Hippo (NYSE:HIPO) Stock Price Up 9.8% After Earnings Beat

Key Points

• Hippo Holdings Inc. shares rose 9.8% after reporting quarterly earnings of $0.65 per share, significantly surpassing analysts' expectations of ($0.65).
• Insider trading revealed CEO Torben Ostergaard sold 2,444 shares for approximately $73,197, reducing his stake in the company.
• Hedge funds have increased their positions in Hippo, with Vanguard Group owning over 1 million shares following a 2.4% increase in their holdings.

Hippo Holdings Inc. (NYSE:HIPO - Get Free Report)'s share price was up 9.8% during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $30.29 and last traded at $30.37. Approximately 88,904 shares were traded during trading, a decline of 58% from the average daily volume of 210,691 shares. The stock had previously closed at $27.66.

The company reported $0.65 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.65) by $1.30. The company had revenue of $117.30 million for the quarter, compared to analysts' expectations of $116.00 million. Hippo had a negative return on equity of 12.08% and a negative net margin of 2.52%.

Wall Street Analyst Weigh In

HIPO has been the subject of several recent research reports. B. Riley lifted their price objective on Hippo from $35.00 to $41.00 and gave the company a "buy" rating in a report on Thursday. Keefe, Bruyette & Woods upped their price target on shares of Hippo from $24.00 to $26.00 and gave the stock a "market perform" rating in a research report on Tuesday, April 22nd. JMP Securities boosted their price objective on shares of Hippo from $35.00 to $40.00 and gave the stock a "market outperform" rating in a research note on Thursday. Finally, Jefferies Financial Group dropped their target price on Hippo from $43.00 to $30.00 and set a "buy" rating on the stock in a research report on Friday, April 11th.

Insider Activity

In related news, CEO Torben Ostergaard sold 2,444 shares of the stock in a transaction that occurred on Thursday, June 12th. The shares were sold at an average price of $29.95, for a total value of $73,197.80. Following the transaction, the chief executive officer owned 64,349 shares in the company, valued at approximately $1,927,252.55. This represents a 3.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Len Fw Investor, Llc sold 514,309 shares of the company's stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $28.17, for a total transaction of $14,488,084.53. Following the completion of the sale, the insider directly owned 2,476,418 shares in the company, valued at $69,760,695.06. This trade represents a 17.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 521,642 shares of company stock valued at $14,681,601. Insiders own 10.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Invesco Ltd. increased its holdings in Hippo by 1.5% in the fourth quarter. Invesco Ltd. now owns 35,866 shares of the company's stock valued at $960,000 after buying an additional 539 shares in the last quarter. AQR Capital Management LLC increased its stake in shares of Hippo by 8.3% in the 1st quarter. AQR Capital Management LLC now owns 16,193 shares of the company's stock valued at $414,000 after purchasing an additional 1,236 shares in the last quarter. Public Employees Retirement System of Ohio raised its holdings in Hippo by 13.5% in the 4th quarter. Public Employees Retirement System of Ohio now owns 11,736 shares of the company's stock worth $314,000 after purchasing an additional 1,400 shares during the period. Price T Rowe Associates Inc. MD boosted its position in Hippo by 5.7% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 26,768 shares of the company's stock worth $717,000 after purchasing an additional 1,434 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its holdings in Hippo by 1.0% in the first quarter. Charles Schwab Investment Management Inc. now owns 154,130 shares of the company's stock valued at $3,940,000 after purchasing an additional 1,466 shares during the period. 43.01% of the stock is currently owned by institutional investors and hedge funds.

Hippo Price Performance

The company has a market capitalization of $740.71 million, a price-to-earnings ratio of -60.16 and a beta of 1.53. The firm has a fifty day simple moving average of $27.25 and a 200 day simple moving average of $26.31.

Hippo Company Profile

Hippo Holdings Inc provides property and casualty insurance products to individuals and business customers primarily in the United States. The company operates through three segments: Services, Insurance-as-a-Service, and Hippo Home Insurance Program. Its insurance products include homeowners' insurance against risks of fire, wind, and theft, as well as other personal lines policies from third party carriers; and personal and commercial, as well as home, auto, cyber, small business, life, specialty lines, and other insurance products.