HCI Group (NYSE:HCI) Posts Quarterly Earnings Results, Beats Estimates By $0.19 EPS

HCI Group (NYSE:HCI) posted its quarterly earnings data on Wednesday. The insurance provider reported $5.45 earnings per share for the quarter, beating the consensus estimate of $5.26 by $0.19, FiscalAI reports. HCI Group had a net margin of 33.19% and a return on equity of 36.34%. The company had revenue of $242.88 million during the quarter, compared to analyst estimates of $245.09 million.

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

• HCI reported a record Q1 — pre-tax income rose 15% to $115 million and diluted EPS was $5.45, with total revenue up ~12% helped by higher investment and Exzeo-related other income.
• Management reiterated a through-cycle combined ratio target of 60% ±5%; the company posted 57% for FY2025 and again in Q1, highlighting strong underwriting and low claims frequency.
• The balance sheet is materially stronger — shareholder equity doubled to over $1 billion, ~$2 billion in cash/fixed-term securities, book value ≈ $85 (pro forma ≈ $145 including Exzeo/real estate), low debt (6%), and an $80 million buyback program with ~$37.5 million deployed (239,000 shares).
• HCI licensed a second reinsurer, Fortex Reinsurance (Cayman) to add reinsurance flexibility alongside Claddaugh (Bermuda) and is finalizing its June 1 reinsurance placements as the market softens; specifics will be announced when complete.
• Management is pursuing 2–3 potential Exzeo-like, insurance-related growth initiatives, advancing an E&S surplus-lines effort, and remaining opportunistic on M&A (preferably post-storm), though outcomes and timing are uncertain.

HCI Group Trading Down 0.8%

HCI stock traded down $1.17 during mid-day trading on Thursday, reaching $152.74. 263,729 shares of the stock traded hands, compared to its average volume of 165,168. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.03. HCI Group has a 52-week low of $136.37 and a 52-week high of $210.50. The company has a market cap of $1.96 billion, a P/E ratio of 6.73 and a beta of 1.09. The stock’s fifty day moving average is $158.30 and its 200-day moving average is $171.10.

HCI Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Shareholders of record on Friday, May 15th will be paid a dividend of $0.40 per share. The ex-dividend date of this dividend is Friday, May 15th. This represents a $1.60 dividend on an annualized basis and a yield of 1.0%. HCI Group’s dividend payout ratio is currently 7.05%.

HCI Group News Summary

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

• Positive Sentiment: Q1 EPS and profitability beat expectations — HCI reported Q1 diluted EPS of $5.45, higher net income and pre-tax income versus last year, and strong margins/ROE, which supports valuation given solid underwriting performance. HCI Group Reports First Quarter 2026 Results
• Positive Sentiment: Expanded reinsurance flexibility and aggressive combined-ratio target — HCI is working with Fortex Re and is targeting a 60% combined ratio, signaling management is focused on improving underwriting economics long term. HCI targets 60% combined ratio as it expands reinsurance flexibility with Fortex Re and continues $80M buyback
• Positive Sentiment: Continued share buybacks — Management is accelerating buybacks (part of an $80M program) alongside peers, which supports EPS and signals confidence in the balance sheet. Horizon, HCI ramp up buybacks amid valuation gaps
• Neutral Sentiment: Dividend and capital-allocation scrutiny — Commentary and analysis highlight management choices between dividends and buybacks; this is relevant to yield-seeking investors but not an immediate earnings driver. Does HCI Group’s (HCI) New Dividend Level Reveal Its True Capital Allocation Priorities?
• Negative Sentiment: Revenue slightly missed estimates — Q1 revenue came in a bit below analyst expectations, which may have prompted profit-taking despite the EPS beat and stronger margins. HCI Group (NYSE:HCI) Reports Sales Below Analyst Estimates In Q1 CY2026 Earnings

Institutional Trading of HCI Group

Hedge funds have recently bought and sold shares of the company. CenterBook Partners LP purchased a new stake in HCI Group during the fourth quarter valued at about $392,000. iSAM Funds UK Ltd purchased a new stake in HCI Group during the third quarter valued at about $314,000. Squarepoint Ops LLC purchased a new stake in HCI Group during the fourth quarter valued at about $300,000. EntryPoint Capital LLC purchased a new stake in shares of HCI Group in the fourth quarter worth approximately $294,000. Finally, Verdad Advisers LP purchased a new stake in shares of HCI Group in the fourth quarter worth approximately $264,000. 86.99% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on HCI shares. Weiss Ratings lowered shares of HCI Group from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, April 21st. Wall Street Zen upgraded shares of HCI Group from a “buy” rating to a “strong-buy” rating in a research report on Sunday. Zacks Research upgraded shares of HCI Group from a “hold” rating to a “strong-buy” rating in a research report on Friday, February 27th. Finally, Citigroup restated a “market outperform” rating on shares of HCI Group in a research report on Friday, January 16th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $231.67.

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.