Heritage Insurance (NYSE:HRTG) Shares Gap Down After Earnings Miss

Key Points

• Shares gapped down after Heritage missed expectations, reporting $1.19 EPS versus a $1.53 consensus and $212.66M in revenue versus $215.39M, with the stock opening at $24.44 after a $28.03 close and last trading near $21.32.
• Analyst sentiment remains positive with an average rating of "Buy" and an average price target of $39.00, including recent upgrades and Truist raising its target to $39.
• Insiders have been selling under Rule 10b5-1 plans (including the CEO and CAO); insiders own about 15.20% of shares while institutional investors own roughly 59%, with notable position increases by Millennium and JPMorgan.

Shares of Heritage Insurance Holdings, Inc. (NYSE:HRTG - Get Free Report) gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $28.03, but opened at $24.44. Heritage Insurance shares last traded at $21.3210, with a volume of 257,178 shares traded.

The insurance provider reported $1.19 EPS for the quarter, missing the consensus estimate of $1.53 by ($0.34). The company had revenue of $212.66 million during the quarter, compared to analysts' expectations of $215.39 million. Heritage Insurance had a return on equity of 47.28% and a net margin of 23.08%.

Analyst Upgrades and Downgrades

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

Insider Transactions at Heritage Insurance

In other news, CEO Ernie J. Garateix sold 8,334 shares of the company's stock in a transaction that occurred on Monday, April 20th. The stock was sold at an average price of $27.56, for a total transaction of $229,685.04. Following the completion of the transaction, the chief executive officer directly owned 1,060,955 shares of the company's stock, valued at $29,239,919.80. This represents a 0.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Sharon Binnun sold 9,200 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $25.72, for a total value of $236,624.00. Following the transaction, the chief accounting officer directly owned 133,188 shares of the company's stock, valued at approximately $3,425,595.36. The trade was a 6.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 130,918 shares of company stock valued at $3,446,606 in the last three months. 15.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of HRTG. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Heritage Insurance by 4.2% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,621 shares of the insurance provider's stock valued at $196,000 after buying an additional 546 shares in the last quarter. Millennium Management LLC lifted its stake in Heritage Insurance by 39.8% in the 1st quarter. Millennium Management LLC now owns 322,957 shares of the insurance provider's stock valued at $4,657,000 after buying an additional 91,982 shares in the last quarter. Empowered Funds LLC lifted its stake in Heritage Insurance by 8.4% in the 1st quarter. Empowered Funds LLC now owns 124,859 shares of the insurance provider's stock valued at $1,800,000 after buying an additional 9,728 shares in the last quarter. Strs Ohio purchased a new position in Heritage Insurance in the 1st quarter valued at about $127,000. Finally, JPMorgan Chase & Co. lifted its stake in Heritage Insurance by 1,078.7% in the 2nd quarter. JPMorgan Chase & Co. now owns 140,879 shares of the insurance provider's stock valued at $3,514,000 after buying an additional 128,927 shares in the last quarter. 59.03% of the stock is owned by hedge funds and other institutional investors.

Heritage Insurance Price Performance

The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.83 and a current ratio of 0.83. The stock's 50 day moving average is $27.37 and its two-hundred day moving average is $27.06. The stock has a market capitalization of $642.96 million, a PE ratio of 3.36 and a beta of 1.03.

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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