Pick Up This Bargain Even Cheaper Than Director Palmieri Did

There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on May 13, Universal Insurance Holdings Inc's Director, Ralph J. Palmieri, invested $25,800.00 into 1,000 shares of UVE, for a cost per share of $25.80. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.

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In trading on Thursday, bargain hunters could buy shares of Universal Insurance Holdings Inc ( UVE) and achieve a cost basis even cheaper than Palmieri, with shares changing hands as low as $25.61 per share. Universal Insurance Holdings Inc shares are currently trading off about 2.1% on the day. The chart below shows the one year performance of UVE shares, versus its 200 day moving average:

Universal Insurance Holdings Inc Chart

Looking at the chart above, UVE's low point in its 52 week range is $11.53 per share, with $27.73 as the 52 week high point — that compares with a last trade of $25.60. By comparison, below is a table showing the prices at which UVE insider buying was recorded over the last six months:

Purchased Insider Title Shares Price/Share Value
05/13/2015 Ralph J. Palmieri Director 1,000 $25.80 $25,800.00

The current annualized dividend paid by Universal Insurance Holdings Inc is $0.48/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 06/16/2015. Below is a long-term dividend history chart for UVE, which can be of good help in judging whether the most recent dividend with approx. 1.8% annualized yield is likely to continue.

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