Heritage Insurance (NYSE:HRTG) Hits New 1-Year High After Better-Than-Expected Earnings

Key Points

• Heritage Insurance exceeded quarterly expectations, reporting $2.05 in earnings per share versus the $1.25 consensus estimate and revenue of $214.19 million, slightly above forecasts. Shares reached a new 52-week high and were trading up 13.9%.
• Analyst sentiment remains generally positive, with three Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $33.50. Recent targets range from $31 to $36.
• Institutional investors own 59.03% of the company and several funds increased their positions, while insider activity was mixed: a director bought 16,000 shares, but insiders collectively sold 27,600 shares over the past 90 days.

Shares of Heritage Insurance Holdings, Inc. (NYSE:HRTG - Get Free Report) hit a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $31.99 and last traded at $34.77, with a volume of 336 shares. The stock had previously closed at $30.23.

The insurance provider reported $2.05 earnings per share for the quarter, topping the consensus estimate of $1.25 by $0.80. Heritage Insurance had a return on equity of 43.68% and a net margin of 23.76%.The company had revenue of $214.19 million for the quarter, compared to analysts' expectations of $212.71 million.

Analyst Ratings Changes

Several research firms have recently issued reports on HRTG. Truist Financial dropped their price target on shares of Heritage Insurance from $39.00 to $36.00 and set a "buy" rating for the company in a research note on Monday, May 11th. Weiss Ratings cut Heritage Insurance from a "buy (b)" rating to a "buy (b-)" rating in a research note on Monday, May 11th. Wall Street Zen cut Heritage Insurance from a "buy" rating to a "hold" rating in a report on Saturday, May 9th. Zacks Research upgraded shares of Heritage Insurance from a "strong sell" rating to a "hold" rating in a report on Friday, July 10th. Finally, Piper Sandler upped their price objective on shares of Heritage Insurance from $27.00 to $31.00 and gave the company an "overweight" rating in a research note on Wednesday, July 15th. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, Heritage Insurance presently has an average rating of "Moderate Buy" and a consensus price target of $33.50.

Insider Buying and Selling

In related news, Director Paul L. Whiting acquired 16,000 shares of Heritage Insurance stock in a transaction dated Tuesday, May 19th. The stock was bought at an average price of $23.56 per share, with a total value of $376,960.00. Following the transaction, the director directly owned 103,126 shares in the company, valued at $2,429,648.56. This represents a 18.36% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Sharon Binnun sold 9,200 shares of Heritage Insurance stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $30.03, for a total transaction of $276,276.00. Following the completion of the sale, the chief accounting officer owned 96,388 shares of the company's stock, valued at $2,894,531.64. This represents a 8.71% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 27,600 shares of company stock worth $744,924 over the last 90 days. Company insiders own 9.20% of the company's stock.

Hedge Funds Weigh In On Heritage Insurance

Several institutional investors have recently made changes to their positions in the stock. Optiver Holding B.V. grew its stake in shares of Heritage Insurance by 510.0% in the 1st quarter. Optiver Holding B.V. now owns 1,403 shares of the insurance provider's stock valued at $37,000 after buying an additional 1,173 shares during the period. Bank of America Corp DE raised its stake in Heritage Insurance by 92.5% during the 1st quarter. Bank of America Corp DE now owns 194,689 shares of the insurance provider's stock worth $5,111,000 after buying an additional 93,548 shares during the period. Empowered Funds LLC raised its stake in Heritage Insurance by 6.5% during the 1st quarter. Empowered Funds LLC now owns 162,178 shares of the insurance provider's stock worth $4,257,000 after buying an additional 9,924 shares during the period. Quantinno Capital Management LP boosted its holdings in Heritage Insurance by 26.7% in the first quarter. Quantinno Capital Management LP now owns 23,781 shares of the insurance provider's stock worth $624,000 after acquiring an additional 5,015 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in Heritage Insurance by 52.6% in the first quarter. Arrowstreet Capital Limited Partnership now owns 218,655 shares of the insurance provider's stock worth $5,740,000 after acquiring an additional 75,339 shares in the last quarter. Institutional investors and hedge funds own 59.03% of the company's stock.

Heritage Insurance Trading Up 13.9%

The company has a debt-to-equity ratio of 0.15, a current ratio of 0.80 and a quick ratio of 0.80. The firm has a fifty day simple moving average of $25.59 and a 200-day simple moving average of $25.95. The firm has a market cap of $1.04 billion, a P/E ratio of 5.13 and a beta of 0.89.

Heritage Insurance Company Profile

Heritage Insurance Holdings, Inc NYSE: HRTG is a property and casualty insurance holding company that offers homeowners insurance and related coverage products in the United States. Through its primary subsidiary, Heritage Property & Casualty Insurance Company, the firm underwrites standard and non-standard personal lines insurance, including homeowners, dwelling fire, flood, and condominium policies. Heritage leverages a network of independent insurance agents to distribute its products across select regional markets, with an emphasis on serving property owners in areas prone to severe weather events.

Founded in 2011 and headquartered in Jupiter, Florida, Heritage Insurance has grown to become one of the leading providers of residential property insurance in the state.

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