Heritage Insurance (NYSE:HRTG) Releases Earnings Results

Key Points

• Earnings miss: Heritage reported EPS of $1.19 versus a $1.53 consensus and revenue of $212.66M versus $215.39M, though it still posted a strong return on equity (47.28%) and net margin (23.08%).
• Market reaction and valuation: HRTG slid to $28.17 on the news, trades at a P/E of 4.46 with a market cap of $854.96M, and carries a consensus analyst rating of Buy with a $33.50 target (some firms higher).
• Insider selling amid heavy institutional ownership: Insiders sold 130,918 shares (~$3.45M) in the last three months while insiders still own 15.20% of the stock and institutions hold about 59.03%.

Heritage Insurance (NYSE:HRTG - Get Free Report) posted its earnings results on Thursday. The insurance provider reported $1.19 EPS for the quarter, missing the consensus estimate of $1.53 by ($0.34), FiscalAI reports. The company had revenue of $212.66 million for the quarter, compared to the consensus estimate of $215.39 million. Heritage Insurance had a return on equity of 47.28% and a net margin of 23.08%.

Heritage Insurance Price Performance

HRTG stock traded down $0.55 during midday trading on Thursday, reaching $28.17. 379,352 shares of the company's stock traded hands, compared to its average volume of 280,625. The company has a 50-day simple moving average of $27.37 and a two-hundred day simple moving average of $27.06. Heritage Insurance has a 1-year low of $16.83 and a 1-year high of $31.98. The company has a market cap of $854.96 million, a price-to-earnings ratio of 4.46 and a beta of 1.03. The company has a quick ratio of 0.83, a current ratio of 0.83 and a debt-to-equity ratio of 0.16.

Analyst Ratings Changes

Several research firms recently commented on HRTG. Citigroup restated a "market perform" rating on shares of Heritage Insurance in a research report on Tuesday, March 10th. Truist Financial raised their target price on Heritage Insurance from $37.00 to $39.00 and gave the stock a "buy" rating in a research report on Monday, March 9th. Weiss Ratings restated a "buy (b)" rating on shares of Heritage Insurance in a research report on Friday, March 27th. Finally, Zacks Research upgraded Heritage Insurance from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, March 11th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, Heritage Insurance has a consensus rating of "Buy" and a consensus target price of $33.50.

Insider Activity at Heritage Insurance

In related news, insider Timothy Moura sold 24,769 shares of the firm's stock in a transaction on Thursday, April 2nd. The stock was sold at an average price of $25.76, for a total transaction of $638,049.44. Following the completion of the sale, the insider directly owned 160,045 shares of the company's stock, valued at $4,122,759.20. This trade represents a 13.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Sharon Binnun sold 9,200 shares of the firm's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $28.99, for a total value of $266,708.00. Following the sale, the chief accounting officer directly owned 123,988 shares of the company's stock, valued at $3,594,412.12. This represents a 6.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 130,918 shares of company stock valued at $3,446,606 in the last three months. Corporate insiders own 15.20% of the company's stock.

Institutional Investors Weigh In On Heritage Insurance

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Mcguire Capital Advisors Inc. acquired a new stake in Heritage Insurance during the 4th quarter valued at $31,000. Invesco Ltd. increased its stake in shares of Heritage Insurance by 49.7% in the 4th quarter. Invesco Ltd. now owns 77,421 shares of the insurance provider's stock valued at $2,265,000 after buying an additional 25,711 shares during the period. EP Wealth Advisors LLC acquired a new stake in shares of Heritage Insurance in the 4th quarter valued at $230,000. Empowered Funds LLC increased its stake in shares of Heritage Insurance by 6.3% in the 4th quarter. Empowered Funds LLC now owns 152,254 shares of the insurance provider's stock valued at $4,455,000 after buying an additional 9,090 shares during the period. Finally, XTX Topco Ltd increased its stake in shares of Heritage Insurance by 15.0% in the 4th quarter. XTX Topco Ltd now owns 22,872 shares of the insurance provider's stock valued at $669,000 after buying an additional 2,978 shares during the period. 59.03% of the stock is owned by institutional investors and hedge funds.

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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