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Heritage Insurance Holdings (HRTG)
NYSE:HRTG
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Heritage Insurance Holdings
(NYSE:HRTG)
Rating:81Outperform
Price Target:
$28.00
▲(13.87% Upside)
Positive Factors
Revenue Growth
Consistent revenue growth indicates expanding market presence and effective sales strategies, contributing to long-term business sustainability.
Cash Flow Management
Robust cash flow management enhances financial flexibility, enabling strategic investments and resilience against economic fluctuations.
Credit Facility Expansion
Expanding credit facilities with better terms strengthens financial position and supports strategic growth initiatives.
Negative Factors
Decrease in Policies In-Force
A reduction in policies in-force can limit revenue growth potential and market share, impacting long-term business expansion.
Investment Income Decline
Declining investment income may affect overall profitability and limit funds available for reinvestment in growth opportunities.
Equity Fluctuations
Fluctuations in equity can indicate financial instability, affecting investor confidence and the company's ability to raise capital.
Heritage Insurance Holdings (HRTG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$740.70M
Dividend YieldN/A
Average Volume (3M)425.07K
Price to Earnings (P/E)6.9
Beta (1Y)0.84
Revenue Growth9.35%
EPS Growth77.04%
CountryUS
Employees540
SectorFinancial
Sector Strength73
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.55
Shares Outstanding31,017,570
10 Day Avg. Volume317,107
30 Day Avg. Volume425,066
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)1.27
Price to Sales (P/S)0.45
P/FCF Ratio4.69
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue1.06
Enterprise Value/Gross Profit1.54
Enterprise Value/Ebitda5.72
Forecast
1Y Price Target
$30.00Price Target Upside22.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Heritage Insurance Holdings Business Overview & Revenue Model
Company DescriptionHeritage Insurance Holdings, Inc. (HRTG) is a property and casualty insurance company primarily focused on the residential insurance market. Headquartered in Clearwater, Florida, the company operates predominantly in the southeastern United States, providing homeowners insurance, dwelling fire insurance, and other related coverages. HRTG's mission is to offer affordable and reliable insurance products while maintaining a commitment to customer service and community engagement.
How the Company Makes MoneyHeritage Insurance Holdings generates revenue primarily through the sale of insurance premiums. When customers purchase insurance policies, they pay a premium that serves as the company's main source of income. The company also benefits from investment income derived from the premiums collected, which are invested in various financial instruments until claims are paid out. Additionally, HRTG may engage in reinsurance arrangements to mitigate risk, allowing them to manage large claims while still generating revenue from policyholders. Strategic partnerships with agents and brokers also help expand their market reach, contributing to overall sales and profitability.
Heritage Insurance Holdings Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call reflects a predominantly positive sentiment, with significant increases in net income, improvements in the net loss ratio, and successful refinancing efforts. Despite some decreases in policies in-force and investment income, the overall financial performance and strategic positioning suggest strong growth potential and stability.Q2-2025 Updates
Positive Updates
Significant Increase in Net Income
Net income increased to $48 million in Q2 2025, up from $18.9 million in Q2 2024, reflecting strong financial performance and effective strategic initiatives.
Net Loss Ratio Improvement
The net loss ratio improved by 17.2 points to 38.5% from 55.7% in the previous year, attributed to enhanced underwriting strategies and favorable reserve developments.
Growth in Gross Premiums Earned
Gross premiums earned rose to $353.6 million, a 1% increase from the prior year, driven by business growth and rate actions.
Successful Refinancing of Credit Facilities
The company upsized its senior credit facility to $200 million from $150 million with more favorable terms, reflecting strong support from banking partners.
Decreased Weather and Catastrophe Losses
Net weather and catastrophe losses decreased by $7.2 million compared to the prior year, due to improved underwriting and reduced frequency of severe weather events.
Book Value Per Share Increase
The book value per share increased to $12.36 at June 30, 2025, up 48.6% from the second quarter of 2024, driven by strong net income and reduced unrealized losses.
Negative Updates
Decrease in Policies In-Force
The company saw a decrease of over 7,700 policies in-force this quarter, continuing the trend of policy contraction as part of strategic rate adequacy efforts.
Decrease in Net Investment Income
Net investment income for the quarter was $9 million, a decrease of $800,000 from the prior year, due to a lower interest rate environment for sweep accounts and money market funds.
