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United Insurance (UIHC) Up to Strong Buy, Core Growth Solid
By Zacks Equity Research4 minutes ago
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On Sep 30, 2014, Zacks Investment Research upgraded United Insurance Holdings Corp.(UIHC) by two notches to a Zacks Rank #1 (Strong Buy) from Zacks Rank #3 (Hold).
Why the Upgrade?
United Insurancehas been experiencing upward estimate revisions on the back of improved financials and core growth from enhanced premiums and regionally-diversified portfolio.
Additionally, United Insurance maintained its earnings streak in the last four quarters with an average beat of 56.9%. This property-casualty insurer also outperformed the one-year Nasdaq index, which posed growth of 19.1% against a return of 65.5% clocked by the company.
On Jul 29, AmTrust reported second-quarter 2014 operating earnings per share of 46 cents, which outpaced the Zacks Consensus Estimate by about 7% and the year-ago quarter figure by 64.3%.
The year-over-year top-line growth of 39% stemmed from net earned premiums that increased 39.6% along with 94.6% growth in investment income. Net realized gain of $31 million against loss of $149 million in the year-ago quarter also boosted results. Despite higher underwriting, operating and policy acquisition expenses, expense ratio and margins witnessed improvement. Notably, combined ratio improved 860 basis points year over year to 81.2%.
United Insurance has also witnessed robust expansion in markets outside Florida. These markets also accounted for about 60% of new business generated by the company in the first half of 2014. An improved book value and prudent capital management also augur optimism, while steady shareholder return enlists a positive investor sentiment in the stock.
Accordingly, the Zacks Consensus Estimate for 2014 and 2015 moved north by 7.1% and 1.2% to $1.82 and $1.65 per share, respectively, in the last 60 days. Notably, no downward estimate revision was witnessed for these years.
Moreover, the Most Accurate Estimate for United Insurance’s 2014 and 2015 earnings stands at $1.85 and $1.70 a share, resulting in an Earnings ESP of +1.7% and +3.0%, respectively. This indicates likely earnings beat for both the years.
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Why You Shouldn't Bet Against United Insurance Holdings (UIHC) Stock By Zacks Equity Research3 hours ago
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One stock that might be an intriguing choice for investors right now is United Insurance Holdings Corp. (UIHC).This is because this security in the Insurance-Property & Casualty space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Insurance-Property & Casualty space as it currently has a Zacks Industry Rank of 86 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, United Insurance Holdings is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm’s prospects in both the short and long term.
In fact, over the past month, current quarter estimates have risen from $1.72 per share to $1.74 per share, while current year estimates have risen from 23 cents per share to 26 cents per share. This has helped UIHC to earn a Zacks Rank #3 (Hold), further underscoring the company’s solid position.
So, if you are looking for a decent pick in a strong industry, consider United Insurance Holdings. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
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I think out good momentum got drunk and fell down. This stock is getting very cheap at these levels.Originally posted by mrmarket View PostLeave a comment:
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UIHC insider cluster buy reported by Zack's:
"• Sure, insurance might be kind of boring, but the growth seen by some of the small-cap members of this space is not. For example, United Insurance Holdings Corp. (UIHC) is a p&c insurer that’s expanding out of its home base of Florida and has seen shares soar by nearly 200% over the last two years. However, the company has pulled back from its recent highs, which has inspired a cluster buy. So far this month, the Chief Information Officer, two Directors, the VP of Operations & Business Development, a 10% owner, and even the spouse of the General Counsel have all made big buys. Tracey is bringing the Insider Trader to fully invested by putting the portfolio’s remaining cash into UIHC. Earnings for the company are expected to grow 36% this year."
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Not sure if the poster is correct, but how many times have you seen my picks sell off on reasonably good earnings.....then bounce back aggressively because of valuation metrics?Leave a comment:
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A Yahoo poster comments on UIHC , "Travelers and others are beating estimates handily. UIHC is so cheap on valuation basis as well as potential takeout target. Look for Company to make $4.00 EPS in 2015 have stock price of $50 in 12-18 months and get acquired for $60-70.
Long the stock and calls. Looking for $25 by August expiration and $30 by November."
Hopefully this poster is correct!Leave a comment:
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