Long Position on HRTG @ $10.25 on 4/1/2024 (Fundamentals)

Heritage Insurance Holdings, Inc. (HRTG), through its subsidiaries, provides personal and commercial residential insurance products.

Upward Trading ChannelThe company offers personal residential insurance in Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia; commercial residential insurance for properties in Florida, New Jersey, and New York; and licensed in the state of Pennsylvania, as well as personal residential and wind-only property insurance.

It also provides restoration, emergency, and recovery services; property management, and reinsurance services; homeowners insurance products, including single-family, homeowners or duplex, and condominium owners; and dwelling fire insurance policies. In addition, the company provides personal line policies through a network of retail independent agents, wholesale agents, and a partnership with a direct agency, as well as distribute indirectly to retail locations through wholesale agency relationships.

Further, it offers personal and commercial insurance policies through a network of independent agencies.

The company was founded in 2012 and is headquartered in Tampa, Florida.

Please note, this stock reported earnings on Monday, March 11th.

Heritage Insurance reported earnings of $1.15 per share on revenue of $186.97 million for the fourth quarter ended December 2023. The consensus earnings estimate was $0.45 per share on revenue of $185.11 million. The company beat consensus estimates by 155.56% while revenue grew 7.09% on a year-over-year basis.

Shares of Heritage Insurance Holdings, Inc. have gained 45% over the past month, and currently trade at a forward P/E of 6.78X and a P/CF of 7.72X.

The Insurance - Property and Casualty industry is in the top 16% of all the industries we have in our universe, so it looks like there are some nice tailwinds for HRTG, even beyond their own solid fundamental situation.

Entry Point: $10.25

Trading Range: $2.85 - $11.07

Stop Loss: $9.75

Target Price: $11.25

Position closed on 4/19/2024 at price of $9.75 with a -4.88% loss in 18 days.

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