HCI Group (NYSE:HCI) Cut to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen downgraded HCI Group from "strong-buy" to "buy," while other firms' ratings vary; the stock's consensus is a Moderate Buy with a $231.67 average price target.
• HCI posted a strong quarter, reporting $7.25 EPS versus a $4.87 estimate and revenue of $246.24 million, with a 33.2% net margin and 36.3% return on equity.
• The shares trade around $156.85 (52-week range $136.37–$210.50), have a P/E of 6.92 and $2.04 billion market cap, and are ~87% owned by institutional investors.

HCI Group (NYSE:HCI - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report released on Saturday.

Several other equities analysts have also recently weighed in on the stock. Zacks Research raised shares of HCI Group from a "hold" rating to a "strong-buy" rating in a research report on Friday, February 27th. Citigroup reaffirmed a "market outperform" rating on shares of HCI Group in a research report on Friday, January 16th. Finally, Weiss Ratings cut shares of HCI Group from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $231.67.

HCI Group Price Performance

Shares of NYSE HCI opened at $156.85 on Friday. HCI Group has a fifty-two week low of $136.37 and a fifty-two week high of $210.50. The stock has a market cap of $2.04 billion, a price-to-earnings ratio of 6.92 and a beta of 1.16. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.95 and a current ratio of 0.95. The firm's 50-day simple moving average is $158.56 and its 200 day simple moving average is $173.20.

HCI Group (NYSE:HCI - Get Free Report) last announced its quarterly earnings results on Wednesday, February 25th. The insurance provider reported $7.25 earnings per share for the quarter, beating the consensus estimate of $4.87 by $2.38. HCI Group had a net margin of 33.19% and a return on equity of 36.34%. The business had revenue of $246.24 million for the quarter, compared to analysts' expectations of $232.36 million. As a group, research analysts anticipate that HCI Group will post 16.88 earnings per share for the current fiscal year.

Institutional Investors Weigh In On HCI Group

A number of hedge funds have recently modified their holdings of the stock. Inspire Investing LLC raised its holdings in shares of HCI Group by 59.5% in the 1st quarter. Inspire Investing LLC now owns 10,792 shares of the insurance provider's stock worth $1,669,000 after purchasing an additional 4,024 shares during the period. Sterling Capital Management LLC raised its holdings in shares of HCI Group by 2,001.4% in the 1st quarter. Sterling Capital Management LLC now owns 1,450 shares of the insurance provider's stock worth $224,000 after purchasing an additional 1,381 shares during the period. Louisiana State Employees Retirement System bought a new stake in shares of HCI Group in the 1st quarter worth approximately $742,000. Kestra Private Wealth Services LLC bought a new stake in shares of HCI Group in the 1st quarter worth approximately $479,000. Finally, SG Americas Securities LLC raised its holdings in shares of HCI Group by 82.2% in the 1st quarter. SG Americas Securities LLC now owns 8,968 shares of the insurance provider's stock worth $1,387,000 after purchasing an additional 4,045 shares during the period. Institutional investors own 86.99% of the company's stock.

HCI Group Company Profile

HCI Group, Inc NYSE: HCI is a holding company whose principal business is the underwriting and issuance of property and casualty insurance through its insurance subsidiaries. Headquartered in Jacksonville, Florida, the company focuses primarily on personal-line insurance products, writing homeowners, condominium, renters and mobile home policies. HCI Group also offers wind-only and flood coverage in coastal regions across the state, providing tailored solutions to both coastal and non-coastal communities.

The company distributes its insurance products through a network of independent agents and brokers, leveraging local market expertise to assess risk and deliver personalized service.

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