Universal Insurance Holdings: CEO Stock Sale and Financial Insights
Universal Insurance Holdings Inc., a prominent entity in the property and casualty insurance sector headquartered in Jacksonville, Florida, recently reported a transaction involving its CEO, Stephen Donaghy. On December 29, 2023, Donaghy divested 25,000 shares of Universal stock, netting $851,750 at an average price of $34.07 per share. Following this transaction, Donaghy retains 679,961 shares, valued at approximately $23.17 million, marking a 3.55% reduction in his holdings. The details of the sale were documented in a filing with the Securities & Exchange Commission and are accessible through the SEC's website.
Universal Insurance's shares saw a minor increase, up by $0.08 to close at $33.81, with trading volume at 291,484 compared to an average of 202,651 shares. The insurance carrier's stock exhibited a 52-week price range from $18.72 to $35.84. Key financial metrics reveal both a current ratio and quick ratio of 0.55, and a debt-to-equity ratio of 0.20. The company's market capitalization stands at approximately $948.37 million, supported by a price-to-earnings ratio of 7.97 and a beta of 0.74.
In the latest fiscal report dated October 23, 2023, Universal Insurance surpassed expectations by posting earnings per share (EPS) of $1.36, against the anticipated $1.10. Revenue for the quarter hit $400.03 million, exceeding projections of $366.36 million. The net margin was registered at 7.74%, with a return on equity hitting 28.25%. Analysts have forecasted an EPS of 1.66 for the current fiscal year, indicating robust financial health despite challenging industry conditions.
The company recently declared a special dividend of $0.13 per share disbursed on December 12, 2023, to shareholders recorded by December 5, 2023, reflecting a dividend payout ratio of 15.09%. This decision underscores the company's commitment to delivering shareholder value while navigating complex regulatory compliance requirements in the insurance industry.
Notably, there have been significant shifts in institutional holdings, with entities like the State of Alaska Department of Revenue and Quarry LP acquiring stakes. Other institutional investors, such as Ameritas Investment Partners Inc. and Tower Research Capital LLC TRC, have increased their positions. Currently, institutional investors and hedge funds own approximately 66.61% of the company's stock, highlighting its attractiveness within the finance and risk management sectors.
Analyst Ratings and Market Sentiment
Market analysts have expressed diverse perspectives on Universal Insurance’s future performance. Piper Sandler raised its price target from $35.00 to $40.00, granting an "overweight" rating, while Weiss Ratings sustained a "buy (b)" rating. Wall Street Zen upgraded its evaluation to a "strong-buy," whereas Zacks Research modified its rating from "strong-buy" to "hold." With two analysts issuing buy ratings, the average analyst rating stands at "Moderate Buy," with a consensus price target of $40.00, according to MarketBeat data.
Comprehensive Insurance Solutions
Universal Insurance Holdings specializes in underwriting a wide range of residential property insurance products against natural disasters. Operating through a network of independent agents, the company provides coverage for primary residences, secondary homes, and various other property types. Additionally, Universal extends its services to commercial property and casualty insurance, catering to the needs of businesses and institutional clients, ensuring comprehensive risk management and regulatory compliance.