Insider Trading Report: Universal Insurance Holdings (UVE)

Stephen Donaghy, CEO at Universal Insurance Holdings (UVE), recently added 10,000 shares to his holdings. The buy increased his stake by 0.04 percent, and came to a total cost of $311,000.

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  • This marks the first insider buy at the company since November 2020. A few insider sales occurred in the last year, and going back to 2019 and 2020, company insiders were exclusively buyers of shares, even at far higher prices than today.

    Overall, insiders own just under 10 percent of the company.

    Shares of the property and casualty insurer have lost 23 percent of their value in the past year. The company recently reported an underwriting loss in the most recent quarter, even as revenues beat expectations.

    The stock now trades at about 7 times earnings.

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  • Action to take: As a property and casualty insurer in the Southeast, the company is particularly susceptible to hurricane claims. This time of year is out of hurricane season, so shares may see a reprieve in the next few months. Investors can also grab a 5.5 percent dividend yield while shares rebound.

    For traders, the August $15 calls, last going for about $0.30, are an inexpensive option trade that could potentially see triple-digit returns. Traders would likely want to close out the position in the next few months however, as hurricane season could lead to wild swings in shares.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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