Heritage Insurance Holdings (HRTG)
NYSE:HRTG
Want to see HRTG full AI Analyst Report?
Top Page
Heritage Insurance Holdings
(NYSE:HRTG)
Select Model
Select Model
Rating:74Outperform
Price Target:
$25.00
▼(-8.16% Downside)
Action:Reiterated
Date:05/09/26
The score is driven by strong financial improvement (profitability, cash flow, and deleveraging) and supportive earnings-call guidance/underwriting metrics, reinforced by a low P/E valuation. These positives are partially offset by weak technicals (price below major moving averages and negative momentum), indicating the market trend is currently unfavorable despite oversold readings.
Positive Factors
Deleveraging / Balance Sheet Strength
Progressive deleveraging and equity growth materially improved financial flexibility. Effectively zero debt combined with elevated ROE supports capital allocation for reinsurance, claims payment capacity, and shareholder returns, reducing solvency strain after loss years.
Negative Factors
Earnings Volatility / Catastrophe Sensitivity
Heritage's earnings remain exposed to weather and catastrophe swings; historical large year‑to‑year margin moves mean capital, reserves and earnings can reverse quickly after adverse loss events, limiting predictability of profits and ROE.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraging / Balance Sheet Strength
Progressive deleveraging and equity growth materially improved financial flexibility. Effectively zero debt combined with elevated ROE supports capital allocation for reinsurance, claims payment capacity, and shareholder returns, reducing solvency strain after loss years.
Read all positive factors
Heritage Insurance Holdings (HRTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$710.80M
Dividend YieldN/A
Average Volume (3M)397.28K
Price to Earnings (P/E)5.5
Beta (1Y)0.59
Revenue Growth1.25%
EPS Growth157.31%
CountryUS
Employees540
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)6.53
Shares Outstanding30,349,924
10 Day Avg. Volume648,693
30 Day Avg. Volume397,278
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.79
Price to Sales (P/S)1.07
P/FCF Ratio5.19
Enterprise Value/Market Cap0.44
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit0.78
Enterprise Value/Ebitda1.07
Forecast
1Y Price Target
$35.00Price Target Upside28.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)4.62
Revenue Forecast (FY)$887.81M
Heritage Insurance Holdings Business Overview & Revenue Model
Company Description
Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products. The company offers personal residential property insurance for single-family homeowners and condominium owners, and renta...
How the Company Makes Money
Heritage Insurance Holdings primarily makes money through its insurance underwriting operations and investment income. (1) Premiums earned: The company writes property and casualty insurance policies and collects premiums from policyholders. Premi...
Heritage Insurance Holdings Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call contained multiple clear operational and financial improvements (recordable first-quarter earnings, materially improved underwriting metrics at Heritage, ROE strength, strong retention and early new-business momentum, plus Calumet’s strategic milestones — MaxSAF on time and meaningful renewables and fuels tailwinds). Challenges were notable but largely manageable and often described as temporary: market-driven premium pressures in select book segments, modest expense ratio increases, a few operational outages and hedging/working-capital impacts at the fuels/renewables operator. On balance the positives (profitability, margin improvement, strategic capacity delivery, and liquidity/deleveraging focus) outweigh the negatives.Positive Updates
Record First-Quarter Profitability (Heritage)
Net income of $36.5 million, or $1.19 per diluted share, vs $30.5 million ($0.99) in Q1 2025 — the highest first-quarter earnings since becoming public in 2014.
Negative Updates
Commercial Residential Pressure (Heritage)
Commercial residential in-force premium declined 7.8% YoY due to competitive pricing pressure in the Florida commercial market, causing continued policy count reduction in that product line.
Read all updates
Q1-2026 Updates
Positive
Negative
Record First-Quarter Profitability (Heritage)
Net income of $36.5 million, or $1.19 per diluted share, vs $30.5 million ($0.99) in Q1 2025 — the highest first-quarter earnings since becoming public in 2014.
