HCI Group (NYSE:HCI) Announces Quarterly Earnings Results

HCI Group (NYSE:HCI) issued its quarterly earnings data on Wednesday. The insurance provider reported $7.25 earnings per share for the quarter, topping analysts’ consensus estimates of $4.87 by $2.38, FiscalAI reports. HCI Group had a return on equity of 41.15% and a net margin of 33.19%.The firm had revenue of $246.24 million for the quarter, compared to analyst estimates of $232.36 million.

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

• Strong earnings and underwriting — Q4 pre-tax income was $144M ($429M full year) with diluted EPS of $7.25/Q4 and $22.72/year, and a normalized Q4 loss ratio of ~17.5% (combined ratio <45% reported, <60% normalized).
• Robust balance sheet and liquidity — Shareholders’ equity exceeded $1B (book value >$80/share, pro forma ~$140 including unrealized gains), consolidated cash >$1.2B, underwriter surplus >$500M and gross leverage only 2.5.
• Exio IPO and strategic tech stake — HCI owns ~82% of Exio (nearly $1.2B stake), which management positions as a competitive advantage for automation and AI-driven distribution/operations.
• Growth and M&A caution — Management sees acquisition opportunities but warns of a buyer–seller pricing disconnect (2025 may be a peak year) and notes results remain exposed to future hurricane/cat events.
• Shareholder returns and insider alignment — Company announced an $80M share repurchase program (expected to begin imminently) and the CEO personally exercised options to increase ownership.

HCI Group Price Performance

HCI Group stock traded up $4.52 during mid-day trading on Friday, hitting $174.72. The stock had a trading volume of 95,051 shares, compared to its average volume of 150,043. HCI Group has a one year low of $125.00 and a one year high of $210.50. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 0.04. The firm has a market capitalization of $2.26 billion, a P/E ratio of 7.71 and a beta of 1.21. The firm’s 50 day moving average is $170.54 and its 200 day moving average is $177.44.

HCI Group Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Friday, February 20th will be given a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Friday, February 20th. HCI Group’s dividend payout ratio is presently 7.05%.

Wall Street Analysts Forecast Growth

Several brokerages have commented on HCI. Truist Financial upped their price objective on shares of HCI Group from $190.00 to $235.00 and gave the stock a “buy” rating in a report on Friday, November 7th. Weiss Ratings reiterated a “buy (b)” rating on shares of HCI Group in a report on Monday, December 29th. Citizens Jmp lifted their price objective on HCI Group from $225.00 to $255.00 and gave the company a “market outperform” rating in a research note on Monday, November 10th. Oppenheimer cut HCI Group from an “outperform” rating to a “market perform” rating in a research note on Thursday, November 13th. Finally, Wall Street Zen upgraded shares of HCI Group from a “buy” rating to a “strong-buy” rating in a research note on Saturday, November 8th. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, HCI Group presently has a consensus rating of “Moderate Buy” and an average target price of $231.67.

Hedge Funds Weigh In On HCI Group

Hedge funds have recently modified their holdings of the stock. Transamerica Financial Advisors LLC grew its position in shares of HCI Group by 519.2% during the fourth quarter. Transamerica Financial Advisors LLC now owns 161 shares of the insurance provider’s stock valued at $31,000 after purchasing an additional 135 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in HCI Group by 557.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 217 shares of the insurance provider’s stock valued at $33,000 after buying an additional 184 shares in the last quarter. Meeder Asset Management Inc. purchased a new position in HCI Group during the 4th quarter valued at approximately $79,000. Kestra Advisory Services LLC bought a new stake in HCI Group in the 4th quarter worth approximately $103,000. Finally, State of Wyoming raised its holdings in shares of HCI Group by 52.6% during the 2nd quarter. State of Wyoming now owns 743 shares of the insurance provider’s stock worth $113,000 after acquiring an additional 256 shares in the last quarter. Hedge funds and other institutional investors own 86.99% of the company’s stock.

About HCI Group

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.