Heritage Insurance (NYSE:HRTG) Stock Price Down 6.5% - Should You Sell?

Key Points

• Heritage Insurance shares fell 6.5% to about $32.92 in light trading, despite remaining above their 50-day and 200-day moving averages.
• The company delivered a strong quarterly performance, reporting EPS of $2.05 versus the $1.25 estimate and revenue of $214.19 million, slightly ahead of expectations.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and a $36.50 target price, although insiders have sold $744,924 worth of stock over the past 90 days.

Heritage Insurance Holdings, Inc. (NYSE:HRTG - Get Free Report) shares traded down 6.5% during trading on Friday . The stock traded as low as $33.22 and last traded at $32.9160. Approximately 42,279 shares traded hands during mid-day trading, a decline of 89% from the average session volume of 372,387 shares. The stock had previously closed at $35.21.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings lowered shares of Heritage Insurance from a "buy (b)" rating to a "buy (b-)" rating in a report on Monday, May 11th. Wall Street Zen lowered shares of Heritage Insurance from a "buy" rating to a "hold" rating in a research note on Saturday, May 9th. Piper Sandler lifted their price objective on shares of Heritage Insurance from $27.00 to $31.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 15th. Truist Financial lifted their price objective on shares of Heritage Insurance from $36.00 to $42.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, Zacks Research raised shares of Heritage Insurance from a "strong sell" rating to a "hold" rating in a research note on Friday, July 10th. Three research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $36.50.

Heritage Insurance Price Performance

The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 0.15. The stock has a 50-day simple moving average of $25.84 and a 200 day simple moving average of $26.01. The stock has a market capitalization of $984.86 million, a price-to-earnings ratio of 4.62 and a beta of 0.89.

Heritage Insurance (NYSE:HRTG - Get Free Report) last issued its earnings results on Wednesday, August 5th. The insurance provider reported $2.05 earnings per share for the quarter, beating analysts' consensus estimates of $1.25 by $0.80. The company had revenue of $214.19 million for the quarter, compared to the consensus estimate of $212.71 million. Heritage Insurance had a return on equity of 44.15% and a net margin of 25.19%. On average, equities research analysts forecast that Heritage Insurance Holdings, Inc. will post 4.33 EPS for the current fiscal year.

Insider Buying and Selling

In other Heritage Insurance news, 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 trade represents a 8.71% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul L. Whiting purchased 16,000 shares of the stock in a transaction dated Tuesday, May 19th. The shares were bought at an average price of $23.56 per share, for a total transaction of $376,960.00. Following the completion of the acquisition, the director owned 103,126 shares in the company, valued at $2,429,648.56. This represents a 18.36% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have sold 27,600 shares of company stock worth $744,924 over the last ninety days. 9.20% of the stock is currently owned by insiders.

Institutional Trading of Heritage Insurance

Several hedge funds and other institutional investors have recently modified their holdings of the company. Advisory Services Network LLC purchased a new position in Heritage Insurance in the third quarter valued at about $25,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Heritage Insurance during the 4th quarter worth about $31,000. Royal Bank of Canada lifted its holdings in shares of Heritage Insurance by 72.6% during the 4th quarter. Royal Bank of Canada now owns 1,182 shares of the insurance provider's stock valued at $35,000 after buying an additional 497 shares during the last quarter. Optiver Holding B.V. lifted its holdings in shares of Heritage Insurance by 510.0% during 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 last quarter. Finally, Harbour Investments Inc. bought a new stake in shares of Heritage Insurance in the 4th quarter valued at approximately $50,000. 59.03% of the stock is currently owned by hedge funds and other institutional investors.

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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