HCI Group (NYSE:HCI – Get Free Report) released its quarterly earnings data on Wednesday. The insurance provider reported $5.45 earnings per share for the quarter, topping analysts’ consensus estimates 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 business had revenue of $242.88 million for the quarter, compared to analysts’ expectations 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 Price Performance
HCI traded down $1.17 on Thursday, reaching $152.74. The company had a trading volume of 263,729 shares, compared to its average volume of 165,168. The company has a fifty day moving average of $158.30 and a 200-day moving average of $171.10. The company has a market capitalization of $1.96 billion, a P/E ratio of 6.73 and a beta of 1.09. 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 one year low of $136.37 and a one year high of $210.50.
HCI Group Announces Dividend
Analysts Set New Price Targets
A number of research firms recently weighed in on HCI. Weiss Ratings cut shares of HCI Group from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, April 21st. Zacks Research raised shares of HCI Group from a “hold” rating to a “strong-buy” rating in a report on Friday, February 27th. Citigroup reaffirmed a “market outperform” rating on shares of HCI Group in a report on Friday, January 16th. Finally, Wall Street Zen raised shares of HCI Group from a “buy” rating to a “strong-buy” rating in a report on Sunday. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $231.67.
Check Out Our Latest Report on HCI Group
Hedge Funds Weigh In On HCI Group
A number of institutional investors and hedge funds have recently bought and sold shares of HCI. Freestone Grove Partners LP grew its position in HCI Group by 353.6% in the 4th quarter. Freestone Grove Partners LP now owns 275,108 shares of the insurance provider’s stock valued at $52,735,000 after buying an additional 214,464 shares in the last quarter. Danske Bank A S bought a new position in HCI Group in the 3rd quarter valued at about $19,256,000. Jacobs Levy Equity Management Inc. grew its position in HCI Group by 129.1% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 125,399 shares of the insurance provider’s stock valued at $24,038,000 after buying an additional 70,662 shares in the last quarter. Balyasny Asset Management L.P. grew its position in HCI Group by 46.8% in the 2nd quarter. Balyasny Asset Management L.P. now owns 185,430 shares of the insurance provider’s stock valued at $28,222,000 after buying an additional 59,134 shares in the last quarter. Finally, Invesco Ltd. grew its position in HCI Group by 85.6% in the 3rd quarter. Invesco Ltd. now owns 127,203 shares of the insurance provider’s stock valued at $24,414,000 after buying an additional 58,663 shares in the last quarter. Institutional investors own 86.99% of the company’s stock.
More HCI Group News
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
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.
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