HCI Group (NYSE:HCI) Shares Pass Below 200-Day Moving Average - Should You Sell?

Key Points

• HCI shares fell below its 200-day moving average, trading as low as $152.62 versus a 200-day MA of $177.67 and last quoted around $153.50, signaling short-term technical weakness.
• The company reported a strong quarter, beating EPS and revenue estimates with $7.25 EPS vs. $4.87 expected and $246.24M revenue, while showing a 36.34% ROE and a low PE of 6.77, suggesting attractive fundamentals and valuation.
• Analysts remain positive (average rating "Buy" and $231.67 average price target), the stock yields $1.60 annually (1.0%) and about 86.99% of shares are held by institutional investors.

HCI Group, Inc. (NYSE:HCI - Get Free Report)'s share price passed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $177.67 and traded as low as $152.62. HCI Group shares last traded at $153.4980, with a volume of 88,342 shares traded.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on HCI shares. Weiss Ratings reaffirmed a "buy (b)" rating on shares of HCI Group in a report on Monday, December 29th. Zacks Research raised HCI Group from a "hold" rating to a "strong-buy" rating in a report on Friday, February 27th. Finally, Citigroup restated a "market outperform" rating on shares of HCI Group in a research report on Friday, January 16th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, HCI Group currently has an average rating of "Buy" and an average price target of $231.67.

HCI Group Trading Down 1.0%

The firm has a market capitalization of $1.99 billion, a PE ratio of 6.77 and a beta of 1.19. The business has a 50 day moving average price of $162.36 and a 200-day moving average price of $177.67. 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 (NYSE:HCI - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The insurance provider reported $7.25 earnings per share for the quarter, beating analysts' consensus estimates of $4.87 by $2.38. HCI Group had a return on equity of 36.34% and a net margin of 33.19%.The firm had revenue of $246.24 million for the quarter, compared to the consensus estimate of $232.36 million. Analysts expect that HCI Group, Inc. will post 6.78 earnings per share for the current year.

HCI Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, February 20th were given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 1.0%. The ex-dividend date was Friday, February 20th. HCI Group's payout ratio is presently 7.05%.

Hedge Funds Weigh In On HCI Group

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Quent Capital LLC acquired a new stake in shares of HCI Group in the third quarter valued at about $25,000. Torren Management LLC acquired a new position in HCI Group during the fourth quarter worth about $26,000. Transamerica Financial Advisors LLC grew its position in HCI Group by 519.2% during the fourth quarter. Transamerica Financial Advisors LLC now owns 161 shares of the insurance provider's stock worth $31,000 after buying an additional 135 shares during the period. EverSource Wealth Advisors LLC increased its holdings in HCI Group by 557.6% in the second quarter. EverSource Wealth Advisors LLC now owns 217 shares of the insurance provider's stock valued at $33,000 after buying an additional 184 shares in the last quarter. Finally, Farther Finance Advisors LLC increased its holdings in HCI Group by 62.8% in the fourth quarter. Farther Finance Advisors LLC now owns 184 shares of the insurance provider's stock valued at $35,000 after buying an additional 71 shares in the last quarter. 86.99% of the stock is 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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