HCI Group (NYSE:HCI) Shares Gap Up Following Better-Than-Expected Earnings

HCI Group, Inc. (NYSE:HCI) shares gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $163.50, but opened at $179.63. HCI Group shares last traded at $174.1850, with a volume of 19,450 shares changing hands.

The insurance provider reported $7.25 EPS for the quarter, topping the consensus estimate of $4.87 by $2.38. HCI Group had a net margin of 33.19% and a return on equity of 41.15%. The firm had revenue of $246.24 million during the quarter, compared to analyst estimates of $232.36 million.

HCI Group Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Friday, February 20th will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Friday, February 20th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.9%. HCI Group’s dividend payout ratio is presently 10.22%.

More HCI Group News

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

• Positive Sentiment: HCI reported record results — Q4 diluted EPS $7.25 and FY2025 diluted EPS $22.72, both well above year-ago levels, with Q4 revenue and net income materially beating consensus; management highlighted improved underwriting and strong pre-tax income. HCI Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Management signaled an $80M share repurchase and said it is exploring strategic M&A for 2026 — a clear shareholder‑friendly step that typically supports the share price. HCI Group signals $80M share repurchase and explores strategic M&A for 2026 growth
• Positive Sentiment: Balance sheet and cash flow look strong — cash and cash equivalents jumped, book value per share rose to ~$80, and management completed the Exzeo IPO, signaling optionality and capital flexibility. QuiverQuant summary
• Positive Sentiment: Analyst sentiment is supportive — recent analyst coverage and buy/Outperform ratings (and upbeat price targets) amplify demand after the beat-and-raise style quarter. Wall Street Analysts See HCI Group (HCI) as a Buy
• Neutral Sentiment: Underlying operational details: gross premiums earned increased (policy volume up) and Q4 gross loss ratio improved to 15.6%; full‑year gross loss ratio was 19.6%. Management held an earnings call to discuss results. HCI Group Inc (HCI) Q4 2025 Earnings Call Highlights
• Negative Sentiment: Costs and variability risks remain — G&A and stock‑based compensation rose, policy acquisition expenses increased with higher premiums in force, and results are sensitive to catastrophe volatility despite year‑over‑year improvement. Earnings call transcript

Analysts Set New Price Targets

HCI has been the topic of several recent analyst reports. Citigroup reaffirmed a “market outperform” rating on shares of HCI Group in a research report on Friday, January 16th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of HCI Group in a report on Monday, December 29th. Oppenheimer lowered HCI Group from an “outperform” rating to a “market perform” rating in a report on Thursday, November 13th. Truist Financial raised their price target on shares of HCI Group from $190.00 to $235.00 and gave the company a “buy” rating in a research report on Friday, November 7th. Finally, Citizens Jmp lifted their price objective on shares of HCI Group from $225.00 to $255.00 and gave the company a “market outperform” rating in a report on Monday, November 10th. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, HCI Group has an average rating of “Moderate Buy” and a consensus price target of $231.67.

Institutional Investors Weigh In On HCI Group

A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. increased its holdings in shares of HCI Group by 4.0% in the fourth quarter. Vanguard Group Inc. now owns 839,621 shares of the insurance provider’s stock valued at $160,947,000 after purchasing an additional 32,167 shares during the last quarter. American Century Companies Inc. increased its position in shares of HCI Group by 6.7% during the 3rd quarter. American Century Companies Inc. now owns 556,670 shares of the insurance provider’s stock worth $106,842,000 after purchasing an additional 35,029 shares during the last quarter. State Street Corp raised its holdings in HCI Group by 4.7% in the 4th quarter. State Street Corp now owns 384,788 shares of the insurance provider’s stock valued at $73,760,000 after buying an additional 17,299 shares during the period. Wellington Management Group LLP boosted its stake in HCI Group by 16.7% during the third quarter. Wellington Management Group LLP now owns 352,935 shares of the insurance provider’s stock worth $67,739,000 after buying an additional 50,378 shares during the period. Finally, Dimensional Fund Advisors LP increased its position in shares of HCI Group by 7.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 318,536 shares of the insurance provider’s stock valued at $61,060,000 after acquiring an additional 22,261 shares during the last quarter. 86.99% of the stock is currently owned by institutional investors and hedge funds.

HCI Group Stock Up 4.2%

The business’s 50 day moving average price is $170.54 and its 200-day moving average price is $177.44. The company has a debt-to-equity ratio of 0.04, a quick ratio of 0.80 and a current ratio of 0.80. The firm has a market capitalization of $2.21 billion, a PE ratio of 7.51 and a beta of 1.21.

About HCI Group

HCI Group, Inc (NYSE: HCI) is a holding company whose principal business is the underwriting and issuance of property and casualty insurance through its insurance subsidiaries. Headquartered in Jacksonville, Florida, the company focuses primarily on personal-line insurance products, writing homeowners, condominium, renters and mobile home policies. HCI Group also offers wind-only and flood coverage in coastal regions across the state, providing tailored solutions to both coastal and non-coastal communities.

The company distributes its insurance products through a network of independent agents and brokers, leveraging local market expertise to assess risk and deliver personalized service.