American Coastal Insurance (NASDAQ:ACIC) Shares Gap Down Following Weak Earnings

Key Points

• American Coastal's shares gapped down after its quarterly results, opening at $11.01 (prior close $11.87) and last trading at $10.42 on volume 636,484 after reporting EPS of $0.39 versus $0.44 expected and revenue of $71.22M versus $75.78M expected.
• Analyst coverage is mixed — Oppenheimer initiated at "market perform" while Wall Street Zen and Weiss Ratings upgraded the stock to "buy", leaving a consensus rating of Moderate Buy.
• Several institutional investors increased stakes (Punch, Dimensional, Renaissance, Millennium, Empowered), institutional ownership is 22.11%, and the company trades at a market cap of $506.79M with a PE of 4.86.

American Coastal Insurance Corporation (NASDAQ:ACIC - Get Free Report)'s stock price gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $11.87, but opened at $11.01. American Coastal Insurance shares last traded at $10.42, with a volume of 636,484 shares.

The company reported $0.39 EPS for the quarter, missing analysts' consensus estimates of $0.44 by ($0.05). The company had revenue of $71.22 million for the quarter, compared to analyst estimates of $75.78 million. American Coastal Insurance had a net margin of 31.85% and a return on equity of 34.62%.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on ACIC shares. Oppenheimer started coverage on American Coastal Insurance in a report on Monday, January 12th. They set a "market perform" rating on the stock. Wall Street Zen upgraded American Coastal Insurance from a "hold" rating to a "buy" rating in a report on Tuesday, April 7th. Finally, Weiss Ratings upgraded American Coastal Insurance from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, April 29th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy".

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Punch & Associates Investment Management Inc. raised its position in American Coastal Insurance by 7.3% in the fourth quarter. Punch & Associates Investment Management Inc. now owns 776,400 shares of the company's stock valued at $9,806,000 after purchasing an additional 52,500 shares during the period. Dimensional Fund Advisors LP raised its position in American Coastal Insurance by 13.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 627,330 shares of the company's stock valued at $7,923,000 after purchasing an additional 75,408 shares during the period. Renaissance Technologies LLC raised its position in American Coastal Insurance by 28.1% in the fourth quarter. Renaissance Technologies LLC now owns 454,957 shares of the company's stock valued at $5,746,000 after purchasing an additional 99,900 shares during the period. Millennium Management LLC raised its position in American Coastal Insurance by 5.0% in the third quarter. Millennium Management LLC now owns 277,718 shares of the company's stock valued at $3,163,000 after purchasing an additional 13,297 shares during the period. Finally, Empowered Funds LLC raised its position in American Coastal Insurance by 216.9% in the fourth quarter. Empowered Funds LLC now owns 269,899 shares of the company's stock valued at $3,206,000 after purchasing an additional 184,720 shares during the period. Institutional investors and hedge funds own 22.11% of the company's stock.

American Coastal Insurance Price Performance

The company has a market capitalization of $506.79 million, a PE ratio of 4.86, a price-to-earnings-growth ratio of 2.62 and a beta of -0.46. The firm has a 50-day simple moving average of $11.48 and a 200 day simple moving average of $11.65.

American Coastal Insurance Company Profile

American Coastal Insurance Company NASDAQ: ACIC is a specialized property and casualty insurer focused on coastal residential and commercial lines across the Southeastern United States. Headquartered in St. Petersburg, Florida, the company underwrites policies designed to address windstorm and non-windstorm perils in areas exposed to hurricane risk. Since its founding in 2007, American Coastal has positioned itself to meet the insurance needs of homeowners, condominium associations, and small business owners operating near coastal zones.

Through a diversified portfolio of personal lines products, American Coastal offers homeowners insurance, dwelling fire, mobile home, condominium unitowners and renters policies.

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