Universal Insurance Holdings, Inc.
$35.68
-1.6%Universal Insurance Holdings, Inc., together with its subsidiaries, operates as an integrated insurance holding company in the United States. The company 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. It also advises on actuarial issues, oversees distribution, administers claims payments, performs policy administration and underwriting, and assists with reinsurance negotiations; places and manages reinsurance programs for the insurance entities; and operates Clovered.com, an online platform in which consumers receive side-by-side quotes from various carriers across multiple states, as well as educational materials about homeowners' insurance policies. It offers its products through a network of independent agents, as well as Universal Direct, a direct-to-consumer online platform, which enables homeowners to directly purchase, pay for, and bind homeowners' policies. The company was formerly known as Universal Heights, Inc. and changed its name to Universal Insurance Holdings, Inc. in January 2001. Universal Insurance Holdings, Inc. was incorporated in 1990 and is headquartered in Fort Lauderdale, Florida.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 5.4).
Valuation inputs: P/E 5.4, earnings yield +18.4%, momentum -1.6%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +33.2%, ROIC +26.4%).
Profitability stack: net margin +11.5%, ROE +33.2%, ROIC +26.4%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +80.6%, momentum -1.6%, net margin +11.5%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Universal Insurance Holdings, Inc. Market vs Earnings Trajectory
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Universal Insurance Holdings, Inc. Fair Value Envelope
Universal Insurance Holdings, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
Universal Insurance Holdings, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Universal Insurance Holdings, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.
Universal Insurance Holdings, Inc. Street Expectations Map
Wall Street analysts project that UVE stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 40.00, with estimates ranging from a low of 40.00 to a high of 40.00.
The consensus 1-year price target stands at 40.00, with estimates ranging from a low of 40.00 to a high of 40.00.
Analyst Consensus Analysis
Upside Potential
Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Universal Insurance Holdings, Inc. Insider Positioning
During the last 12 months, insiders have purchased $3.30M and sold $9.06M worth of UVE shares, resulting in $5.76M of net selling activity.
3 Months
0
0.00
62.8K
2.34M
-2.3M
-$2.34M
3-6 Months
0
0.00
73.6K
2.50M
-2.5M
-$2.50M
6-9 Months
0
0.00
99.7K
3.25M
-3.2M
-$3.25M
9-12 Months
250.0K
3.30M
40.0K
970.76K
+2.3M
+$2.33M
Top Buyers
Downes Sean P
Director, Officer: Executive Chairman
$3.30M
Top Sellers
Downes Sean P
Director, Officer: Executive Chairman
$4.86M
Springer Jon
Director
$1.95M
Donaghy Stephen
Director, Officer: Ceo
$1.70M
Pietrangelo Michael
Director
$295K
Peterson Richard D
Director
$131K
Insider Activity Analysis
Net Insider Sentiment
Negative insider sentiment with $5.76M net selling. Selling notably exceeds buying, warranting closer scrutiny of company fundamentals.
Buy/Sell Ratio
Weak buy/sell ratio. Selling significantly exceeds buying—monitor for potential fundamental concerns.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
uve Dividend History
Learning Layer
Related Guides
Build conviction on UVE by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.