HCI Group (NYSE:HCI) Shares Down 3.9% - What's Next?

Key Points

• HCI Group shares fell 3.9% on Wednesday, trading as low as $171.75 after closing at $179.94, with volume running well below average.
• Analyst sentiment remains positive overall: the stock has received multiple upgrades, including Cantor Fitzgerald’s new overweight rating and $225 price target, and its average target price is now $238.33.
• The company recently posted strong quarterly earnings of $5.45 per share, beating expectations, and also declared a $0.40 quarterly dividend payable September 18.

HCI Group, Inc. (NYSE:HCI - Get Free Report)'s stock price dropped 3.9% during mid-day trading on Wednesday . The company traded as low as $171.75 and last traded at $172.85. Approximately 29,991 shares were traded during trading, a decline of 82% from the average daily volume of 170,934 shares. The stock had previously closed at $179.94.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Weiss Ratings raised HCI Group from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, May 11th. Zacks Research upgraded shares of HCI Group from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 2nd. Cantor Fitzgerald initiated coverage on shares of HCI Group in a report on Thursday, July 9th. They issued an "overweight" rating and a $225.00 price objective on the stock. Finally, Wall Street Zen downgraded shares of HCI Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Buy" and an average target price of $238.33.

HCI Group Trading Down 2.5%

The business's 50 day moving average is $164.11 and its two-hundred day moving average is $163.62. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 0.03. The firm has a market capitalization of $2.24 billion, a P/E ratio of 7.70 and a beta of 1.03.

HCI Group (NYSE:HCI - Get Free Report) last announced its earnings results on Wednesday, May 6th. The insurance provider reported $5.45 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.26 by $0.19. HCI Group had a net margin of 32.64% and a return on equity of 30.88%. The firm had revenue of $242.88 million during the quarter, compared to analyst estimates of $245.09 million. Analysts expect that HCI Group, Inc. will post 18.41 EPS for the current year.

HCI Group Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Friday, August 21st will be given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Friday, August 21st. HCI Group's dividend payout ratio is 7.02%.

Hedge Funds Weigh In On HCI Group

Hedge funds have recently modified their holdings of the company. Torren Management LLC bought a new position in HCI Group during the fourth quarter valued at about $26,000. Transamerica Financial Advisors LLC raised its position in HCI Group by 519.2% in the fourth quarter. Transamerica Financial Advisors LLC now owns 161 shares of the insurance provider's stock worth $31,000 after acquiring an additional 135 shares in the last quarter. Farther Finance Advisors LLC lifted its holdings in HCI Group by 62.8% in the 4th quarter. Farther Finance Advisors LLC now owns 184 shares of the insurance provider's stock valued at $35,000 after acquiring an additional 71 shares during the last quarter. EverSource Wealth Advisors LLC lifted its holdings in HCI Group by 557.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 217 shares of the insurance provider's stock valued at $33,000 after acquiring an additional 184 shares during the last quarter. Finally, Global Assets Advisory LLC bought a new position in shares of HCI Group during the 1st quarter valued at about $46,000. 86.99% of the stock is currently owned by institutional investors and hedge funds.

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.

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