American Coastal Insurance (NASDAQ:ACIC) Announces Quarterly Earnings Results

American Coastal Insurance (NASDAQ:ACIC) issued its quarterly earnings data on Thursday. The company reported $0.42 EPS for the quarter, missing the consensus estimate of $0.47 by ($0.05), FiscalAI reports. The company had revenue of $70.70 million during the quarter. American Coastal Insurance had a return on equity of 27.95% and a net margin of 30.31%.

Here are the key takeaways from American Coastal Insurance’s conference call:

• Strong underwriting performance continued: Q3 combined ratio was 64.7%, generating core return on equity above 24%, while account retention remained near 90% and policies in force grew approximately 7% year to date.
• Soft commercial property market conditions pressured results, with core income falling $10.1 million year over year and the underlying combined ratio worsening to 68.4% from 57.8%; management also indicated average rates remain under downward pressure.
• E&S expansion is advancing: ACES Specialty is now licensed, and American Coastal expects to bind its first E&S policies around the end of hurricane season using third-party carriers initially, with potential fee income and broader growth through Skyway Underwriters beginning in 2027.
• The company reported strong liquidity and excess capital, including a 15.5% increase in book value per share since year-end, and said it may declare a special dividend later this year if fourth-quarter catastrophe losses remain limited.
• Management did not provide 2027 guidance, but expects revenue growth could be possible even if rates decline further, supported by E&S expansion and new capacity partnerships; it emphasized disciplined underwriting over top-line growth.

American Coastal Insurance Stock Up 0.6%

Shares of American Coastal Insurance stock opened at $10.93 on Friday. The company has a 50-day simple moving average of $9.78 and a two-hundred day simple moving average of $10.67. The stock has a market capitalization of $516.66 million, a PE ratio of 5.44 and a beta of -0.51. American Coastal Insurance has a 52-week low of $9.01 and a 52-week high of $13.06. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.88 and a current ratio of 0.88.

Insider Activity at American Coastal Insurance

In other American Coastal Insurance news, insider Brooke Adler sold 21,196 shares of the stock in a transaction on Thursday, September 24th. The stock was sold at an average price of $9.06, for a total transaction of $192,035.76. Following the sale, the insider directly owned 100,175 shares in the company, valued at approximately $907,585.50. This trade represents a 17.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Bennett Bradford Martz bought 10,000 shares of the stock in a transaction on Tuesday, September 22nd. The shares were bought at an average price of $9.15 per share, for a total transaction of $91,500.00. Following the purchase, the chief executive officer directly owned 444,611 shares in the company, valued at approximately $4,068,190.65. This trade represents a 2.30% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 49.20% of the company’s stock.

Institutional Trading of American Coastal Insurance

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in shares of American Coastal Insurance during the 2nd quarter valued at $25,309,000. Empyrean Capital Partners LP boosted its holdings in American Coastal Insurance by 19.8% in the 1st quarter. Empyrean Capital Partners LP now owns 1,126,987 shares of the company’s stock worth $12,679,000 after buying an additional 186,487 shares during the period. Dimensional Fund Advisors LP increased its stake in American Coastal Insurance by 19.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 750,108 shares of the company’s stock worth $8,439,000 after buying an additional 122,778 shares in the last quarter. Range Financial Group LLC bought a new stake in American Coastal Insurance during the first quarter valued at about $1,051,000. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new stake in American Coastal Insurance during the second quarter valued at about $1,361,000. Hedge funds and other institutional investors own 22.11% of the company’s stock.

Analysts Set New Price Targets

ACIC has been the topic of several research reports. Raymond James Financial restated an “outperform” rating and set a $13.00 price target on shares of American Coastal Insurance in a research report on Tuesday, August 11th. Weiss Ratings downgraded American Coastal Insurance from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, August 12th. Finally, Zacks Research raised American Coastal Insurance from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, October 14th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $13.00.

About American Coastal Insurance

American Coastal Insurance Corporation is a property and casualty insurance holding company based in Florida. Through its insurance subsidiaries, the company provides coverage for catastrophe-exposed residential properties, with a particular emphasis on commercial residential insurance such as condominium and homeowners’ association properties.

The company’s principal operating subsidiary is American Coastal Insurance Company, which focuses on property insurance in Florida and other coastal markets where specialized underwriting and catastrophe-risk management are important.