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

HCI Group (NYSE:HCI) released its quarterly earnings data on Thursday. The insurance provider reported $5.60 earnings per share for the quarter, topping analysts’ consensus estimates of $5.04 by $0.56, Zacks reports. The firm had revenue of $246.65 million for 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 hours on Friday, reaching $188.51. 277,176 shares of the company were exchanged, compared to its average volume of 156,931. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.82 and a current ratio of 0.82. The firm has a market cap of $2.41 billion, a PE ratio of 8.13 and a beta of 1.04. The stock’s fifty day moving average is $172.58 and its 200 day moving average is $163.32. HCI Group has a 1 year low of $137.81 and a 1 year high of $210.50.

HCI Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Investors of record on Friday, August 21st will be paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Friday, August 21st. HCI Group’s dividend payout ratio is presently 6.90%.

Institutional Trading of HCI Group

Several institutional investors and hedge funds have recently bought and sold shares of HCI. State Street Corp increased its holdings in shares of HCI Group by 4.7% in the fourth quarter. State Street Corp now owns 384,788 shares of the insurance provider’s stock valued at $73,760,000 after purchasing an additional 17,299 shares during the period. Wellington Management Group LLP grew its position in HCI Group by 16.7% during the third quarter. Wellington Management Group LLP now owns 352,935 shares of the insurance provider’s stock worth $67,739,000 after buying an additional 50,378 shares during the period. Dimensional Fund Advisors LP increased its stake in HCI Group by 7.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 318,536 shares of the insurance provider’s stock valued at $61,060,000 after purchasing an additional 22,261 shares in the last quarter. Freestone Grove Partners LP raised its stake in shares of HCI Group by 353.6% during the 4th quarter. Freestone Grove Partners LP now owns 275,108 shares of the insurance provider’s stock worth $52,735,000 after buying an additional 214,464 shares during the last quarter. Finally, Geode Capital Management LLC increased its holdings in HCI Group by 6.1% during the 4th quarter. Geode Capital Management LLC now owns 272,976 shares of the insurance provider’s stock valued at $52,333,000 after acquiring an additional 15,729 shares in the last quarter. Hedge funds and other institutional investors own 86.99% of the company’s stock.

Analyst Ratings Changes

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

More 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

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.