Neptune Insurance (NYSE:NP) Announces Quarterly Earnings Results

Key Points

• Neptune Insurance beat quarterly expectations: EPS was $0.17 versus the $0.16 consensus estimate, while revenue reached $59.57 million, above forecasts of $56.59 million.
• Shares rose $0.24 to $29.54, giving the company a market capitalization of approximately $4.05 billion; the stock trades at a high price-to-earnings ratio of 118.15.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $31.54, although several firms recently lowered their targets. Insiders sold roughly 3.82 million shares worth $125.6 million over the past 90 days.

Neptune Insurance (NYSE:NP - Get Free Report) released its earnings results on Tuesday. The company reported $0.17 EPS for the quarter, beating the consensus estimate of $0.16 by $0.01, FiscalAI reports. Neptune Insurance had a negative return on equity of 18.77% and a net margin of 21.45%. The firm had revenue of $59.57 million during the quarter, compared to analyst estimates of $56.59 million.

Neptune Insurance Price Performance

Shares of NP traded up $0.24 on Tuesday, reaching $29.54. 435,143 shares of the stock traded hands, compared to its average volume of 589,194. Neptune Insurance has a 12 month low of $14.78 and a 12 month high of $35.15. The firm has a market cap of $4.05 billion and a price-to-earnings ratio of 118.15. The stock's 50-day moving average price is $30.52 and its 200-day moving average price is $29.33.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on NP. Mizuho lowered their price objective on shares of Neptune Insurance from $32.00 to $31.00 and set a "neutral" rating for the company in a research report on Wednesday, October 7th. Wells Fargo & Company cut their price objective on Neptune Insurance from $37.00 to $34.00 and set an "overweight" rating for the company in a report on Monday, October 12th. Piper Sandler restated an "overweight" rating on shares of Neptune Insurance in a research report on Monday. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of Neptune Insurance in a report on Wednesday, September 23rd. Finally, Keefe, Bruyette & Woods decreased their target price on Neptune Insurance from $34.00 to $33.00 and set a "market perform" rating for the company in a research report on Friday, July 24th. Eight investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $31.54.

Insider Transactions at Neptune Insurance

In other Neptune Insurance news, CFO James Steiner sold 57,012 shares of the business's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $31.71, for a total transaction of $1,807,850.52. Following the completion of the sale, the chief financial officer directly owned 3,749,050 shares of the company's stock, valued at approximately $118,882,375.50. The trade was a 1.50% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, major shareholder Vii L.P. Ftv sold 1,867,840 shares of the firm's stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $33.22, for a total value of $62,049,644.80. Following the transaction, the insider owned 14,442,941 shares in the company, valued at approximately $479,794,500.02. This trade represents a 11.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 3,815,570 shares of company stock valued at $125,567,525. 74.26% of the stock is owned by insiders.

Neptune Insurance Company Profile

Neptune Insurance is a technology-enabled insurance company focused primarily on flood coverage for residential and commercial policyholders. Its platform is designed to streamline the insurance process, including quoting, underwriting and policy management, while providing coverage tailored to properties that may face flood-related risks.

The company offers flood insurance products for homeowners, renters, landlords and businesses. Its offerings are intended to complement or provide an alternative to coverage available through traditional government and private-market flood insurance programs, depending on the policyholder's location and eligibility.

Neptune's business is primarily focused on the United States, where flood risk varies significantly by geography and many properties are outside federally designated high-risk areas.

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