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On September 30, 2024, Donald Smith & Co (Trades, Portfolio)., a renowned investment firm, executed a significant transaction involving the shares of Universal Insurance Holdings Inc (NYSE:UVE). The firm reduced its holdings by 24,602 shares, which adjusted its total ownership to 1,545,676 shares. This move, priced at $22.16 per share, reflects a subtle yet strategic adjustment in the firm’s portfolio, with a -0.01% impact on its overall composition.
Founded in 1980 by Donald G. Smith, Donald Smith & Co (Trades, Portfolio). has been a prominent player in the investment landscape, focusing on deep-value investment strategies. The firm targets undervalued companies, emphasizing those in the bottom decile of price-to-tangible book ratios with promising earnings potential over the medium term. This approach reflects a disciplined, bottom-up investment methodology that has guided the firm’s decisions for decades.
Universal Insurance Holdings Inc, based in the USA, operates as a comprehensive personal residential homeowner insurance entity. Since its IPO on June 6, 2003, the company has expanded its offerings to include a variety of related coverages across the United States. With a market capitalization of $548.025 million and a current stock price of $19.24, Universal Insurance Holdings maintains a robust presence in the insurance industry.
The recent transaction slightly decreased Donald Smith & Co (Trades, Portfolio).’s stake in Universal Insurance Holdings, bringing its ownership to 5.43% of the company. This adjustment aligns with the firm’s strategy to optimize its investment in the insurance sector, reflecting a cautious yet focused approach to portfolio management.
Following the transaction, Universal Insurance Holdings Inc’s stock has seen a decline of 13.18% in its price, currently undervalued at a GF Value of $18.37. Despite this, the company holds a GF Score of 73/100, indicating a potential for average to above-average performance in the future. The stock’s resilience is further underscored by its strong Profitability Rank and robust interest coverage ratio of 20.54.
Donald Smith & Co (Trades, Portfolio). remains the largest shareholder of Universal Insurance Holdings, demonstrating confidence in its long-term value. The stock’s performance, coupled with its solid financial metrics such as a Return on Equity (ROE) of 23.96% and a Cash to Debt ratio of 2.79, suggests a stable financial footing. Analysts anticipate that the firm’s strategic adjustments and the intrinsic strength of Universal Insurance Holdings will foster favorable outcomes.