Universal Insurance Holdings (UVE) stock is soaring 5.25% in intraday trading on Friday, following the announcement of a new share repurchase program authorized by the company's board of directors. The Florida-based insurance carrier has been given the green light to repurchase up to $20 million of its outstanding common stock, a move that has evidently excited investors.

The newly authorized share repurchase program, which runs through May 1, 2027, allows Universal to buy back its shares from time to time in open market transactions at prevailing market prices. This strategic decision by the board demonstrates confidence in the company's financial position and commitment to enhancing shareholder value.

Investors are reacting positively to this news, as share repurchases typically lead to increased earnings per share and can signal that a company believes its stock is undervalued. The announcement comes on the heels of Universal's earlier statement in February, where the company reported having already placed 92% of its first event catastrophe tower ahead of its June 1 renewal, along with securing significant additional multiyear capacity extending to the 2026 hurricane season. This combination of financial management and risk preparedness appears to be bolstering investor confidence in Universal Insurance's long-term prospects.