HCI Group (NYSE:HCI) Stock Price Up 8.5% - Here's What Happened

Key Points

• HCI Group's stock price rose 8.5% to $152.28 on Monday, with trading volume increasing by 31% compared to its average daily volume.
• Brokerages have raised their price targets for HCI Group, with JMP Securities increasing it from $210 to $225 and Compass Point from $148 to $205, reflecting a positive outlook for the stock.
• The company reported earnings of $5.18 per share for the last quarter, exceeding estimates, and announced a quarterly dividend of $0.40 per share, representing a 1.0% yield.

HCI Group, Inc. (NYSE:HCI - Get Free Report)'s stock price rose 8.5% during mid-day trading on Monday . The company traded as high as $152.05 and last traded at $152.28. Approximately 175,945 shares were traded during trading, an increase of 31% from the average daily volume of 134,101 shares. The stock had previously closed at $140.33.

Analysts Set New Price Targets

A number of brokerages have weighed in on HCI. JMP Securities upped their target price on HCI Group from $210.00 to $225.00 and gave the stock a "market outperform" rating in a research note on Monday, May 19th. Compass Point upgraded HCI Group from a "neutral" rating to a "buy" rating and upped their target price for the stock from $148.00 to $205.00 in a research note on Friday, May 30th. Finally, Wall Street Zen upgraded HCI Group from a "buy" rating to a "strong-buy" rating in a research note on Saturday. Four investment analysts have rated the stock with a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, HCI Group currently has a consensus rating of "Buy" and an average target price of $181.25.

HCI Group Stock Up 9.5%

The company has a market cap of $1.78 billion, a PE ratio of 13.63 and a beta of 1.24. The stock's 50 day moving average price is $147.61 and its 200-day moving average price is $142.92. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.56 and a current ratio of 0.71.

HCI Group (NYSE:HCI - Get Free Report) last issued its earnings results on Thursday, August 7th. The insurance provider reported $5.18 earnings per share for the quarter, beating the consensus estimate of $4.47 by $0.71. The company had revenue of $221.92 million during the quarter, compared to analysts' expectations of $218.98 million. HCI Group had a return on equity of 25.84% and a net margin of 18.58%. On average, analysts predict that HCI Group, Inc. will post 6.78 earnings per share for the current year.

HCI Group Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, September 19th. Investors of record on Friday, August 15th will be issued a dividend of $0.40 per share. The ex-dividend date is Friday, August 15th. This represents a $1.60 annualized dividend and a yield of 1.0%. HCI Group's dividend payout ratio is currently 14.18%.

Institutional Investors Weigh In On HCI Group

Several institutional investors have recently bought and sold shares of the stock. Global Assets Advisory LLC purchased a new stake in HCI Group in the 2nd quarter worth approximately $46,000. USA Financial Formulas lifted its holdings in HCI Group by 250.0% in the 2nd quarter. USA Financial Formulas now owns 518 shares of the insurance provider's stock worth $79,000 after buying an additional 370 shares during the period. GAMMA Investing LLC lifted its holdings in HCI Group by 16.6% in the 1st quarter. GAMMA Investing LLC now owns 596 shares of the insurance provider's stock worth $89,000 after buying an additional 85 shares during the period. Russell Investments Group Ltd. lifted its holdings in HCI Group by 825.7% in the 1st quarter. Russell Investments Group Ltd. now owns 648 shares of the insurance provider's stock worth $97,000 after buying an additional 578 shares during the period. Finally, Simplex Trading LLC purchased a new stake in HCI Group in the 1st quarter worth approximately $148,000. 86.99% of the stock is currently owned by hedge funds and other institutional investors.

About HCI Group

HCI Group, Inc, together with its subsidiaries, engages in the property and casualty insurance, insurance management, reinsurance, real estate, and information technology businesses in Florida. It provides residential insurance products, such as homeowners, fire, flood, and wind-only insurance to homeowners, condominium owners, and tenants for properties, as well as offers reinsurance programs.

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