Hippo (NYSE:HIPO) Issues Earnings Results, Beats Estimates By $0.44 EPS

Key Points

• Q1 EPS beat: Hippo reported adjusted EPS of $0.65, beating consensus by $0.44 and delivering GAAP net income of $7 million, indicating improved profitability.
• Revenue and guidance miss pressured stock: Q1 revenue of $121.5M missed estimates (~$130.7M) and FY2026 revenue guidance of ~$560–$570M was below Street expectations, sending the stock down about 6.9% and below its 200‑day moving average.
• Insider selling and mixed analyst views: Insiders sold ~21,705 shares in the last 90 days (insiders own ~10.8%), while analyst coverage is split with a "Moderate Buy" consensus and a $37.67 target price.

Hippo (NYSE:HIPO - Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $0.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.21 by $0.44, FiscalAI reports. Hippo had a negative return on equity of 2.24% and a net margin of 12.31%.The business had revenue of $121.50 million during the quarter, compared to analyst estimates of $130.68 million.

Hippo Stock Down 6.9%

Shares of NYSE HIPO traded down $1.96 during mid-day trading on Thursday, reaching $26.26. The company had a trading volume of 276,751 shares, compared to its average volume of 125,685. Hippo has a twelve month low of $19.92 and a twelve month high of $38.98. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.94 and a current ratio of 0.94. The stock has a market capitalization of $682.05 million, a PE ratio of 12.27 and a beta of 1.61. The stock's 50 day moving average is $26.98 and its 200-day moving average is $30.17.

Insiders Place Their Bets

In other Hippo news, CEO Richard Mccathron sold 5,000 shares of the business's stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $26.05, for a total value of $130,250.00. Following the completion of the sale, the chief executive officer owned 610,650 shares of the company's stock, valued at $15,907,432.50. The trade was a 0.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Torben Ostergaard sold 6,105 shares of the business's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $28.57, for a total value of $174,419.85. Following the completion of the sale, the chief executive officer directly owned 46,694 shares of the company's stock, valued at $1,334,047.58. This represents a 11.56% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 21,705 shares of company stock worth $597,934 over the last ninety days. 10.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Hippo

Several hedge funds and other institutional investors have recently made changes to their positions in HIPO. Graham Capital Management L.P. lifted its stake in shares of Hippo by 43.3% in the fourth quarter. Graham Capital Management L.P. now owns 9,231 shares of the company's stock valued at $278,000 after buying an additional 2,789 shares during the period. Intech Investment Management LLC lifted its stake in shares of Hippo by 14.2% in the fourth quarter. Intech Investment Management LLC now owns 9,097 shares of the company's stock valued at $274,000 after buying an additional 1,129 shares during the period. Janus Henderson Group PLC bought a new stake in shares of Hippo in the fourth quarter valued at about $262,000. Two Sigma Investments LP bought a new stake in shares of Hippo in the third quarter valued at about $234,000. Finally, EntryPoint Capital LLC bought a new stake in shares of Hippo in the fourth quarter valued at about $225,000. 43.01% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Hippo

Here are the key news stories impacting Hippo this week:

• Positive Sentiment: Q1 EPS and adjusted earnings beat expectations — Hippo reported adjusted EPS and adjusted net income that exceeded consensus, and GAAP net income of $7M for the quarter, signaling improved profitability. Hippo Reports First Quarter 2026 Financial Results
• Positive Sentiment: Analyst writeups highlight the beat — Zacks and other outlets noted Hippo topped EPS estimates materially versus last year’s loss, which supports a narrative of operational improvement. Hippo Holdings Inc. (HIPO) Q1 Earnings Top Estimates
• Neutral Sentiment: Investor materials / slides available — The company posted its earnings presentation and call materials for investors that provide detail on growth drivers and unit economics. Hippo Holdings Inc. 2026 Q1 - Results - Earnings Call Presentation
• Neutral Sentiment: Widespread unrelated media attention to “hippos” (Pablo Escobar animals) — Major outlets are covering offers to relocate/care for Escobar’s hippos; this creates headline noise and occasional search/PR confusion but has no material corporate impact. Indian Tycoon Offers Refuge to Pablo Escobar’s Condemned Hippos
• Negative Sentiment: Revenue miss — Q1 revenue (~$121.5M) came in below consensus (~$130.7M), suggesting top‑line pressure despite margin progress. View Press Release
• Negative Sentiment: Softer FY revenue guidance — Management set FY2026 revenue guidance roughly $560–$570M versus a Street consensus near $592.6M, raising concerns about growth trajectory and prompting re‑rating. Hippo Reports First Quarter 2026 Financial Results
• Negative Sentiment: Elevated trading volume and technical pressure — Volume spiked above average and the stock is below its 200‑day moving average, which can amplify downside as traders react to the mixed outlook. HIPO Stock Profile

Wall Street Analyst Weigh In

HIPO has been the subject of a number of research analyst reports. B. Riley Financial assumed coverage on Hippo in a research report on Friday, April 17th. They issued a "buy" rating and a $38.00 target price for the company. Weiss Ratings upgraded Hippo from a "sell (d-)" rating to a "hold (c-)" rating in a research report on Thursday, March 5th. Keefe, Bruyette & Woods cut their price objective on Hippo from $33.00 to $30.00 and set a "market perform" rating for the company in a research report on Tuesday, April 7th. Finally, Zacks Research upgraded Hippo to a "hold" rating in a research report on Tuesday, March 3rd. Three research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, Hippo has a consensus rating of "Moderate Buy" and a consensus target price of $37.67.

About Hippo

Hippo Enterprises Inc is a technology-driven home insurance company that offers modernized homeowners insurance products through a digital-first platform. Leveraging data analytics, artificial intelligence and smart home devices, the company designs tailored coverage plans intended to streamline the underwriting process and deliver more comprehensive protection for homeowners. Hippo's policies typically include standard dwelling coverage, personal property protection and liability insurance, along with optional add-ons such as water backup, home computer systems and equipment breakdown coverage.

Through its online portal and partner network of licensed insurance agents, Hippo provides policyholders with a range of services aimed at minimizing risk and preventing losses before they occur.

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