Heritage Insurance (NYSE:HRTG) Shares Gap Up – Still a Buy?

Shares of Heritage Insurance Holdings, Inc. (NYSE:HRTG) gapped up before the market opened on Monday . The stock had previously closed at $26.28, but opened at $27.86. Heritage Insurance shares last traded at $28.59, with a volume of 8,968 shares changing hands.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Weiss Ratings downgraded shares of Heritage Insurance from a “buy (b)” rating to a “buy (b-)” rating in a research report on Monday, May 11th. Zacks Research upgraded Heritage Insurance from a “strong sell” rating to a “hold” rating in a research report on Friday, July 10th. Truist Financial cut their price target on Heritage Insurance from $39.00 to $36.00 and set a “buy” rating for the company in a research note on Monday, May 11th. Piper Sandler upped their price target on Heritage Insurance from $27.00 to $31.00 and gave the stock an “overweight” rating in a report on Wednesday, July 15th. Finally, Wall Street Zen downgraded Heritage Insurance from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. Three investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $33.50.

Heritage Insurance Trading Up 2.4%

The company’s fifty day simple moving average is $24.53 and its 200-day simple moving average is $25.76. The firm has a market capitalization of $864.22 million, a PE ratio of 4.37 and a beta of 0.88. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.80 and a quick ratio of 0.80.

Heritage Insurance (NYSE:HRTG) last released its earnings results on Thursday, May 7th. The insurance provider reported $1.19 EPS for the quarter, missing analysts’ consensus estimates of $1.53 by ($0.34). The company had revenue of $212.66 million for the quarter, compared to analysts’ expectations of $215.39 million. Heritage Insurance had a return on equity of 43.68% and a net margin of 23.76%. As a group, sell-side analysts expect that Heritage Insurance Holdings, Inc. will post 4.33 earnings per share for the current fiscal year.

Insider Activity

In other news, CAO Sharon Binnun sold 9,200 shares of the firm’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $26.58, for a total value of $244,536.00. Following the transaction, the chief accounting officer owned 105,588 shares in the company, valued at $2,806,529.04. This trade represents a 8.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul L. Whiting purchased 16,000 shares of the stock in a transaction dated Tuesday, May 19th. The stock was purchased at an average cost of $23.56 per share, for a total transaction of $376,960.00. Following the completion of the purchase, the director directly owned 103,126 shares of the company’s stock, valued at approximately $2,429,648.56. The trade was a 18.36% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders sold 27,600 shares of company stock worth $735,356. 9.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Advisory Services Network LLC acquired a new stake in Heritage Insurance during the 3rd quarter worth $25,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of Heritage Insurance in the fourth quarter valued at about $31,000. Royal Bank of Canada raised its position in shares of Heritage Insurance by 72.6% in the fourth quarter. Royal Bank of Canada now owns 1,182 shares of the insurance provider’s stock valued at $35,000 after buying an additional 497 shares during the last quarter. Optiver Holding B.V. lifted its stake in shares of Heritage Insurance by 510.0% in the first quarter. Optiver Holding B.V. now owns 1,403 shares of the insurance provider’s stock worth $37,000 after buying an additional 1,173 shares in the last quarter. Finally, Harbour Investments Inc. purchased a new position in shares of Heritage Insurance in the fourth quarter worth about $50,000. 59.03% of the stock is owned by institutional investors and hedge funds.

About Heritage Insurance

Heritage Insurance Holdings, Inc (NYSE: HRTG) is a property and casualty insurance holding company that offers homeowners insurance and related coverage products in the United States. Through its primary subsidiary, Heritage Property & Casualty Insurance Company, the firm underwrites standard and non-standard personal lines insurance, including homeowners, dwelling fire, flood, and condominium policies. Heritage leverages a network of independent insurance agents to distribute its products across select regional markets, with an emphasis on serving property owners in areas prone to severe weather events.

Founded in 2011 and headquartered in Jupiter, Florida, Heritage Insurance has grown to become one of the leading providers of residential property insurance in the state.