Weak On High Volume: Universal Insurance Holdings (UVE)
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Universal Insurance Holdings as such a stock due to the following factors:
- UVE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.7 million.
- UVE has traded 235,494 shares today.
- UVE is trading at 2.66 times the normal volume for the stock at this time of day.
- UVE is trading at a new low 3.02% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on UVE:
Universal Insurance Holdings, Inc., through its subsidiaries, provides various property and casualty insurance products. The company primarily underwrites homeowners' insurance products; and offers reinsurance intermediary brokerage services. The stock currently has a dividend yield of 2.3%. UVE has a PE ratio of 8. Currently there are no analysts that rate Universal Insurance Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Universal Insurance Holdings has been 709,300 shares per day over the past 30 days. Universal has a market cap of $736.6 million and is part of the financial sector and insurance industry. The stock has a beta of 1.83 and a short float of 10.5% with 1.74 days to cover. Shares are up 14.9% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Universal Insurance Holdings as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- UVE's very impressive revenue growth greatly exceeded the industry average of 15.4%. Since the same quarter one year prior, revenues leaped by 51.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- UVE's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- Powered by its strong earnings growth of 37.70% and other important driving factors, this stock has surged by 57.11% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, UVE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- UNIVERSAL INSURANCE HLDGS has improved earnings per share by 37.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, UNIVERSAL INSURANCE HLDGS increased its bottom line by earning $2.07 versus $1.57 in the prior year. This year, the market expects an improvement in earnings ($2.86 versus $2.07).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 42.0% when compared to the same quarter one year prior, rising from $21.34 million to $30.30 million.
- You can view the full Universal Insurance Holdings Ratings Report.
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