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

American Coastal Insurance (NASDAQ:ACIC) issued its quarterly earnings results on Wednesday. The company reported $0.33 earnings per share for the quarter, missing the consensus estimate of $0.42 by ($0.09), FiscalAI reports. American Coastal Insurance had a return on equity of 28.28% and a net margin of 30.31%.The business had revenue of $82.60 million for the quarter.

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

• Soft market conditions continued to pressure results: Gross written premiums declined 5.3% year over year, core income fell to $16.5 million, and the combined ratio increased to 74.3%. Full-year revenue guidance was reduced to $300 million-$320 million, with pricing pressure expected to persist into 2027.
• American Coastal lowered its first-event hurricane retention from $49 million to $23.5 million effective August 1, at an estimated cost of $8.4 million. Management said the move reduces catastrophe risk and improves the reliability of earnings and cash flows while maintaining unchanged full-year earnings guidance of $85 million-$100 million.
• The company repurchased nearly 1.4 million shares during the quarter and increased its remaining buyback authorization to approximately $30.6 million. Management also indicated that a special dividend remains likely if profitability and excess capital support it.
• Policies in force and total insured value increased roughly 3%-4% year over year, with second-quarter account retention around 85%, supporting the company’s claim that it is maintaining or growing its Florida commercial residential market leadership. However, average premiums are declining as competition intensifies.
• The multifamily and assisted-living expansion remains below expectations because the company lacks an AM Best rating, resulting in lost business and midterm cancellations. American Coastal expects to address the constraint through ACES Specialty or fronting arrangements, potentially enabling broader writing activity late in the fourth quarter.

American Coastal Insurance Stock Down 6.1%

Shares of American Coastal Insurance stock opened at $10.28 on Friday. American Coastal Insurance has a 52 week low of $9.72 and a 52 week high of $13.06. The stock’s 50-day simple moving average is $10.68 and its 200-day simple moving average is $11.04. The company has a market capitalization of $498.17 million, a price-to-earnings ratio of 5.11, a PEG ratio of 3.80 and a beta of -0.47.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the company. Wall Street Zen cut American Coastal Insurance from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Zacks Research upgraded American Coastal Insurance from a “strong sell” rating to a “hold” rating in a research report on Monday. Finally, Weiss Ratings downgraded American Coastal Insurance from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, July 23rd. Three research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company has an average rating of “Hold”.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Empyrean Capital Partners LP increased its holdings in shares of 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 last quarter. Range Financial Group LLC bought a new position in shares of American Coastal Insurance in the 1st quarter valued at about $1,051,000. Militia Capital Management LLC purchased a new position in American Coastal Insurance in the first quarter worth about $2,257,000. Arrowstreet Capital Limited Partnership grew its position in American Coastal Insurance by 433.8% in the first quarter. Arrowstreet Capital Limited Partnership now owns 317,891 shares of the company’s stock worth $3,576,000 after acquiring an additional 258,344 shares in the last quarter. Finally, Punch & Associates Investment Management Inc. increased its stake in American Coastal Insurance by 7.3% during the fourth quarter. Punch & Associates Investment Management Inc. now owns 776,400 shares of the company’s stock worth $9,806,000 after acquiring an additional 52,500 shares during the last quarter. Hedge funds and other institutional investors own 22.11% of the company’s stock.

American Coastal Insurance Company Profile

American Coastal Insurance Company (NASDAQ:ACIC) is a specialized property and casualty insurer focused on coastal residential and commercial lines across the Southeastern United States. Headquartered in St. Petersburg, Florida, the company underwrites policies designed to address windstorm and non-windstorm perils in areas exposed to hurricane risk. Since its founding in 2007, American Coastal has positioned itself to meet the insurance needs of homeowners, condominium associations, and small business owners operating near coastal zones.

Through a diversified portfolio of personal lines products, American Coastal offers homeowners insurance, dwelling fire, mobile home, condominium unitowners and renters policies.