HCI Group (NYSE:HCI) Releases Earnings Results

Key Points

• HCI reported Q1 diluted EPS of $5.45, beating estimates by $0.19, with record pre-tax income of $115 million, a net margin of 33.19% and ROE of 36.34%, while management reiterated a through-cycle combined-ratio target of 60% ±5% and posted 57% in Q1, underscoring strong underwriting performance.
• The balance sheet is materially stronger—shareholders' equity doubled to over $1 billion, the company holds roughly $2 billion in cash/fixed-term securities, carries very low debt (~6%), and is returning capital via an $80 million buyback program (≈$37.5M deployed) and a quarterly dividend of $0.40 (1.0% yield).
• Revenue slightly missed expectations for the quarter and the stock traded down to $152.74 after the release; analysts collectively rate HCI a "Moderate Buy" with an average price target of $231.67 and the shares trade at a P/E of ~6.7.

HCI Group (NYSE:HCI - Get Free Report) released its quarterly earnings data on Wednesday. The insurance provider reported $5.45 earnings per share for the quarter, topping analysts' consensus estimates of $5.26 by $0.19, FiscalAI reports. HCI Group had a net margin of 33.19% and a return on equity of 36.34%. The business had revenue of $242.88 million for the quarter, compared to analysts' expectations of $245.09 million.

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

• HCI reported a record Q1 — pre-tax income rose 15% to $115 million and diluted EPS was $5.45, with total revenue up ~12% helped by higher investment and Exzeo-related other income.
• Management reiterated a through-cycle combined ratio target of 60% ±5%; the company posted 57% for FY2025 and again in Q1, highlighting strong underwriting and low claims frequency.
• The balance sheet is materially stronger — shareholder equity doubled to over $1 billion, ~$2 billion in cash/fixed-term securities, book value ≈ $85 (pro forma ≈ $145 including Exzeo/real estate), low debt (6%), and an $80 million buyback program with ~$37.5 million deployed (239,000 shares).
• HCI licensed a second reinsurer, Fortex Reinsurance (Cayman) to add reinsurance flexibility alongside Claddaugh (Bermuda) and is finalizing its June 1 reinsurance placements as the market softens; specifics will be announced when complete.
• Management is pursuing 2–3 potential Exzeo-like, insurance-related growth initiatives, advancing an E&S surplus-lines effort, and remaining opportunistic on M&A (preferably post-storm), though outcomes and timing are uncertain.

HCI Group Price Performance

HCI traded down $1.17 on Thursday, reaching $152.74. The company had a trading volume of 263,729 shares, compared to its average volume of 165,168. The company has a fifty day moving average of $158.30 and a 200-day moving average of $171.10. The company has a market capitalization of $1.96 billion, a P/E ratio of 6.73 and a beta of 1.09. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.03. HCI Group has a one year low of $136.37 and a one year high of $210.50.

HCI Group Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Friday, May 15th will be given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Friday, May 15th. HCI Group's dividend payout ratio is currently 7.05%.

Analysts Set New Price Targets

A number of research firms recently weighed in on HCI. Weiss Ratings cut shares of HCI Group from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, April 21st. Zacks Research raised shares of HCI Group from a "hold" rating to a "strong-buy" rating in a report on Friday, February 27th. Citigroup reaffirmed a "market outperform" rating on shares of HCI Group in a report on Friday, January 16th. Finally, Wall Street Zen raised shares of HCI Group from a "buy" rating to a "strong-buy" rating in a report on Sunday. One research 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. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $231.67.

Hedge Funds Weigh In On HCI Group

A number of institutional investors and hedge funds have recently bought and sold shares of HCI. Freestone Grove Partners LP grew its position in HCI Group by 353.6% in the 4th quarter. Freestone Grove Partners LP now owns 275,108 shares of the insurance provider's stock valued at $52,735,000 after buying an additional 214,464 shares in the last quarter. Danske Bank A S bought a new position in HCI Group in the 3rd quarter valued at about $19,256,000. Jacobs Levy Equity Management Inc. grew its position in HCI Group by 129.1% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 125,399 shares of the insurance provider's stock valued at $24,038,000 after buying an additional 70,662 shares in the last quarter. Balyasny Asset Management L.P. grew its position in HCI Group by 46.8% in the 2nd quarter. Balyasny Asset Management L.P. now owns 185,430 shares of the insurance provider's stock valued at $28,222,000 after buying an additional 59,134 shares in the last quarter. Finally, Invesco Ltd. grew its position in HCI Group by 85.6% in the 3rd quarter. Invesco Ltd. now owns 127,203 shares of the insurance provider's stock valued at $24,414,000 after buying an additional 58,663 shares in the last quarter. Institutional investors own 86.99% of the company's stock.

More HCI Group News

Here are the key news stories impacting HCI Group this week:

• Positive Sentiment: Q1 EPS and profitability beat expectations — HCI reported Q1 diluted EPS of $5.45, higher net income and pre-tax income versus last year, and strong margins/ROE, which supports valuation given solid underwriting performance. HCI Group Reports First Quarter 2026 Results
• Positive Sentiment: Expanded reinsurance flexibility and aggressive combined-ratio target — HCI is working with Fortex Re and is targeting a 60% combined ratio, signaling management is focused on improving underwriting economics long term. HCI targets 60% combined ratio as it expands reinsurance flexibility with Fortex Re and continues $80M buyback
• Positive Sentiment: Continued share buybacks — Management is accelerating buybacks (part of an $80M program) alongside peers, which supports EPS and signals confidence in the balance sheet. Horizon, HCI ramp up buybacks amid valuation gaps
• Neutral Sentiment: Dividend and capital-allocation scrutiny — Commentary and analysis highlight management choices between dividends and buybacks; this is relevant to yield-seeking investors but not an immediate earnings driver. Does HCI Group’s (HCI) New Dividend Level Reveal Its True Capital Allocation Priorities?
• Negative Sentiment: Revenue slightly missed estimates — Q1 revenue came in a bit below analyst expectations, which may have prompted profit-taking despite the EPS beat and stronger margins. HCI Group NYSE: HCI Reports Sales Below Analyst Estimates In Q1 CY2026 Earnings

About HCI Group

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.