TAMPA, Fla., Nov. 6, 2024 /PRNewswire/ -- Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a super-regional property and casualty insurance holding company, today reported third quarter of 2024 financial results.Third Quarter 2024 Result Highlights Net income of $8.2 million or $0.27 per diluted share, improved from net loss of ($7.4) million or ($0.28) per diluted share in the prior year quarter Gross premiums earned of $354.2 million, up 5.1% from $337.0 million in the prior ...

Core Viewpoint - Heritage Insurance Holdings, Inc. (HRTG) is currently trading at a discount compared to the Zacks Property and Casualty Insurance industry, with a price-to-book value of 1.42X, lower than the industry average of 1.62X and the broader sector's 3.8X [1] Company Overview - HRTG has a market capitalization of $362.4 million and an average trading volume of 0.5 million shares over the last three months [2] Valuation Comparison - HRTG shares are attractively valued compared to NMI Holdings (NMIH) but are considered expensive when compared to MGIC Investment Corporation (MTG) and Radian Group (RDN) [3] Stock Performance - HRTG shares have increased by 82.5% over the past three months, outperforming its industry, sector, and the Zacks S&P 500 composite during the same period [4] Technical Indicators - HRTG shares are trading well above the 50-day moving average, indicating a bullish trend [6] Analyst Sentiment - Positive sentiment is reflected as two analysts have raised earnings estimates for 2024 and 2025 by 33.1% and 26.7%, respectively, over the past 60 days [8] Growth Drivers - Key growth factors for HRTG include rate adequacy, selective underwriting, and limiting new business in over-concentrated markets. The company has ceased writing new personal lines policies in Florida and the Northeast due to declining profitability [9] - HRTG's excess and supply (E&S) business has shown strong performance in states like California, Florida, and South Carolina, with plans to explore growth opportunities in more states [11] Financial Management - HRTG has a solid reinsurance program to protect its balance sheet, especially against coastal risks. Improvements in this program and growing gross premiums are expected to lower the ceded premium ratio [12] - The company has suspended dividend payments to strengthen its financial position and is investing in technology and high-potential segments [12] Profitability Metrics - HRTG's return on equity in the trailing 12 months was 26.3%, significantly higher than the industry average of 8% [13] - The return on invested capital (ROIC) for HRTG was 17.2%, also above the industry average of 6.1%, indicating effective fund utilization [14] Investment Outlook - HRTG's focus on organic growth in its commercial and residential business, along with improvements in pricing and margins, positions it well for future growth. The company currently holds a Zacks Rank 1 (Strong Buy) [16][17]

Some investors prefer to target small-cap stocks, as their growth potential is undoubtedly hard to ignore. After all, don't we all dream of getting in early on the next big thing? Of course, it's critical for investors to realize the higher volatility nature of small-caps, as they are less liquid and more sensitive to monetary policy. For those interested in the idea, two small-caps – Heritage Insurance (HRTG) and EZCORP (EZPW) – sport favorable growth profiles paired with positive Zacks Ranks. Let's take a ...

Friday's mixed jobs report extended the broader selloff in markets this week with September known to be the most volatile month of the year. Amid heightened market volatility investors may want to consider several insurance stocks that have made their way onto the coveted Zacks Rank #1 (Strong Buy) list. Specifically, three of these highly ranked insurance stocks hail from the Zacks Insurance-Property and Casualty Industry which is currently in the top 18% of over 250 Zacks industries. Considering insurance ...

Shares of Heritage Insurance Holdings, Inc. (HRTG) closed at $16.24 on Tuesday, near its 52-week high of $16.55, after having gained 149.2% year to date. Shares outperformed the industry, the Finance sector as well as the Zacks S&P 500 composite index in the same time frame. This super-regional U.S. property and casualty insurance holding company delivered an earnings surprise in three of the last four quarters, while missed in one. Prudent underwriting execution and rate adequacy initiatives pursued over t ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2] Company Overview: Heritage Insurance (HRTG) - Heritage Insurance currently holds a Momentum Style Score of B, indicating potential for solid momentum [3] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong performance expectations [4] Performance Metrics - HRTG shares have increased by 1.78% over the past week, while the Zacks Insurance - Property and Casualty industry rose by 1.85% [6] - Over the last quarter, HRTG shares have surged by 88.7%, and over the past year, they have gained 190.36%, significantly outperforming the S&P 500's increases of 5.71% and 27.74% respectively [7] Trading Volume - The average 20-day trading volume for HRTG is 634,642 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, two earnings estimates for HRTG have been revised upwards, increasing the consensus estimate from $1.45 to $1.93 [10] - For the next fiscal year, two estimates have also moved higher, with no downward revisions noted [10]

