and a 1-year high of $41.96. The company has a 50 day simple moving average of $37.96 and a two-hundred day simple moving average of $34.48. The company has a debt-to-equity ratio of 0.17, a current ratio of 0.51 and a quick ratio of 0.51.

Universal Insurance (NYSE:UVE) last posted its quarterly earnings results on Thursday, April 23rd. The insurance provider reported $2.00 EPS for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $481.09 million. Equities analysts forecast that Universal Insurance will post 4.63 earnings per share for the current fiscal year.

Insider Activity

In related news, Chairman Sean P. Downes sold 20,000 shares of the stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $38.22, for a total value of $764,400.00. Following the completion of the transaction, the chairman owned 1,148,255 shares of the company’s stock, valued at approximately $43,886,306.10. This trade represents a 1.71% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In the last 90 days, insiders have sold 60,000 shares of company stock worth $2,332,800. 15.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Universal Insurance

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its holdings in shares of Universal Insurance by 2.8% in the 4th quarter. Vanguard Group Inc. now owns 2,007,725 shares of the insurance provider’s stock worth $67,861,000 after purchasing an additional 54,004 shares during the period. American Century Companies Inc. raised its holdings in Universal Insurance by 11.3% during the 3rd quarter. American Century Companies Inc. now owns 843,059 shares of the insurance provider’s stock valued at $22,172,000 after buying an additional 85,312 shares during the period. Geode Capital Management LLC raised its holdings in Universal Insurance by 19.8% during the 4th quarter. Geode Capital Management LLC now owns 815,484 shares of the insurance provider’s stock valued at $27,566,000 after buying an additional 134,805 shares during the period. Goldman Sachs Group Inc. raised its holdings in Universal Insurance by 9.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 805,199 shares of the insurance provider’s stock valued at $19,083,000 after buying an additional 69,289 shares during the period. Finally, Millennium Management LLC lifted its position in Universal Insurance by 212.3% in the third quarter. Millennium Management LLC now owns 596,370 shares of the insurance provider’s stock worth $15,685,000 after buying an additional 405,403 shares during the last quarter. 66.61% of the stock is currently owned by hedge funds and other institutional investors.

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.