Heritage Insurance (NYSE:HRTG) Shares Gap Down on Disappointing Earnings

Heritage Insurance Holdings, Inc. (NYSE:HRTG) shares gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $28.03, but opened at $24.44. Heritage Insurance shares last traded at $21.3210, with a volume of 257,178 shares changing hands.

The insurance provider reported $1.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.53 by ($0.34). Heritage Insurance had a return on equity of 47.28% and a net margin of 23.08%.The business had revenue of $212.66 million for the quarter, compared to analyst estimates of $215.39 million.

Analysts Set New Price Targets

A number of research firms have commented on HRTG. Truist Financial increased their price objective on shares of Heritage Insurance from $37.00 to $39.00 and gave the company a “buy” rating in a report on Monday, March 9th. Weiss Ratings reiterated a “buy (b)” rating on shares of Heritage Insurance in a report on Friday, March 27th. Zacks Research upgraded shares of Heritage Insurance from a “hold” rating to a “strong-buy” rating in a report on Wednesday, March 11th. Finally, Citigroup reiterated a “market perform” rating on shares of Heritage Insurance in a report on Tuesday, March 10th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $39.00.

Insider Buying and Selling at Heritage Insurance

In other news, CEO Ernie J. Garateix sold 8,334 shares of the stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $27.56, for a total value of $229,685.04. Following the completion of the sale, the chief executive officer owned 1,060,955 shares of the company’s stock, valued at $29,239,919.80. This represents a 0.78% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Sharon Binnun sold 9,200 shares of the stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $28.99, for a total transaction of $266,708.00. Following the completion of the sale, the chief accounting officer directly owned 123,988 shares of the company’s stock, valued at approximately $3,594,412.12. This trade represents a 6.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 130,918 shares of company stock worth $3,446,606. Insiders own 15.20% of the company’s stock.

Institutional Trading of Heritage Insurance

Several hedge funds have recently made changes to their positions in HRTG. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Heritage Insurance by 4.2% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,621 shares of the insurance provider’s stock valued at $196,000 after buying an additional 546 shares during the period. Millennium Management LLC grew its stake in shares of Heritage Insurance by 39.8% in the 1st quarter. Millennium Management LLC now owns 322,957 shares of the insurance provider’s stock valued at $4,657,000 after buying an additional 91,982 shares during the period. Empowered Funds LLC grew its stake in shares of Heritage Insurance by 8.4% in the 1st quarter. Empowered Funds LLC now owns 124,859 shares of the insurance provider’s stock valued at $1,800,000 after buying an additional 9,728 shares during the period. Strs Ohio purchased a new stake in shares of Heritage Insurance in the 1st quarter valued at approximately $127,000. Finally, JPMorgan Chase & Co. grew its stake in shares of Heritage Insurance by 1,078.7% in the 2nd quarter. JPMorgan Chase & Co. now owns 140,879 shares of the insurance provider’s stock valued at $3,514,000 after buying an additional 128,927 shares during the period. Hedge funds and other institutional investors own 59.03% of the company’s stock.

Heritage Insurance Stock Performance

The firm’s 50 day moving average price is $27.37 and its two-hundred day moving average price is $27.06. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.83 and a current ratio of 0.83. The firm has a market cap of $642.96 million, a PE ratio of 3.36 and a beta of 1.03.

About Heritage Insurance

Heritage Insurance Holdings, Inc (NYSE: HRTG) is a property and casualty insurance holding company that offers homeowners insurance and related coverage products in the United States. Through its primary subsidiary, Heritage Property & Casualty Insurance Company, the firm underwrites standard and non-standard personal lines insurance, including homeowners, dwelling fire, flood, and condominium policies. Heritage leverages a network of independent insurance agents to distribute its products across select regional markets, with an emphasis on serving property owners in areas prone to severe weather events.

Founded in 2011 and headquartered in Jupiter, Florida, Heritage Insurance has grown to become one of the leading providers of residential property insurance in the state.