Trade-Ideas LLC identified Universal Insurance Holdings ( UVE) as a strong 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 $4.5 million.
  • UVE has traded 59,223 shares today.
  • UVE is trading at 4.93 times the normal volume for the stock at this time of day.
  • UVE is trading at a new high 6.06% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 services. The stock currently has a dividend yield of 2.9%. UVE has a PE ratio of 6. Currently there is 1 analyst that rates Universal Insurance Holdings a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Universal Insurance Holdings has been 317,000 shares per day over the past 30 days. Universal has a market cap of $674.1 million and is part of the financial sector and insurance industry. The stock has a beta of 1.73 and a short float of 16.6% with 20.20 days to cover. Shares are down 20.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Universal Insurance Holdings as a buy. 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, notable return on equity, increase in net income and expanding profit margins. 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 15.0%. Since the same quarter one year prior, revenues leaped by 58.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • UVE's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Insurance industry and the overall market, UNIVERSAL INSURANCE HLDGS's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 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 13.0% when compared to the same quarter one year prior, going from $22.33 million to $25.23 million.
  • The gross profit margin for UNIVERSAL INSURANCE HLDGS is rather high; currently it is at 59.79%. Regardless of UVE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, UVE's net profit margin of 15.33% compares favorably to the industry average.

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