Sean P. Downes, Executive Chairman of Universal Insurance Holdings, Inc. (NYSE:UVE), recently sold 20,000 shares of company stock at an average price of $20.0046 per share, totaling approximately $400,092. This sale was conducted in multiple transactions with prices ranging between $19.69 and $20.25. Despite this sale, Downes still holds 1,122,262 shares directly, with additional indirect ownership through family members.
Investors often view insider transactions as a signal of confidence in a company's prospects. Universal Insurance Holdings, based in Fort Lauderdale, Florida, operates in the insurance sector and recently reported strong second-quarter results. The company saw a 30.5% annualized adjusted return on common equity and a 35.6% year-over-year growth in adjusted diluted earnings per share. Additionally, Universal successfully renewed its reinsurance program, repurchased shares, and declared a cash dividend.
InvestingPro Insights show that Universal Insurance Holdings has a market capitalization of $548.59 million and a low P/E ratio of 6.75. The company also offers an attractive dividend yield of 3.99% and has shown revenue growth over the last twelve months. While the company's valuation suggests strong free cash flow yield and profitability, investors should be aware of its short-term obligations exceeding liquid assets.
For a more in-depth analysis of Universal Insurance Holdings' financial health and future prospects, InvestingPro offers 7 additional tips. Overall, the company's recent developments and financial metrics present a mixed picture for investors to consider.
In conclusion, the recent insider sale by Sean P. Downes, combined with the company's positive second-quarter results and financial metrics, provide valuable insights for investors looking to assess Universal Insurance Holdings' current position in the market and potential investment opportunities.