Hippo (NYSE:HIPO) Shares Gap Up – Should You Buy?

Shares of Hippo Holdings Inc. (NYSE:HIPO) gapped up before the market opened on Wednesday . The stock had previously closed at $27.08, but opened at $28.50. Hippo shares last traded at $28.6180, with a volume of 8,843 shares trading hands.

Analysts Set New Price Targets

HIPO has been the topic of a number of analyst reports. Texas Capital upgraded shares of Hippo to a “strong-buy” rating in a research note on Tuesday, June 9th. B. Riley Financial initiated coverage on Hippo in a research note on Friday, April 17th. They issued a “buy” rating and a $38.00 price target for the company. Zacks Research raised Hippo to a “hold” rating in a report on Tuesday, March 3rd. Weiss Ratings upgraded Hippo from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, May 4th. Finally, Keefe, Bruyette & Woods upped their price objective on Hippo from $30.00 to $32.00 and gave the stock a “market perform” rating in a research note on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, Hippo has a consensus rating of “Moderate Buy” and a consensus price target of $38.33.

Hippo Price Performance

The firm’s fifty day moving average price is $26.49 and its 200 day moving average price is $27.88. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.11. The stock has a market cap of $765.84 million, a PE ratio of 6.81 and a beta of 1.51.

Hippo (NYSE:HIPO) last issued its earnings results on Wednesday, March 4th. The company reported $0.67 earnings per share for the quarter. The firm had revenue of $120.40 million during the quarter. Hippo had a net margin of 23.45% and a return on equity of 12.17%. As a group, equities analysts expect that Hippo Holdings Inc. will post 1.03 EPS for the current fiscal year.

Insider Activity

In other news, CEO Richard Mccathron sold 5,000 shares of the firm’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $27.10, for a total transaction of $135,500.00. Following the completion of the transaction, the chief executive officer owned 604,212 shares in the company, valued at $16,374,145.20. This trade represents a 0.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Torben Ostergaard sold 3,667 shares of the firm’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $26.10, for a total value of $95,708.70. Following the transaction, the chief executive officer owned 65,673 shares of the company’s stock, valued at approximately $1,714,065.30. The trade was a 5.29% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 18,667 shares of company stock valued at $486,459 in the last three months. Insiders own 10.80% of the company’s stock.

Hedge Funds Weigh In On Hippo

Several institutional investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC raised its holdings in shares of Hippo by 8.3% during the 1st quarter. AQR Capital Management LLC now owns 16,193 shares of the company’s stock worth $414,000 after acquiring an additional 1,236 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in shares of Hippo by 30.5% in the second quarter. JPMorgan Chase & Co. now owns 208,472 shares of the company’s stock valued at $5,823,000 after purchasing an additional 48,677 shares in the last quarter. American Century Companies Inc. grew its holdings in shares of Hippo by 6.3% in the second quarter. American Century Companies Inc. now owns 43,417 shares of the company’s stock valued at $1,213,000 after purchasing an additional 2,588 shares in the last quarter. Quantbot Technologies LP bought a new stake in Hippo in the second quarter worth $33,000. Finally, Walleye Capital LLC bought a new stake in Hippo in the second quarter worth $358,000. Hedge funds and other institutional investors own 43.01% of the company’s stock.

About Hippo

Hippo Enterprises Inc is a technology-driven home insurance company that offers modernized homeowners insurance products through a digital-first platform. Leveraging data analytics, artificial intelligence and smart home devices, the company designs tailored coverage plans intended to streamline the underwriting process and deliver more comprehensive protection for homeowners. Hippo’s policies typically include standard dwelling coverage, personal property protection and liability insurance, along with optional add-ons such as water backup, home computer systems and equipment breakdown coverage.

Through its online portal and partner network of licensed insurance agents, Hippo provides policyholders with a range of services aimed at minimizing risk and preventing losses before they occur.