HCI Group (NYSE:HCI) Issues Earnings Results

HCI Group (NYSE:HCI) issued its earnings results on Wednesday. The insurance provider reported $6.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.96 by $1.49, FiscalAI reports. HCI Group had a return on equity of 28.80% and a net margin of 32.60%. The company had revenue of $244.91 million during the quarter, compared to analysts’ expectations of $247.75 million.

Here are the key takeaways from HCI Group’s conference call:

• Pre-tax income rose to $116 million from $91 million a year earlier, while diluted EPS increased to $6.45 from $4.90. Management attributed earnings growth outpacing premium growth to higher investment income, lower reinsurance costs and operating leverage.
• The balance sheet remained strong, with more than $2.1 billion in cash and investments, over $1 billion in stockholders’ equity and debt below 6% of capitalization. HCI said it repurchased 4% of its shares so far this year and reported book value per share above $90.
• Gross written premiums increased 12% year over year, led by CORE’s new residential business, which more than doubled from the prior quarter and reached about $8 million in monthly premiums. Management said the business is narrowing the gap to organic policy growth.
• Management expects insurance rates to decline somewhat in 2027, while describing the market as softer and competition for premiums as intense. Policy attrition has been steady at roughly 8% to 8.5% over the past year.
• Hurricane Isaias generated more than 1,300 claims, and HCI expects a $15 million net loss in the fourth quarter. The company said reinsurance limits its net exposure, but did not yet provide a gross-loss estimate.

HCI Group Trading Down 0.2%

Shares of NYSE HCI traded down $0.43 during trading on Wednesday, reaching $201.25. The stock had a trading volume of 147,210 shares, compared to its average volume of 170,318. HCI Group has a fifty-two week low of $144.75 and a fifty-two week high of $208.64. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.69 and a current ratio of 0.69. The business’s 50-day moving average price is $190.15 and its 200-day moving average price is $171.28. The company has a market cap of $2.50 billion, a P/E ratio of 8.69 and a beta of 0.96.

HCI Group Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, December 18th. Stockholders of record on Friday, November 20th will be given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Friday, November 20th. HCI Group’s dividend payout ratio (DPR) is currently 6.90%.

Analyst Ratings Changes

Several brokerages have recently weighed in on HCI. Weiss Ratings cut shares of HCI Group from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, August 11th. Cantor Fitzgerald began coverage on shares of HCI Group in a research report on Thursday, July 9th. They set an “overweight” rating and a $225.00 price objective for the company. Citizens Jmp raised their price objective on shares of HCI Group from $255.00 to $265.00 and gave the stock a “market outperform” rating in a research report on Friday, August 7th. Truist Financial set a $235.00 target price on shares of HCI Group in a research note on Thursday, October 1st. Finally, Citigroup reiterated a “market outperform” rating on shares of HCI Group in a report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Buy” and an average target price of $241.67.

About HCI Group

HCI Group, Inc is a Florida-based holding company focused primarily on property and casualty insurance. Through its insurance subsidiaries, the company provides residential property insurance products, including homeowners, condominium, renters and dwelling coverage, designed to protect policyholders against risks such as wind, fire, theft and other covered losses.

HCI’s insurance operations have historically been concentrated in Florida, one of the largest and most challenging residential property-insurance markets in the United States.