HCI Group (NYSE:HCI) Announces Quarterly Earnings Results

HCI Group (NYSE:HCI) issued its quarterly earnings data on Thursday. The insurance provider reported $5.60 EPS for the quarter, topping 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 stock traded up $7.62 during trading hours on Friday, hitting $188.51. 277,176 shares of the company’s stock traded hands, compared to its average volume of 156,931. The stock’s fifty day simple moving average is $172.58 and its two-hundred day simple moving average is $163.32. HCI Group has a 12-month low of $137.81 and a 12-month high of $210.50. The stock has a market cap of $2.41 billion, a price-to-earnings ratio of 8.13 and a beta of 1.04. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 0.03.

HCI Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Shareholders 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 currently 6.90%.

Analyst Upgrades and Downgrades

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

Institutional Trading of HCI Group

Several hedge funds and other institutional investors have recently made changes to their positions in HCI. Transamerica Financial Advisors LLC boosted its holdings in HCI Group by 519.2% in the fourth quarter. Transamerica Financial Advisors LLC now owns 161 shares of the insurance provider’s stock worth $31,000 after acquiring an additional 135 shares in the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of HCI Group by 557.6% during the second quarter. EverSource Wealth Advisors LLC now owns 217 shares of the insurance provider’s stock valued at $33,000 after acquiring an additional 184 shares in the last quarter. Meeder Asset Management Inc. purchased a new position in shares of HCI Group in the 4th quarter worth about $79,000. Kestra Advisory Services LLC purchased a new position in shares of HCI Group in the 4th quarter worth about $103,000. Finally, State of Wyoming boosted its stake in 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 purchasing an additional 256 shares in the last quarter. Hedge funds and other institutional investors own 86.99% of the company’s stock.

About HCI Group

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.