HCI Group (NYSE:HCI) Posts Earnings Results, Beats Expectations By $0.56 EPS

HCI Group (NYSE:HCI) issued its earnings results on Thursday. The insurance provider reported $5.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.04 by $0.56, Zacks reports. HCI Group had a net margin of 32.60% and a return on equity of 29.68%. The firm had revenue of $246.65 million for the quarter, compared to analysts’ expectations of $247.43 million.

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

• Strong quarterly results: Pre-tax income rose 18% year over year to more than $110 million, diluted EPS increased to $5.60, and the 61% combined ratio remained within management’s targeted 60%–65% range.
• Reinsurance costs are expected to decline materially. The 2026–2027 catastrophe programs provide more coverage while reducing ceded premiums by more than 10%, representing over $10 million in quarterly savings.
• HCI is developing new sources of policy growth in a softer market, including CORE’s pivot to residential HO-3 policies, which is generating approximately $6 million of monthly new business, and a new Geico distribution relationship that began contributing in the third quarter.
• The balance sheet remains strong, with more than $2 billion in cash and investments, over $1 billion in stockholders’ equity, debt-to-capital below 6%, and book value per share of $86.60. The company also completed an $80 million buyback, repurchasing approximately 4% of its outstanding shares.
• Management emphasized that market conditions are softening and competition is increasing, while potential expansion into California remains dependent on timing and the future rate environment; no new share-repurchase authorization is currently active.

HCI Group Stock Up 4.2%

HCI Group stock traded up $7.62 during mid-day trading on Friday, hitting $188.51. The company had a trading volume of 277,176 shares, compared to its average volume of 156,931. HCI Group has a 12 month low of $137.81 and a 12 month high of $210.50. The company has a market capitalization of $2.41 billion, a PE ratio of 8.13 and a beta of 1.04. The stock’s 50 day moving average price is $172.58 and its two-hundred day moving average price is $163.32. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 0.03.

HCI Group Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Friday, August 21st will be paid a dividend of $0.40 per share. The ex-dividend date is Friday, August 21st. This represents a $1.60 dividend on an annualized basis and a yield of 0.8%. HCI Group’s payout ratio is presently 6.90%.

Hedge Funds Weigh In On HCI Group

Several large investors have recently modified their holdings of the stock. Freestone Grove Partners LP lifted its position in HCI Group by 353.6% in the 4th quarter. Freestone Grove Partners LP now owns 275,108 shares of the insurance provider’s stock valued at $52,735,000 after acquiring an additional 214,464 shares in the last quarter. Danske Bank A S purchased a new stake in HCI Group during the 3rd quarter valued at $19,256,000. Jacobs Levy Equity Management Inc. increased its holdings in shares of HCI Group by 129.1% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 125,399 shares of the insurance provider’s stock worth $24,038,000 after purchasing an additional 70,662 shares in the last quarter. Balyasny Asset Management L.P. increased its holdings in shares of HCI Group by 46.8% in the 2nd quarter. Balyasny Asset Management L.P. now owns 185,430 shares of the insurance provider’s stock worth $28,222,000 after purchasing an additional 59,134 shares in the last quarter. Finally, Invesco Ltd. raised its stake in shares of HCI Group by 85.6% in the third quarter. Invesco Ltd. now owns 127,203 shares of the insurance provider’s stock worth $24,414,000 after purchasing an additional 58,663 shares during the last quarter. Hedge funds and other institutional investors own 86.99% of the company’s stock.

Analyst Ratings Changes

A number of brokerages have issued reports on HCI. Zacks Research lowered shares of HCI Group from a “strong-buy” rating to a “hold” rating in a report on Friday, July 31st. Weiss Ratings upgraded HCI Group from a “buy (b-)” rating to a “buy (b)” rating in a report on Tuesday, July 28th. Citizens Jmp increased their price objective on HCI Group from $255.00 to $265.00 and gave the stock a “market outperform” rating in a report on Friday. Wall Street Zen cut HCI Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 11th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of HCI Group in a research note on Friday. Five analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $241.67.

More HCI Group News

Here are the key news stories impacting HCI Group this week:

• Positive Sentiment: HCI reported second-quarter earnings of $5.60 per share, exceeding analyst estimates of $5.04 and rising from $5.18 a year earlier. The company also posted a 30.88% return on equity and a 32.64% net margin, highlighting strong profitability. HCI Group Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company outlined more than $10 million in expected quarterly reinsurance savings as GEICO begins selling a new product. If realized, the savings could lower HCI’s insurance costs and improve future earnings. HCI outlines over $10M per quarter reinsurance savings
• Positive Sentiment: Citizens JMP raised its HCI price target from $255 to $265 and maintained a “market outperform” rating, signaling continued analyst confidence in the company’s outlook. Benzinga analyst price target report
• Neutral Sentiment: Second-quarter revenue was $246.65 million. While earnings exceeded expectations, revenue was slightly below the $247.43 million consensus estimate, making the results stronger on profitability than on sales growth. HCI Group Q2 Earnings Snapshot

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.