Rhumbline Advisers has increased its holdings in HCI Group, Inc. (NYSE: HCI) by 14.3% during the second quarter of 2023, boosting its total ownership to 25,404 shares valued at approximately $3.87 million. This acquisition followed the purchase of an additional 3,177 shares, as detailed in the firm’s most recent filing with the Securities and Exchange Commission.
The increase in Rhumbline Advisers’ stake comes amidst a broader trend, with several other institutional investors also adjusting their positions in HCI Group. For instance, Global Assets Advisory LLC entered a new position in HCI during the second quarter, investing around $46,000. Meanwhile, USA Financial Formulas raised its stake by an impressive 250%, now holding 518 shares valued at $79,000 after acquiring 370 additional shares. Russell Investments Group Ltd. significantly increased its holdings by 825.7% in the first quarter, now owning 648 shares worth $97,000.
GAMMA Investing LLC also enhanced its stake by 24.5% in the second quarter, acquiring 146 additional shares, bringing their total to 742 shares valued at $113,000. Additionally, Simplex Trading LLC purchased a new stake in HCI worth $148,000 in the first quarter. Currently, institutional investors own approximately 86.99% of HCI Group’s stock.
Analysts Adjust Ratings and Price Targets
Research analysts have recently provided various insights on HCI Group shares. Oppenheimer downgraded the stock from an “outperform” rating to a “market perform” rating on November 13, 2023. Zacks Research, however, upgraded HCI Group from a “hold” to a “strong-buy” rating on October 8, 2023. Citizens JMP increased its price target for HCI Group from $225.00 to $255.00, maintaining a “market outperform” rating. Truist Financial raised its target price from $190.00 to $235.00 and reiterated a “buy” rating.
Overall, one investment analyst has assigned a Strong Buy rating to HCI Group, while five have opted for a Buy rating, and one has issued a Hold rating. According to MarketBeat, the average rating for HCI Group stands at “Buy,” with an average price target of $230.00.
HCI Group’s Market Performance and Dividend Announcement
On November 6, 2023, HCI Group reported its quarterly earnings, posting a remarkable earnings per share (EPS) of $4.90, significantly exceeding the consensus estimate of $2.44 by $2.46. The company achieved a return on equity of 31.18% and a net margin of 24.97%. Revenue for the quarter amounted to $216.35 million, slightly below the expected $223.53 million. Analysts predict that HCI Group will report earnings of $6.78 per share for the current fiscal year.
HCI Group also announced a quarterly dividend of $0.40, scheduled for payment on December 19, 2023. Stockholders of record as of November 21, 2023, will receive this dividend, which translates to an annualized dividend of $1.60 and a yield of 0.9%. The company’s current dividend payout ratio is 10.22%.
HCI Group, Inc., along with its subsidiaries, operates in the property and casualty insurance sector, providing a range of insurance products including homeowners, fire, flood, and wind-only insurance in Florida. As the market continues to evolve, HCI Group remains a significant player in the insurance industry, with a market capitalization of $2.20 billion and a P/E ratio of 10.86.
