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 ...

As of Aug 13, 2024, two stocks in the financials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions. The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Be ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Whi ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Valu ...

Core Insights - Heritage Insurance reported revenue of $203.57 million for the quarter ended June 2024, marking a 9.9% increase year-over-year and exceeding the Zacks Consensus Estimate of $196.81 million by 3.44% [1] - The company's EPS was $0.61, significantly higher than the $0.32 reported in the same quarter last year, and surpassed the consensus estimate of $0.38 by 60.53% [1] Financial Metrics - Ceded Premium Ratio was 45.6%, better than the average estimate of 47.3% from two analysts [3] - Combined Ratio stood at 92.5%, outperforming the average estimate of 96.5% from two analysts [4] - Expense Ratio was 36.8%, slightly above the average estimate of 36.5% from two analysts [5] - Loss Ratio was 55.7%, lower than the average estimate of 60% from two analysts [6] - Net investment income was $9.77 million, exceeding the estimated $8.50 million by analysts, representing a 48% increase compared to the previous year [7] - Net premiums earned were $190.32 million, surpassing the estimated $184.94 million, reflecting a 7.6% increase year-over-year [8] - Other revenue was $3.47 million, slightly above the estimated $3.38 million, showing a minor decrease of 0.1% compared to the previous year [9] Stock Performance - Heritage Insurance shares have returned +8.1% over the past month, contrasting with the Zacks S&P 500 composite's -6.7% change [9] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [9]

Heritage Insurance (HRTG) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 60.53%. A quarter ago, it was expected that this property and casualty insurance holding company would post earnings of $0.61 per share when it actually produced earnings of $0.47, delivering a surprise of -22. ...

TAMPA, Fla., Aug. 6, 2024 /PRNewswire/ -- Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a super-regional property and casualty insurance holding company, today reported second quarter of 2024 financial results. Second Quarter 2024 Result Highlights Net income of $18.9 million or $0.61 per diluted share, improved from net income of $7.8 million or $0.30 per diluted share in the prior year quarter. Gross premiums earned of $350.1 million, up 6.1% from $330.0 million in the prio ...

TAMPA, Fla., July 18, 2024 /PRNewswire/ -- Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a super-regional property and casualty insurance holding company, will announce second quarter 2024 financial results after the market closes on Tuesday, August 6, 2024, followed by a 9:00 am ET conference call and webcast on Wednesday, August 7, 2024. Conference Call Details: Participant Dial-in Numbers Toll Free: 1-888-346-3095 Telephone participants should ask to be joined into the Her ...