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Is HCI Stock a Buy After One Hedge Fund Upped Its Stake by $9 Million?
The Motley Foolยท 2025-12-03 07:43
Core Insights - HCI Group is experiencing strong business performance in 2025, with significant revenue and profit growth [1][8] - Alden Global Capital LLC has increased its stake in HCI Group, indicating a bullish outlook on the stock [2][7] Company Overview - HCI Group, Inc. is a diversified financial services company focused on property and casualty insurance in Florida, supported by reinsurance, real estate, and proprietary technology solutions [6][10] - As of November 14, 2025, HCI's market capitalization is $2.33 billion, with a share price of $179.99, reflecting a 58.51% increase over the prior year [4][3] Financial Performance - For the first three quarters of 2025, HCI reported pre-tax income of $285.3 million, up from $167.5 million in 2024, and net income of $212.4 million, compared to $123.4 million in the previous year [8][11] - The company's revenue for the trailing twelve months (TTM) stands at $816.85 million, with a net income of $195.54 million [4] Investment Insights - Alden Global Capital's increased stake in HCI represents 7.06% of its 13F reportable assets under management (AUM), making HCI the sixth largest holding in its portfolio [3][2] - HCI's price-to-earnings ratio of 11 is considered low for 2025, suggesting that the shares are still a good value for long-term investment [11]