Read all positive updates
Company Guidance
The company guided to continued improvement in reinsurance pricing and lower loss costs in 2026, expecting those trends to support premium relief for policyholders while maintaining margins, and signaled controlled, profitable growth with new business up ~62.7% year‑over‑year (and >30% YoY by another measure), retention at ~88%, rate adequacy in ~90% of geographies, improving sequential policy‑count trends with double‑digit growth in some states, and a modest first‑year Texas E&S entry focused on Tier 1/2 coastal areas; Q1 results underpinning the guidance included net income of $36.5M ($1.19/diluted share) vs. $30.5M ($0.99) a year earlier, ROE of 28.5%, average shareholders’ equity up 65.5% YoY, premiums in force of $1.427B (‑0.4% YoY), gross premiums written $346.7M (‑2.6% QoQ), gross premiums earned $153.6M, net premiums earned $199.7M, net loss ratio 45.9% (down 3.8 pts YoY), net expense ratio 35.2% (vs. 34.8%), net combined ratio 81% (improved 3.5 pts), net investment income $9.9M (+15.1% YoY), an effective tax rate of 25.6%, and a new $50M share‑repurchase authorization (replacing a $25M authorization of which $12M was used).Heritage Insurance Holdings Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
76
Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 775.57M | 847.33M | 816.99M | 735.50M | 662.46M | 631.56M |
| Gross Profit | 396.79M | 534.08M | 178.75M | 141.76M | 4.99M | 58.22M |
| EBITDA | 288.50M | 279.85M | 103.16M | 71.90M | -149.00M | -59.62M |
| Net Income | 201.60M | 195.59M | 61.54M | 45.31M | -154.36M | -74.73M |
Balance Sheet | ||||||
| Total Assets | 2.02B | 2.20B | 2.47B | 2.12B | 2.39B | 1.98B |
| Cash, Cash Equivalents and Short-Term Investments | 517.07M | 658.68M | 544.00M | 553.17M | 394.56M | 1.03B |
| Total Debt | 99.05M | 99.81M | 141.34M | 148.19M | 160.19M | 151.93M |
| Total Liabilities | 1.50B | 1.69B | 2.18B | 1.90B | 2.26B | 1.64B |
| Stockholders Equity | 520.37M | 505.25M | 290.80M | 220.28M | 131.04M | 343.05M |
Cash Flow | ||||||
| Free Cash Flow | 200.82M | 174.16M | 78.86M | 60.52M | -46.64M | 59.12M |
| Operating Cash Flow | 206.26M | 182.24M | 87.09M | 70.42M | -34.26M | 60.13M |
| Investing Cash Flow | -73.50M | -32.67M | -91.60M | 100.81M | -37.86M | -124.48M |
| Financing Cash Flow | -38.83M | -40.63M | -5.19M | 14.55M | -5.06M | -17.28M |
Heritage Insurance Holdings Technical Analysis
Positive
27.22
Price Trends
26.51
Positive
27.05
Positive
25.44
Positive
Market Momentum
0.06
Negative
54.51
Neutral
72.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRTG, the sentiment is Positive. The current price of 27.22 is above the 20-day moving average (MA) of 26.45, above the 50-day MA of 26.51, and above the 200-day MA of 25.44, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 72.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HRTG.
Heritage Insurance Holdings Risk Analysis
Heritage Insurance Holdings disclosed 37 risk factors in its most recent earnings report. Heritage Insurance Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Heritage Insurance Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.08B | 4.38 | 37.50% | 2.18% | 3.57% | 198.87% | |
79 Outperform | $1.23B | 7.88 | 14.36% | 1.73% | 10.58% | 96.22% | |
74 Outperform | $710.80M | 5.52 | 43.68% | ― | 1.25% | 157.31% | |
71 Outperform | $643.67M | 13.60 | 10.41% | 3.51% | -2.46% | -11.49% | |
68 Neutral | $1.04B | -18.38 | 7.16% | 4.59% | 10.67% | -13.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $525.83M | 7.09 | 33.02% | ― | 10.65% | 39.18% |
* Financial Sector Average
HRTG
Heritage Insurance Holdings
23.99
-1.36
-5.36%
DGICA
Donegal Group
17.33
-2.68
-13.38%
SAFT
Safety Insurance Group
72.52
-7.09
-8.90%
UFCS
United Fire Group
49.20
21.38
76.86%
UVE
Universal Insurance Holdings
39.55
13.49
51.78%
ACIC
American Coastal Insurance
11.06
0.98
9.69%
Heritage Insurance Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Heritage Insurance Signals Strong Preliminary 2025 Profit Surge
Positive
Feb 23, 2026
Heritage Insurance Holdings said on February 23, 2026 that it expects to post fourth-quarter 2025 after-tax net income above $60 million, or more than $2.00 per share, and a full-year 2025 return on equity exceeding 45%, driven by higher revenue a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.