FORT LAUDERDALE, Fla. - Universal Insurance Holdings, Inc. (NYSE: NYSE:UVE), a provider of property and casualty insurance, has announced a new share repurchase program. The board of directors has authorized the repurchase of up to $20 million of its outstanding common stock. The program is set to take place over a three-year period, concluding on March 11, 2026.
The repurchases will be conducted on the open market at prevailing prices, subject to market conditions and other factors. Universal Insurance intends to carry out the buyback in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, which sets forth the manner, timing, price, and volume of stock buybacks. The company's insider trading policy will also guide the repurchase transactions.
Universal Insurance operates predominantly in the personal residential homeowners lines of business and provides value-added insurance services. The company manages all aspects of insurance-related services for its primary insurance entities, including risk management, claims management, and distribution. It markets its products through independent agents and direct online channels, with a significant presence in Florida.
This share repurchase announcement is based on a press release statement from Universal Insurance Holdings, Inc.
InvestingPro Insights
Universal Insurance Holdings (NYSE: UVE) has recently made headlines with its $20 million share repurchase program, signaling confidence in the company's financial health and stock value. A deeper dive into the company's financials through InvestingPro reveals a robust picture that may underpin this strategic move.
The company's market capitalization stands at a solid $567.73 million, reflecting its substantial presence in the insurance market. In terms of valuation, Universal Insurance boasts an attractive price-to-earnings (P/E) ratio of 8.79, which further adjusts to 8.5 when looking at the last twelve months as of Q4 2023. This indicates that the stock could be undervalued compared to earnings, a factor likely considered in the authorization of the buyback program.
InvestingPro Tips highlight several key strengths for Universal Insurance, including a consistent dividend payout for 19 consecutive years, which may reassure investors looking for stable income. Additionally, the company has experienced a strong return over the past month and three months, with a significant 58% price uptick over the last six months, suggesting a positive trend in investor sentiment.
Revenue growth also stands out, with a 13.82% increase in the last twelve months as of Q4 2023, while maintaining a healthy gross profit margin of 28.67%. These figures, combined with a 3.93% dividend yield as of the most recent data in 2024, could make Universal Insurance an appealing choice for both growth and income-focused investors.
For those interested in further insights, InvestingPro offers additional tips on Universal Insurance, which can be explored at https://www.investing.com/pro/UVE. And now, users can take advantage of an exclusive offer with the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable investment information.
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