Hippo (NYSE:HIPO) Shares Gap Up - What's Next?

Key Points

• Hippo shares jumped: The stock opened at $29.37 versus a prior close of $27.76 and last traded near $29.42.
• Analysts remain broadly positive: Hippo has a consensus “Moderate Buy” rating and an average price target of $38.67, with recent upgrades and a new $38.00 target from B. Riley.
• Insiders have been selling: Executives sold 18,667 shares worth approximately $498,859 over the past three months, while institutional investors and hedge funds own 43.01% of the company.

Hippo Holdings Inc. (NYSE:HIPO - Get Free Report)'s share price gapped up before the market opened on Tuesday . The stock had previously closed at $27.76, but opened at $29.37. Hippo shares last traded at $29.42, with a volume of 9,654 shares trading hands.

Analyst Ratings Changes

Several equities research analysts have recently commented on HIPO shares. Keefe, Bruyette & Woods lifted their price target on shares of Hippo from $32.00 to $33.00 and gave the stock a "market perform" rating in a research report on Wednesday, July 8th. Texas Capital upgraded shares of Hippo to a "strong-buy" rating in a report on Tuesday, June 9th. B. Riley Financial began coverage on shares of Hippo in a research note on Friday, April 17th. They issued a "buy" rating and a $38.00 price objective on the stock. Finally, Weiss Ratings raised shares of Hippo from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, May 4th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $38.67.

Hippo Price Performance

The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.99 and a current ratio of 0.99. The company has a market capitalization of $775.74 million, a price-to-earnings ratio of 6.90 and a beta of 1.49. The company has a 50-day moving average price of $26.91 and a 200-day moving average price of $27.60.

Hippo (NYSE:HIPO - Get Free Report) last announced its quarterly earnings results on Wednesday, March 4th. The company reported $0.67 earnings per share for the quarter. The business had revenue of $120.40 million for the quarter. Hippo had a net margin of 23.45% and a return on equity of 12.17%. On average, equities research analysts expect that Hippo Holdings Inc. will post 0.95 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Richard Mccathron sold 5,000 shares of Hippo stock in a transaction on Monday, May 11th. The shares were sold at an average price of $27.10, for a total transaction of $135,500.00. Following the transaction, the chief executive officer directly owned 604,212 shares of the company's stock, valued at $16,374,145.20. This trade represents a 0.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Torben Ostergaard sold 3,667 shares of the firm's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $26.10, for a total value of $95,708.70. Following the sale, the chief executive officer directly owned 65,673 shares in the company, valued at $1,714,065.30. The trade was a 5.29% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 18,667 shares of company stock worth $498,859. Insiders own 4.48% of the company's stock.

Institutional Investors Weigh In On Hippo

Hedge funds have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd bought a new stake in Hippo during the 4th quarter worth approximately $26,000. Altshuler Shaham Ltd lifted its stake in Hippo by 270.4% in the fourth quarter. Altshuler Shaham Ltd now owns 1,000 shares of the company's stock valued at $30,000 after buying an additional 730 shares in the last quarter. Quantbot Technologies LP bought a new position in Hippo in the second quarter valued at approximately $33,000. Torren Management LLC acquired a new position in shares of Hippo in the fourth quarter valued at approximately $55,000. Finally, Kemnay Advisory Services Inc. acquired a new position in shares of Hippo in the fourth quarter valued at approximately $56,000. Institutional investors and hedge funds own 43.01% of the company's stock.

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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