HCI Group (NYSE:HCI) Announces Quarterly Earnings Results

HCI Group (NYSE:HCI) announced its earnings results on Wednesday. The insurance provider reported $5.45 EPS for the quarter, beating analysts’ consensus estimates of $5.26 by $0.19, FiscalAI reports. The company had revenue of $242.88 million during the quarter, compared to the consensus estimate of $245.09 million. HCI Group had a return on equity of 33.04% and a net margin of 32.64%.

Here are the key takeaways from HCI Group’s conference call:

• HCI reported a record Q1 — pre-tax income rose 15% to $115 million and diluted EPS was $5.45, with total revenue up ~12% helped by higher investment and Exzeo-related other income.
• Management reiterated a through-cycle combined ratio target of 60% ±5%; the company posted 57% for FY2025 and again in Q1, highlighting strong underwriting and low claims frequency.
• The balance sheet is materially stronger — shareholder equity doubled to over $1 billion, ~$2 billion in cash/fixed-term securities, book value ≈ $85 (pro forma ≈ $145 including Exzeo/real estate), low debt (6%), and an $80 million buyback program with ~$37.5 million deployed (239,000 shares).
• HCI licensed a second reinsurer, Fortex Reinsurance (Cayman) to add reinsurance flexibility alongside Claddaugh (Bermuda) and is finalizing its June 1 reinsurance placements as the market softens; specifics will be announced when complete.
• Management is pursuing 2–3 potential Exzeo-like, insurance-related growth initiatives, advancing an E&S surplus-lines effort, and remaining opportunistic on M&A (preferably post-storm), though outcomes and timing are uncertain.

HCI Group Stock Up 0.2%

Shares of NYSE:HCI traded up $0.33 on Friday, hitting $153.15. 84,068 shares of the company traded hands, compared to its average volume of 164,178. HCI Group has a 52 week low of $136.37 and a 52 week high of $210.50. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 0.03. The stock has a 50 day simple moving average of $158.30 and a 200-day simple moving average of $171.10. The company has a market cap of $1.97 billion, a PE ratio of 6.68 and a beta of 1.09.

HCI Group Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Friday, May 15th will be issued a dividend of $0.40 per share. The ex-dividend date is Friday, May 15th. This represents a $1.60 annualized dividend and a dividend yield of 1.0%. HCI Group’s dividend payout ratio (DPR) is presently 7.02%.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on HCI shares. Weiss Ratings downgraded HCI Group from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, April 21st. Citigroup restated a “market outperform” rating on shares of HCI Group in a report on Friday, January 16th. Zacks Research upgraded HCI Group from a “hold” rating to a “strong-buy” rating in a report on Friday, February 27th. Finally, Wall Street Zen upgraded HCI Group from a “buy” rating to a “strong-buy” rating in a report on Sunday, May 3rd. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, HCI Group has an average rating of “Moderate Buy” and a consensus price target of $231.67.

Hedge Funds Weigh In On HCI Group

Several institutional investors and hedge funds have recently modified their holdings of the stock. Invesco Ltd. increased its holdings in shares of HCI Group by 14.1% during the fourth quarter. Invesco Ltd. now owns 145,086 shares of the insurance provider’s stock valued at $27,812,000 after acquiring an additional 17,883 shares in the last quarter. Axxcess Wealth Management LLC increased its holdings in shares of HCI Group by 30.5% during the fourth quarter. Axxcess Wealth Management LLC now owns 14,526 shares of the insurance provider’s stock valued at $2,784,000 after acquiring an additional 3,398 shares in the last quarter. Mercer Global Advisors Inc. ADV increased its holdings in shares of HCI Group by 0.9% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 11,253 shares of the insurance provider’s stock valued at $2,157,000 after acquiring an additional 98 shares in the last quarter. Summit Global Investments bought a new position in shares of HCI Group during the fourth quarter valued at $252,000. Finally, State of Tennessee Department of Treasury increased its holdings in shares of HCI Group by 18.9% during the fourth quarter. State of Tennessee Department of Treasury now owns 6,310 shares of the insurance provider’s stock valued at $1,210,000 after acquiring an additional 1,001 shares in the last quarter. 86.99% of the stock is currently owned by institutional investors.

HCI Group Company Profile

HCI Group, Inc (NYSE: HCI) is a holding company whose principal business is the underwriting and issuance of property and casualty insurance through its insurance subsidiaries. Headquartered in Jacksonville, Florida, the company focuses primarily on personal-line insurance products, writing homeowners, condominium, renters and mobile home policies. HCI Group also offers wind-only and flood coverage in coastal regions across the state, providing tailored solutions to both coastal and non-coastal communities.

The company distributes its insurance products through a network of independent agents and brokers, leveraging local market expertise to assess risk and deliver personalized service.