Company Guidance
In the second quarter of 2025, Heritage Insurance Holdings reported a robust net income of $48 million, a significant improvement from $18.9 million in the same period last year. This increase was attributed to strategic initiatives that enhanced rate adequacy, exposure management, and underwriting discipline, resulting in a decrease in policies in-force by over 200,000 over the past four years while increasing in-force premium from $1.1 billion to $1.4 billion. The company's new business production surged 46% from the second quarter of 2024, marking the highest level since 2022, with notable growth in the Northeast and Mid-Atlantic regions, particularly New York and Virginia. Gross premiums earned rose to $353.6 million, a 1% increase, while net premiums earned grew by 3.2% to $196.3 million. The net loss ratio improved to 38.5% from 55.7% in the previous year, driven by lower net losses and increased premiums. Additionally, the net combined ratio improved to 72.9%. Heritage also successfully refinanced its senior credit facilities, increasing the facility to $200 million with more favorable terms. Looking ahead, the company anticipates continued growth and expansion, supported by strategic investments in technology and infrastructure.Heritage Insurance Holdings Financial Statement Overview
Summary
Heritage Insurance Holdings shows strong revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet reflects conservative leverage and effective equity utilization, although historical fluctuations in equity warrant attention.Income Statement
Heritage Insurance Holdings has demonstrated strong revenue growth with a 10.8% increase from 2023 to 2024. The company has maintained a high gross profit margin of 99.9% in 2024, indicating efficient cost management. The net profit margin improved to 7.5% in 2024 from 6.1% in 2023, reflecting enhanced profitability. However, the company faced challenges in earlier years with negative EBIT and net income, indicating past volatility.75
Positive
Balance Sheet
The company has a healthy equity ratio of 11.8% in 2024, showing a solid equity base relative to total assets. The debt-to-equity ratio is low at 0.49, indicating conservative leverage. Return on equity improved to 21.2% in 2024, showcasing effective use of equity to generate profits. Despite these strengths, the stockholders' equity has fluctuated over the years, reflecting potential instability.70
Positive
Cash Flow
Heritage Insurance Holdings has shown robust cash flow management with a significant free cash flow growth of 30.3% from 2023 to 2024. The operating cash flow to net income ratio is 1.42, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.28, reflecting efficient capital expenditure management. The company has consistently generated positive free cash flow, enhancing financial flexibility.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 842.42M | 817.74M | 737.73M | 662.46M | 631.56M | 593.38M |
| Gross Profit | 577.68M | 816.99M | 735.50M | 662.46M | 631.56M | 593.38M |
| EBITDA | 155.63M | 103.16M | 71.90M | -157.36M | -59.62M | 18.29M |
| Net Income | 106.94M | 61.54M | 45.31M | -154.36M | -74.73M | 9.33M |
Balance Sheet | ||||||
| Total Assets | 2.54B | 2.47B | 2.15B | 2.39B | 1.98B | 2.09B |
| Cash, Cash Equivalents and Short-Term Investments | 473.46M | 452.67M | 553.17M | 916.45M | 1.03B | 1.00B |
| Total Debt | 115.49M | 141.34M | 148.19M | 170.19M | 151.93M | 121.00M |
| Total Liabilities | 2.15B | 2.18B | 1.93B | 2.26B | 1.64B | 1.65B |
| Stockholders Equity | 383.30M | 290.80M | 220.28M | 131.04M | 343.05M | 442.34M |
Cash Flow | ||||||
| Free Cash Flow | -28.82M | 78.86M | 60.52M | -46.64M | 59.12M | 169.46M |
| Operating Cash Flow | -25.31M | 87.09M | 70.42M | -34.26M | 60.13M | 170.21M |
| Investing Cash Flow | 50.32M | -91.60M | 100.81M | -37.86M | -124.48M | 22.06M |
| Financing Cash Flow | -29.96M | -5.19M | 14.55M | -5.06M | -17.28M | -28.90M |
Heritage Insurance Holdings Technical Analysis
Positive
24.59
Price Trends
22.05
Positive
22.45
Positive
17.56
Positive
Market Momentum
0.57
Negative
60.18
Neutral
51.42
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 24.59 is above the 20-day moving average (MA) of 22.89, above the 50-day MA of 22.05, and above the 200-day MA of 17.56, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 60.18 is Neutral, neither overbought nor oversold. The STOCH value of 51.42 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $740.70M | 6.90 | 33.49% | ― | 9.35% | 77.04% | |
72 Outperform | $726.37M | 10.76 | 15.60% | 3.00% | 5.64% | -17.95% | |
70 Outperform | $539.34M | 6.70 | 31.54% | ― | 23.68% | 16.14% | |
69 Neutral | $702.83M | 8.28 | 15.20% | 3.64% | 3.40% | 978.24% | |
68 Neutral | $418.17M | 14.80 | 4.13% | 4.79% | -3.71% | -21.68% | |
68 Neutral | $18.10B | 11.66 | 9.93% | 3.76% | 9.70% | 1.14% | |
56 Neutral | $280.77M | 186.28 | 0.65% | ― | -15.27% | -65.08% |
* Financial Sector Average
Performance Comparison
HRTG
Heritage Insurance Holdings
24.59
9.69
65.03%
DGICA
Donegal Group
19.48
4.82
32.88%
GBLI
Global Indemnity
29.93
-0.41
-1.35%
UVE
Universal Insurance Holdings
25.39
4.56
21.89%
ACIC
American Coastal Insurance
11.03
0.46
4.35%
NODK
NI Holdings
13.35
-1.80
-11.88%
Heritage Insurance Holdings Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Heritage Insurance Expands Credit Facilities to $200M
Positive
Jul 24, 2025
On July 22, 2025, Heritage Insurance Holdings, Inc. entered into an Amended and Restated Credit Agreement, increasing its senior secured credit facilities to $200 million and extending the maturity to July 2030. The agreement reduces loan margins and amends covenants to offer more operational flexibility, allowing the company to repay $78 million in outstanding principal from the prior agreement, potentially enhancing its financial position and strategic capabilities.
The most recent analyst rating on (HRTG) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Heritage Insurance Holdings stock, see the HRTG Stock Forecast page.
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.