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

HCI Group (NYSE:HCI) released its earnings results on Thursday. The insurance provider reported $5.60 EPS for the quarter, beating the consensus estimate of $5.04 by $0.56, Zacks reports. The business had revenue of $246.65 million during the quarter, compared to analyst estimates of $247.43 million. HCI Group had a net margin of 32.60% and a return on equity of 29.68%.

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%

Shares of HCI Group stock traded up $7.62 during trading on Friday, hitting $188.51. 277,176 shares of the stock traded hands, compared to its average volume of 156,931. The stock has a market cap of $2.41 billion, a P/E ratio of 8.13 and a beta of 1.04. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.82 and a current ratio of 0.82. HCI Group has a twelve month low of $137.81 and a twelve month high of $210.50. The company has a fifty day moving average price of $172.58 and a two-hundred day moving average price of $163.32.

HCI Group Announces Dividend

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

Institutional Trading of HCI Group

Several large investors have recently added to or reduced their stakes in the business. Invesco Ltd. lifted its stake in shares of HCI Group by 14.1% in the 4th quarter. Invesco Ltd. now owns 145,086 shares of the insurance provider’s stock valued at $27,812,000 after purchasing an additional 17,883 shares during the last quarter. Axxcess Wealth Management LLC lifted its holdings in HCI Group by 30.5% in the 4th quarter. Axxcess Wealth Management LLC now owns 14,526 shares of the insurance provider’s stock worth $2,784,000 after purchasing an additional 3,398 shares during the last quarter. Mercer Global Advisors Inc. ADV boosted its position in 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 worth $2,157,000 after purchasing an additional 98 shares during the period. Summit Global Investments bought a new stake in HCI Group during the fourth quarter worth approximately $252,000. Finally, State of Tennessee Department of Treasury grew its holdings in 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 purchasing an additional 1,001 shares during the last quarter. 86.99% of the stock is owned by institutional investors.

Key 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

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. Wall Street Zen lowered HCI Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 11th. Citizens Jmp raised their target price on shares of HCI Group from $255.00 to $265.00 and gave the stock a “market outperform” rating in a report on Friday. Weiss Ratings raised shares of HCI Group from a “buy (b-)” rating to a “buy (b)” rating in a research report on Tuesday, July 28th. Zacks Research downgraded shares of HCI Group from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 31st. Finally, Cantor Fitzgerald started coverage on shares of HCI Group in a research note on Thursday, July 9th. They set an “overweight” rating and a $225.00 target price on the stock. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, HCI Group currently has a consensus rating of “Moderate Buy” and a consensus target price of $241.67.

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.