Neptune Insurance (NYSE:NP) Stock Price Up 8.6% - Still a Buy?

Key Points

• Neptune Insurance shares rose 8.6% to about $34.63, with trading volume 48% above average. The stock’s market capitalization is approximately $4.84 billion, while its P/E ratio stands at 139.19.
• The company exceeded quarterly expectations, reporting $0.15 in earnings per share versus a $0.14 estimate and revenue of $55.87 million versus $52.38 million expected. Analysts are divided, resulting in a consensus “Hold” rating and an average price target of $30.61.
• Insiders sold roughly 11.3 million shares worth $298.8 million over the past 90 days, although insiders still own 74.26% of the company. Major institutional investors, including Bregal Sagemount, T. Rowe Price, and Vanguard, also established positions.

Neptune Insurance Holdings Inc. (NYSE:NP - Get Free Report)'s share price rose 8.6% on Wednesday . The company traded as high as $34.58 and last traded at $34.6250. Approximately 906,003 shares were traded during mid-day trading, an increase of 48% from the average daily volume of 610,769 shares. The stock had previously closed at $31.88.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $33.00 target price on shares of Neptune Insurance in a research report on Wednesday, July 22nd. Bank of America lifted their price target on Neptune Insurance from $23.00 to $26.00 and gave the company a "neutral" rating in a research report on Tuesday, April 14th. Evercore reissued an "outperform" rating and set a $36.00 price objective on shares of Neptune Insurance in a report on Wednesday, July 22nd. Keefe, Bruyette & Woods cut their target price on Neptune Insurance from $34.00 to $33.00 and set a "market perform" rating for the company in a research note on Friday, July 24th. Finally, Raymond James Financial reaffirmed an "outperform" rating on shares of Neptune Insurance in a report on Monday, April 27th. Eight research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $30.61.

Neptune Insurance Stock Performance

The company's 50 day simple moving average is $29.30 and its 200-day simple moving average is $26.01. The firm has a market capitalization of $4.84 billion and a PE ratio of 139.19.

Neptune Insurance (NYSE:NP - Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The company reported $0.15 EPS for the quarter, beating analysts' consensus estimates of $0.14 by $0.01. The firm had revenue of $55.87 million during the quarter, compared to analyst estimates of $52.38 million. Neptune Insurance had a net margin of 21.45% and a negative return on equity of 18.77%. On average, equities research analysts forecast that Neptune Insurance Holdings Inc. will post 0.4 earnings per share for the current fiscal year.

Insider Activity

In other Neptune Insurance news, major shareholder Vii L.P. Ftv sold 5,252,044 shares of the company's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $26.40, for a total value of $138,653,961.60. Following the transaction, the insider directly owned 17,098,587 shares in the company, valued at $451,402,696.80. This represents a 23.50% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Hold 101 Lp Bsiv sold 4,589,351 shares of the firm's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $26.40, for a total value of $121,158,866.40. Following the completion of the sale, the insider directly owned 14,941,121 shares in the company, valued at approximately $394,445,594.40. The trade was a 23.50% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 11,317,604 shares of company stock valued at $298,784,746. 74.26% of the stock is owned by company insiders.

Institutional Investors Weigh In On Neptune Insurance

Several hedge funds have recently bought and sold shares of the stock. Bregal Sagemount IV General Partner Jersey Ltd bought a new position in shares of Neptune Insurance in the 4th quarter worth $569,509,000. T. Rowe Price Investment Management Inc. purchased a new position in Neptune Insurance in the fourth quarter worth $133,488,000. Vanguard Group Inc. bought a new position in Neptune Insurance in the fourth quarter valued at $47,063,000. Capital World Investors purchased a new stake in Neptune Insurance during the fourth quarter valued at about $32,091,000. Finally, Balyasny Asset Management L.P. bought a new stake in Neptune Insurance during the fourth quarter worth about $29,051,000.

Neptune Insurance Company Profile

Our mission is to create a smarter, more resilient insurance platform powered by AI, data science, and technology, enabling insurers to deploy capacity with confidence and delivering instant access to coverage for policyholders and agents. Neptune is a leading, high-growth, highly profitable, data-driven managing general agent that is revolutionizing the way homeowners and businesses protect against the growing risks of flooding. We offer a range of easy-to-purchase residential and commercial insurance products — including primary flood insurance, excess flood insurance, and parametric earthquake insurance — distributed through a nationwide network of agencies.

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