HCI Group (NYSE:HCI) Releases Earnings Results, Beats Expectations By $2.38 EPS

HCI Group (NYSE:HCI) issued its quarterly earnings results on Wednesday. The insurance provider reported $7.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.87 by $2.38, FiscalAI reports. HCI Group had a net margin of 24.97% and a return on equity of 31.18%. The company 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 Stock Up 2.6%

HCI stock traded up $4.27 during midday trading on Thursday, reaching $167.77. 71,796 shares of the company were exchanged, compared to its average volume of 146,497. The company has a market cap of $2.17 billion, a price-to-earnings ratio of 10.75 and a beta of 1.21. The company has a debt-to-equity ratio of 0.04, a quick ratio of 0.80 and a current ratio of 0.80. HCI Group has a 1-year low of $121.48 and a 1-year high of $210.50. The stock’s 50-day simple moving average is $170.91 and its 200 day simple moving average is $177.49.

HCI Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Friday, February 20th will be issued a dividend of $0.40 per share. The ex-dividend date of this dividend is Friday, February 20th. This represents a $1.60 dividend on an annualized basis and a yield of 1.0%. HCI Group’s dividend payout ratio (DPR) is presently 10.22%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on HCI shares. Truist Financial upped their price objective on HCI Group from $190.00 to $235.00 and gave the stock a “buy” rating in a research report on Friday, November 7th. Citizens Jmp upped their price target on HCI Group from $225.00 to $255.00 and gave the stock a “market outperform” rating in a report on Monday, November 10th. Wall Street Zen raised HCI Group from a “buy” rating to a “strong-buy” rating in a research report on Saturday, November 8th. Weiss Ratings reiterated a “buy (b)” rating on shares of HCI Group in a research note on Monday, December 29th. Finally, Zacks Research lowered shares of HCI Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. Five research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, HCI Group presently has a consensus rating of “Moderate Buy” and an average target price of $231.67.

Trending Headlines about HCI Group

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

• Positive Sentiment: Record profitability: HCI reported Q4 diluted EPS of $7.25 and full‑year diluted EPS of $22.72, materially above consensus; Q4 pre‑tax income jumped to $144M from $6M a year ago, driven by higher premiums and lower catastrophe losses. HCI Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Buyback and M&A optionality: Management signaled an $80M share repurchase program and said the company is evaluating strategic M&A to drive 2026 growth — both support EPS accretion and investor sentiment. HCI Group signals $80M share repurchase and explores strategic M&A for 2026 growth
• Positive Sentiment: Stronger underwriting results: Gross loss ratio improved to 15.6% in Q4 (19.6% for FY 2025) as hurricane‑related losses in 2024 did not recur — a key driver of the earnings beat and margin expansion. Quiver AI summary of results
• Positive Sentiment: Balance sheet and liquidity: Cash and cash equivalents rose to ~$1.21B and book value per share jumped to $80.13, giving HCI firepower for buybacks or M&A. HCI Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Analyst tone: Recent pieces note Wall Street views HCI as a buy and show price targets above current levels, which can buoy sentiment but are not guarantees. Wall Street Analysts See HCI Group (HCI) as a Buy
• Neutral Sentiment: Market backdrop: Coverage notes a rebound in the Florida insurance market supporting premium growth and unit economics; this is a sector tailwind but not company‑specific upside certainty. HCI Group earnings on deck as Florida insurance market rebounds
• Negative Sentiment: Expense and share count dynamics: Policy acquisition and G&A expenses rose (stock‑based comp and higher salaries); shares outstanding increased to ~12.99M from 10.77M — the buyback may offset some dilution but investors should watch net share movement. HCI Reports Fourth Quarter and Full Year 2025 Results
• Negative Sentiment: Catastrophe exposure remains a variable: 2024 results were heavily affected by hurricanes and future catastrophe activity can swing results; investors should monitor loss development and reinsurance costs. HCI Group: Q4 Earnings Snapshot

Institutional Investors Weigh In On HCI Group

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Transamerica Financial Advisors LLC boosted its stake in HCI Group by 519.2% in the fourth quarter. Transamerica Financial Advisors LLC now owns 161 shares of the insurance provider’s stock valued at $31,000 after acquiring an additional 135 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in HCI Group by 557.6% in 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 during the last quarter. Meeder Asset Management Inc. acquired a new position in HCI Group in the 4th quarter valued at $79,000. Kestra Advisory Services LLC purchased a new position in HCI Group during the 4th quarter worth $103,000. Finally, State of Wyoming lifted its stake in shares of HCI Group by 52.6% in 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 during the period. 86.99% of the stock is currently owned by institutional investors and hedge funds.

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.