Heritage Insurance (NYSE:HRTG) Stock Price Down 18.6% - Should You Sell?

Key Points

• Heritage Insurance's stock price fell 18.6%, trading as low as $17.64, significantly dropping from its previous close of $21.66.
• Analysts have upgraded Heritage Insurance, with Piper Sandler raising the target price from $19.00 to $28.00 and Truist Financial increasing it from $20.00 to $30.00.
• The company reported $1.55 EPS for the last quarter, surpassing estimates, but with revenue falling short at $208.04 million against predictions of $212.12 million.

Shares of Heritage Insurance Holdings, Inc. (NYSE:HRTG - Get Free Report) dropped 18.6% on Wednesday . The company traded as low as $18.09 and last traded at $17.64. Approximately 278,946 shares changed hands during trading, a decline of 20% from the average daily volume of 349,923 shares. The stock had previously closed at $21.66.

Analyst Upgrades and Downgrades

HRTG has been the topic of a number of recent research reports. Piper Sandler upped their target price on shares of Heritage Insurance from $19.00 to $28.00 and gave the stock an "overweight" rating in a research note on Thursday, May 8th. Truist Financial upped their target price on shares of Heritage Insurance from $20.00 to $30.00 and gave the stock a "buy" rating in a research note on Thursday, May 8th. Finally, Wall Street Zen upgraded shares of Heritage Insurance from a "buy" rating to a "strong-buy" rating in a research note on Tuesday, May 13th.

Heritage Insurance Price Performance

The company has a market capitalization of $594.85 million, a PE ratio of 7.52 and a beta of 1.05. The company has a debt-to-equity ratio of 0.29, a current ratio of 0.78 and a quick ratio of 0.78. The company's 50 day simple moving average is $22.60 and its 200 day simple moving average is $18.07.

Heritage Insurance (NYSE:HRTG - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The insurance provider reported $1.55 EPS for the quarter, beating the consensus estimate of $1.03 by $0.52. The company had revenue of $208.04 million for the quarter, compared to analyst estimates of $212.12 million. Heritage Insurance had a net margin of 9.29% and a return on equity of 26.95%. As a group, sell-side analysts predict that Heritage Insurance Holdings, Inc. will post 1.86 earnings per share for the current year.

Insider Activity

In related news, Director Panagiotis Apostolou sold 25,000 shares of the stock in a transaction on Friday, May 9th. The stock was sold at an average price of $25.40, for a total transaction of $635,000.00. Following the completion of the sale, the director directly owned 164,719 shares of the company's stock, valued at $4,183,862.60. This trade represents a 13.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 14.00% of the company's stock.

Institutional Investors Weigh In On Heritage Insurance

Several hedge funds have recently modified their holdings of the stock. Nisa Investment Advisors LLC lifted its holdings in shares of Heritage Insurance by 2,413.6% during the second quarter. Nisa Investment Advisors LLC now owns 1,106 shares of the insurance provider's stock worth $28,000 after purchasing an additional 1,062 shares during the period. AlphaQuest LLC boosted its position in shares of Heritage Insurance by 252.3% during the 2nd quarter. AlphaQuest LLC now owns 3,259 shares of the insurance provider's stock worth $81,000 after purchasing an additional 2,334 shares in the last quarter. Moran Wealth Management LLC purchased a new stake in shares of Heritage Insurance during the 2nd quarter worth $257,000. CWM LLC boosted its position in shares of Heritage Insurance by 44.7% during the 2nd quarter. CWM LLC now owns 14,404 shares of the insurance provider's stock worth $359,000 after purchasing an additional 4,453 shares in the last quarter. Finally, USA Financial Formulas purchased a new stake in shares of Heritage Insurance during the 2nd quarter worth $25,000. 59.03% of the stock is owned by institutional investors and hedge funds.

About Heritage Insurance

Heritage Insurance Holdings, Inc, through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential insurance in Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia; commercial residential insurance for properties in Florida, New Jersey, and New York; and licensed in the state of Pennsylvania, as well as personal residential and wind-only property insurance.

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