HCI Group (NYSE:HCI) Issues Quarterly Earnings Results, Beats Expectations By $1.49 EPS

HCI Group (NYSE:HCI) issued its quarterly earnings results on Wednesday. The insurance provider reported $6.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.96 by $1.49, FiscalAI reports. HCI Group had a net margin of 33.48% and a return on equity of 28.49%. The company had revenue of $244.91 million during the quarter, compared to the consensus estimate of $247.75 million.

Here are the key takeaways from HCI Group’s conference call:

• Pre-tax income rose to $116 million from $91 million a year earlier, while diluted EPS increased to $6.45 from $4.90. Management attributed earnings growth outpacing premium growth to higher investment income, lower reinsurance costs and operating leverage.
• The balance sheet remained strong, with more than $2.1 billion in cash and investments, over $1 billion in stockholders’ equity and debt below 6% of capitalization. HCI said it repurchased 4% of its shares so far this year and reported book value per share above $90.
• Gross written premiums increased 12% year over year, led by CORE’s new residential business, which more than doubled from the prior quarter and reached about $8 million in monthly premiums. Management said the business is narrowing the gap to organic policy growth.
• Management expects insurance rates to decline somewhat in 2027, while describing the market as softer and competition for premiums as intense. Policy attrition has been steady at roughly 8% to 8.5% over the past year.
• Hurricane Isaias generated more than 1,300 claims, and HCI expects a $15 million net loss in the fourth quarter. The company said reinsurance limits its net exposure, but did not yet provide a gross-loss estimate.

HCI Group Stock Performance

Shares of NYSE HCI traded down $6.08 during midday trading on Friday, reaching $185.95. 164,111 shares of the company were exchanged, compared to its average volume of 170,206. The company has a current ratio of 0.69, a quick ratio of 0.69 and a debt-to-equity ratio of 0.03. HCI Group has a 1 year low of $144.75 and a 1 year high of $208.80. The stock has a fifty day simple moving average of $190.23 and a 200 day simple moving average of $171.36. The stock has a market cap of $2.31 billion, a P/E ratio of 7.51 and a beta of 0.96.

HCI Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Stockholders of record on Friday, November 20th will be paid a dividend of $0.40 per share. The ex-dividend date is Friday, November 20th. This represents a $1.60 annualized dividend and a dividend yield of 0.9%. HCI Group’s dividend payout ratio is 6.90%.

HCI Group News Summary

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

• Positive Sentiment: HCI reported third-quarter diluted EPS of $6.45, beating analyst estimates of roughly $5, while net income rose to $86 million from $68 million a year earlier. Gross written premiums increased 12%, and the gross loss ratio was 20.7%. HCI Group Reports Third Quarter 2026 Results
• Positive Sentiment: Analysts raised their targets: Truist moved its target to $245 from $235 and maintained a Buy rating; Citizens JMP raised its target to $280 from $265 and kept a Market Outperform rating. These revisions indicate continued optimism about the shares. Truist raises HCI price target Citizens JMP issues positive forecast
• Negative Sentiment: Quarterly revenue of $244.9 million was below the approximately $247.8 million analyst consensus. That shortfall may be tempering the reaction to the earnings beat. HCI reports sales below analyst estimates
• Negative Sentiment: HCI outlined an estimated $15 million net loss from Isaias for the fourth quarter. This expected catastrophe cost could pressure near-term results, despite the company’s strong Q3 performance. HCI outlines Isaias loss estimate

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Cantor Fitzgerald started coverage on HCI Group in a research report on Thursday, July 9th. They set an “overweight” rating and a $225.00 target price on the stock. Truist Financial increased their price objective on HCI Group from $235.00 to $245.00 and gave the company a “buy” rating in a report on Thursday. Weiss Ratings lowered shares of HCI Group from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, August 11th. Citigroup restated a “market outperform” rating on shares of HCI Group in a research report on Thursday. Finally, Zacks Research raised shares of HCI Group from a “hold” rating to a “strong-buy” rating in a report on Monday, October 5th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Buy” and an average target price of $250.00.

About HCI Group

HCI Group, Inc is a Florida-based holding company focused primarily on property and casualty insurance. Through its insurance subsidiaries, the company provides residential property insurance products, including homeowners, condominium, renters and dwelling coverage, designed to protect policyholders against risks such as wind, fire, theft and other covered losses.

HCI’s insurance operations have historically been concentrated in Florida, one of the largest and most challenging residential property-insurance markets in the United States.