American Coastal Insurance (NASDAQ:ACIC) Trading Down 4.3% - Should You Sell?

Key Points

• American Coastal Insurance (NASDAQ:ACIC) fell 4.3% in Wednesday trading, briefly touching $10.48 before last trading near $10.37 on much lighter-than-average volume.
• The company’s latest earnings missed expectations, posting $0.39 EPS versus the $0.44 consensus and revenue of $71.22 million versus the $75.78 million estimate.
• Analyst sentiment is mixed, with recent rating changes leaving ACIC at an overall Hold average; meanwhile, institutional investors such as Empyrean Capital Partners and Sei Investments increased their stakes in the stock.

American Coastal Insurance Corporation (NASDAQ:ACIC - Get Free Report) traded down 4.3% during trading on Wednesday . The company traded as low as $10.48 and last traded at $10.3650. 11,098 shares were traded during mid-day trading, a decline of 96% from the average session volume of 252,207 shares. The stock had previously closed at $10.83.

Wall Street Analysts Forecast Growth

ACIC has been the subject of a number of analyst reports. Weiss Ratings upgraded shares of American Coastal Insurance from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, April 29th. Zacks Research downgraded shares of American Coastal Insurance from a "hold" rating to a "strong sell" rating in a research report on Thursday, May 21st. Finally, Wall Street Zen cut American Coastal Insurance from a "buy" rating to a "hold" rating in a research report on Saturday, May 9th. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold".

American Coastal Insurance Stock Down 2.5%

The company has a market cap of $511.74 million, a P/E ratio of 5.03, a price-to-earnings-growth ratio of 3.88 and a beta of -0.51. The company has a fifty day moving average of $10.76 and a 200 day moving average of $11.19.

American Coastal Insurance (NASDAQ:ACIC - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported $0.39 earnings per share for the quarter, missing analysts' consensus estimates of $0.44 by ($0.05). American Coastal Insurance had a net margin of 31.32% and a return on equity of 32.26%. The firm had revenue of $71.22 million during the quarter, compared to the consensus estimate of $75.78 million. As a group, research analysts forecast that American Coastal Insurance Corporation will post 0.96 EPS for the current year.

Hedge Funds Weigh In On American Coastal Insurance

Large investors have recently added to or reduced their stakes in the company. Empyrean Capital Partners LP increased its stake in American Coastal Insurance by 19.8% in the 1st quarter. Empyrean Capital Partners LP now owns 1,126,987 shares of the company's stock worth $12,679,000 after buying an additional 186,487 shares in the last quarter. Punch & Associates Investment Management Inc. grew its position in shares of American Coastal Insurance by 4.2% during the first quarter. Punch & Associates Investment Management Inc. now owns 808,705 shares of the company's stock worth $9,098,000 after purchasing an additional 32,305 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in American Coastal Insurance by 19.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 750,108 shares of the company's stock worth $8,439,000 after purchasing an additional 122,778 shares in the last quarter. Sei Investments Co. boosted its stake in American Coastal Insurance by 118.6% in the 1st quarter. Sei Investments Co. now owns 601,481 shares of the company's stock worth $6,767,000 after purchasing an additional 326,340 shares during the period. Finally, Renaissance Technologies LLC grew its holdings in American Coastal Insurance by 18.5% during the 1st quarter. Renaissance Technologies LLC now owns 539,257 shares of the company's stock valued at $6,067,000 after buying an additional 84,300 shares in the last quarter. Hedge funds and other institutional investors own 22.11% of the company's stock.

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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