Core Viewpoint - Heritage Insurance (HRTG) is currently identified as a strong value stock, supported by its Zacks Rank of 1 (Strong Buy) and an A for Value, indicating it is likely undervalued in the market [3][6]. Valuation Metrics - HRTG has a Price-to-Sales (P/S) ratio of 0.63, significantly lower than the industry average of 1.21, suggesting it may be undervalued [4]. - The company’s Price-to-Cash Flow (P/CF) ratio stands at 7.69, compared to the industry average of 11.64, indicating a solid cash outlook and potential undervaluation [5]. Investment Outlook - The combination of HRTG's strong earnings outlook and favorable valuation metrics positions it as an attractive investment opportunity for value investors [6].

Company Overview - Heritage Insurance Holdings, Inc. is a property and casualty insurance company based in Tampa, Florida, founded in 2012, focusing on residential insurance products [5] - The company rejoined the Russell 3000® Index in July 2024, enhancing its visibility among investors [5] - Heritage announced a 3.3% rate drop for Florida homeowners insurance effective August 20, 2024, reflecting a trend of decreasing premiums in the state [5] Financial Performance - In Q2 2024, Heritage Insurance reported a gross written premium increase of $28 million, a 7.1% rise year-over-year [6] - Total revenue reached $203.6 million, marking a 9.9% increase, driven by strong premiums and improved investment returns [7] - Net income surged by $11 million, a 143% increase, indicating robust profit growth [6] Business Segments - The commercial residential segment saw a 29.4% increase in in-force premiums, contributing positively to overall gross profit [8] - The Excess & Surplus (E&S) segment experienced a significant growth of 177% in premiums, reaching nearly $30 million, reflecting increased operational scale [8] - Heritage operates in 16 different markets, with a strategic focus on not relying too heavily on any single state, ensuring stability and risk management [8] Risk Management and Strategy - The company improved its net loss ratio to 55.7%, down from 60.3% the previous year, showcasing better underwriting practices [8] - Shareholder equity increased, with book value per share rising to $8.32, a 32.7% year-over-year growth [8] - Management is optimizing its reinsurance program to lower the ceded premium ratio, which is expected to enhance future profits [9] Valuation Metrics - HRTG's blended P/E ratio stands at 9.14x, below its historical average of 11.37x, suggesting potential undervaluation [10] - The fair value ratio of 15.00x indicates that the stock may be trading below its true value, presenting an upside opportunity [11] Growth Prospects - Year-over-year revenue growth is reported at 9.37%, significantly outperforming the sector by 114.15% [8] - Forward revenue growth is projected at 10.19%, indicating continued momentum [8] - EBITDA growth is exceptionally high at 542.87%, supported by a 442.42% increase in operating cash flow [9] Recent Developments - The company has suspended its quarterly dividend to reinvest in technology, cybersecurity, and infrastructure, which may impact short-term profits but is crucial for long-term growth [12] - Heritage cut its policy count by over 69,000, or 14.1%, compared to Q2 2023, focusing on profitable areas while managing risk [12]

After reaching an important support level, Heritage Insurance Holdings, Inc. (HRTG) could be a good stock pick from a technical perspective. HRTG recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average. There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a ...

Relative strength focuses on stocks that have performed well compared to a relevant benchmark. For our purposes, the S&P 500 will be the benchmark. By targeting those displaying this favorable price action, investors can participate in positive market trends where buyers are in control. Recently, several top-ranked finance stocks have shown precisely that. Heritage Insurance (HRTG) , EZCORP (EZPW) , and Erie Indemnity (ERIE) have all enjoyed positive price action over the last month, as illustrated below. B ...