Universal Insurance Holdings Stock Buy Hold or Sell Recommendation
| UVE Stock | USD 19.61 0.10 0.51% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Universal Insurance Holdings is 'Hold'. Macroaxis provides Universal Insurance buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding UVE positions. The advice algorithm takes into account all of Universal Insurance's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Universal Insurance's buy or sell advice are summarized below:
Real Value 20.32 | Target Price 21 | Hype Value 19.6 | Market Value 19.61 | Naive Value 19.09 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Universal Insurance Holdings given historical horizon and risk tolerance towards Universal Insurance. When Macroaxis issues a 'buy' or 'sell' recommendation for Universal Insurance Holdings, the advice is generated through an automated system that utilizes algorithms and statistical models.
Universal |
Execute Universal Insurance Buy or Sell Advice
The Universal recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Universal Insurance Holdings. Macroaxis does not own or have any residual interests in Universal Insurance Holdings or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Universal Insurance's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Universal Insurance Trading Alerts and Improvement Suggestions
| Universal Insurance Holdings has 116.6 M in debt with debt to equity (D/E) ratio of 0.4, which is OK given its current industry classification. Universal Insurance has a current ratio of 0.65, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Universal to invest in growth at high rates of return. | |
| About 65.0% of Universal Insurance outstanding shares are owned by institutional investors | |
| On 17th of May 2024 Universal Insurance paid $ 0.16 per share dividend to its current shareholders | |
| Latest headline from businesswire.com: Universals Insurance Subsidiaries Complete 2024-2025 Reinsurance Program |
Universal Insurance Returns Distribution Density
The distribution of Universal Insurance's historical returns is an attempt to chart the uncertainty of Universal Insurance's future price movements. The chart of the probability distribution of Universal Insurance daily returns describes the distribution of returns around its average expected value. We use Universal Insurance Holdings price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Universal Insurance returns is essential to provide solid investment advice for Universal Insurance.
| Mean Return | -0.0052 | Value At Risk | -2.35 | Potential Upside | 2.68 | Standard Deviation | 1.74 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Universal Insurance historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Universal Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Universal Insurance is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Universal Insurance Holdings backward and forwards among themselves. Universal Insurance's institutional investor refers to the entity that pools money to purchase Universal Insurance's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Arrowmark Colorado Holdings, Llc (arrowmark Partners) | 2023-12-31 | 415 K | Charles Schwab Investment Management Inc | 2023-12-31 | 377.9 K | Two Sigma Investments Llc | 2023-12-31 | 353.1 K | Acadian Asset Management Llc | 2023-12-31 | 316.7 K | Lsv Asset Management | 2024-03-31 | 313.9 K | Bank Of New York Mellon Corp | 2023-12-31 | 295.3 K | Two Sigma Advisers, Llc | 2023-12-31 | 292.5 K | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 265.8 K | Bridgeway Capital Management, Llc | 2023-12-31 | 261.8 K | Blackrock Inc | 2023-12-31 | 2.1 M | Donald Smith & Co Inc | 2023-12-31 | 1.7 M |
Universal Insurance Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 15.7M | (4.9M) | 73.3M | 138.2M | 8.6M | 13.6M | |
| Free Cash Flow | 73.3M | 12.1M | 227.2M | 319.6M | 67.0M | 75.6M | |
| Other Non Cash Items | (20.9M) | (89.4M) | (23.1M) | (3.8M) | 11.8M | 12.4M | |
| Capital Expenditures | 11.3M | 17.2M | 7.2M | 4.9M | 4.0M | 3.4M | |
| Net Income | 46.5M | 19.1M | 20.4M | (22.3M) | 66.8M | 70.2M | |
| End Period Cash Flow | 184.7M | 179.9M | 253.1M | 391.3M | 399.9M | 419.9M | |
| Depreciation | 5.0M | 5.1M | 6.9M | 7.3M | 7.3M | 7.7M | |
| Dividends Paid | 26.1M | 24.6M | 24.2M | 23.8M | (23.3M) | (22.1M) | |
| Change To Netincome | 15.4M | 12.4M | (21.6M) | (11.9M) | (13.7M) | (14.4M) | |
| Change Receivables | (251.1M) | 188.1M | (9.7M) | (50.2M) | (45.2M) | (42.9M) | |
| Investments | 736K | 73.8M | (234.2M) | (148.9M) | (23.3M) | (24.5M) |
Universal Insurance Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Universal Insurance or Insurance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Universal Insurance's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Universal stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.04 | |
