Universal Insurance Director sells $449,000 worth of Investing.com’s stock

In a recent transaction, Sean P. Downes, Executive Chairman of Universal Insurance Holdings, Inc. (NYSE: ), sold 20,000 shares of the company’s common stock. The sale was made at a weighted average price of $22.4714 per share, resulting in a total transaction value of approximately $449,428.

The shares were sold on September 19, 2024, with prices ranging from $22.295 to $22.75, as disclosed in a regulatory filing. Following the sale, Downes still holds a significant stake in the company, 1,082,262 shares of Universal Insurance Holdings, Inc. remaining in its direct ownership. In addition, there are holdings indirectly associated with Downes, including 18,000 shares owned by his children and 2,000 shares owned by his wife.

Universal Insurance Holdings, Inc. is a Delaware incorporated company specializing in fire, marine and casualty insurance. The company has a strong presence in the insurance industry and is known for its diversified product offerings.

Investors often monitor the buying and selling activities of top executives because they can provide insights into the company’s future performance. However, such transactions may be motivated by various factors and do not necessarily indicate a change in the company’s outlook.

Detailed information regarding the number of shares sold at each separate price in the range has been offered to be provided by Downes upon request to Universal Insurance Holdings, Inc., its security holders or SEC staff.

In other recent news, Universal Insurance Holdings reported a robust second quarter in 2024, marked by significant growth in adjusted return on equity and adjusted diluted earnings per share. This performance was driven by strong underwriting and favorable claims and litigation trends, which led to an increase in policies in force for the first time since 2021. In addition, the company successfully renewed its 2024 reinsurance program -2025 at only a modest increase in costs.

Universal’s core revenue rose 12.5% ​​year-over-year to $379.2 million, and direct written premiums rose 5.7%. The company also posted a 13.7% increase in net premiums earned, largely due to higher direct premiums earned and a lower rate of premiums ceded. Universal also repurchased about 274,000 shares and declared a quarterly cash dividend of $0.16 per share.

The company is bullish on the impact of December 2022 tort reform legislation and is looking at rates for 2024 with the expectation of a reduction due to tort reform. Universal’s focus remains on rate adequacy and strong agency relationships. These are the recent developments regarding Universal Insurance Holdings.

InvestingPro Insights

As Universal Insurance Holdings, Inc. (NYSE:UVE) navigates the insurance industry landscape, recent data from InvestingPro provides a snapshot of the company’s financial health and market performance. With a market cap of $628.92 million and a compelling price-to-earnings (P/E) ratio of 7.73, the company shows signs of being potentially undervalued compared to industry peers. This is also supported by an adjusted P/E ratio for the trailing twelve months through Q2 2024, which stands at a similar level of 7.69.

InvestingPro Tips highlights that Universal Insurance Holdings, Inc. has maintained dividend payments for 19 consecutive years, which may interest income-focused investors. In addition, analysts predict that the company will be profitable this year, strengthening the company’s financial stability. These factors are particularly relevant in the context of executive transactions because they can influence investors’ perception of long-term value and commitment to shareholder returns.

Additionally, the company’s recent performance metrics are notable with a one-year total price return of 76.52%, suggesting strong investor confidence. This is in line with InvestingPro Advice indicating a strong return over the past year and a robust return over the past three months, which has seen growth of 17.57%.

For those interested in a deeper dive into Universal Insurance Holdings, Inc.’s financial and market performance, InvestingPro offers additional advice and metrics. As of the latest update, there are 6 more InvestingPro Tips available for UVE that can be explored for a comprehensive analysis of the company’s investment potential.

It is also worth noting that the company’s fair value is valued at $25 by analysts and $25.13 by InvestingPro, suggesting potential upside from its previous close of $22.46. As investors consider the implications of executive stock sales, these metrics provide a broader context for understanding the company’s current market position and future prospects.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.