β | Beta against NYSE Composite | 0.86 | |
σ | Overall volatility | 1.76 | |
Ir | Information ratio | -0.02 |
Universal Insurance Volatility Alert
Universal Insurance Holdings exhibits very low volatility with skewness of 0.74 and kurtosis of 2.6. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Universal Insurance's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Universal Insurance's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Universal Insurance Fundamentals Vs Peers
Comparing Universal Insurance's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Universal Insurance's direct or indirect competition across all of the common fundamentals between Universal Insurance and the related equities. This way, we can detect undervalued stocks with similar characteristics as Universal Insurance or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Universal Insurance's fundamental indicators could also be used in its relative valuation, which is a method of valuing Universal Insurance by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Universal Insurance to competition |
| Fundamentals | Universal Insurance | Peer Average |
| Return On Equity | 0.22 | -0.31 |
| Return On Asset | 0.0293 | -0.14 |
| Profit Margin | 0.05 % | (1.27) % |
| Operating Margin | 0.13 % | (5.51) % |
| Current Valuation | 272.33 M | 16.62 B |
| Shares Outstanding | 28.76 M | 571.82 M |
| Shares Owned By Insiders | 10.10 % | 10.09 % |
| Shares Owned By Institutions | 65.48 % | 39.21 % |
| Number Of Shares Shorted | 292.34 K | 4.71 M |
| Price To Earning | 13.42 X | 28.72 X |
| Price To Book | 1.60 X | 9.51 X |
| Price To Sales | 0.39 X | 11.42 X |
| Revenue | 1.39 B | 9.43 B |
| Gross Profit | 284.26 M | 27.38 B |
| EBITDA | 7.31 M | 3.9 B |
| Net Income | 66.82 M | 570.98 M |
| Cash And Equivalents | 388.71 M | 2.7 B |
| Cash Per Share | 10.08 X | 5.01 X |
| Total Debt | 116.6 M | 5.32 B |
| Debt To Equity | 0.40 % | 48.70 % |
| Current Ratio | 0.66 X | 2.16 X |
| Book Value Per Share | 12.68 X | 1.93 K |
| Cash Flow From Operations | 70.97 M | 971.22 M |
| Short Ratio | 1.59 X | 4.00 X |
| Earnings Per Share | 2.57 X | 3.12 X |
| Target Price | 25.0 | |
| Number Of Employees | 1.24 K | 18.84 K |
| Beta | 0.85 | -0.15 |
| Market Capitalization | 563.97 M | 19.03 B |
| Total Asset | 1.89 B | 29.47 B |
| Retained Earnings | 560.69 M | 9.33 B |
| Annual Yield | 0.03 % | |
| Five Year Return | 3.27 % |
Note: Disposition of 12351 shares by Michael Pietrangelo of Universal Insurance at 20.4262 subject to Rule 16b-3 [view details]
Universal Insurance Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Universal . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 3394.98 | |||
| Daily Balance Of Power | (0.18) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 19.57 | |||
| Day Typical Price | 19.58 | |||
| Price Action Indicator | (0.01) | |||
| Period Momentum Indicator | (0.10) |
About Universal Insurance Buy or Sell Advice
When is the right time to buy or sell Universal Insurance Holdings? Buying financial instruments such as Universal Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Cash | 250.5M | 388.7M | 399.9M | 419.9M | Accounts Payable | 188.7M | 384.5M | 212.8M | 223.5M |
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Additional Information and Resources on Investing in Universal Stock
When determining whether Universal Insurance is a strong investment it is important to analyze Universal Insurance's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Universal Insurance's future performance. For an informed investment choice regarding Universal Stock, refer to the following important reports:Check out Universal Insurance Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Universal Insurance. If investors know Universal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Universal Insurance listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.443 | Dividend Share 0.64 | Earnings Share 2.57 | Revenue Per Share 48.998 | Quarterly Revenue Growth 0.163 |
The market value of Universal Insurance is measured differently than its book value, which is the value of Universal that is recorded on the company's balance sheet. Investors also form their own opinion of Universal Insurance's value that differs from its market value or its book value, called intrinsic value, which is Universal Insurance's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Universal Insurance's market value can be influenced by many factors that don't directly affect Universal Insurance's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Universal Insurance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Universal Insurance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Universal Insurance's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.