Ernie J. Garateix, the Chief Executive Officer of Heritage Insurance Holdings, Inc. (NYSE:HRTG), recently acquired additional shares in the company. According to a recent SEC filing, Garateix purchased 3,950 shares of common stock on November 11, 2024, at a price of $12.53 per share. This acquisition amounts to a total value of approximately $49,493. Following this transaction, Garateix now holds 1,076,534 shares of Heritage Insurance, reflecting his continued confidence in the company's future prospects.
In other recent news, Heritage Insurance Holdings reported a significant recovery in its third-quarter 2024 earnings call, with a net income of $8.2 million. This marks a turnaround from a net loss of $7.4 million in the same quarter of the previous year. Despite substantial hurricane impacts, the company managed to support policyholders effectively. A strategic reduction in policy count, paired with an increase in premium in force, has positioned Heritage for profitability.
The company's net investment income rose by 42% year-over-year, and there was an improvement in the net combined ratio. Furthermore, Heritage plans to expand personal line policies in the Southeast and Northeast and has suspended the quarterly dividend to focus on growth. The company anticipates further rate increases in 2025 and a cautious return to writing personal lines business.
Despite incurring $48 million in hurricane losses, year-to-date net income reached $41.2 million, up from $14.4 million in the same period last year. These are just some of the recent developments at Heritage Insurance.
InvestingPro Insights
The recent stock purchase by Heritage Insurance Holdings' CEO Ernie J. Garateix aligns with several positive indicators highlighted by InvestingPro. According to InvestingPro data, Heritage Insurance has seen a significant return over the last week, with a 13.42% price total return. This short-term gain is part of a broader trend, as the company has experienced a strong 66.98% return over the past year and an impressive 89.26% year-to-date price total return.
InvestingPro Tips suggest that Heritage Insurance is currently trading at a low earnings multiple, with a P/E ratio of 4.84. This could indicate that the stock is undervalued relative to its earnings, potentially explaining the CEO's decision to increase his stake. Additionally, analysts predict that the company will be profitable this year, which may further support the positive outlook for the stock.
However, investors should note that Heritage Insurance's stock generally trades with high price volatility, as pointed out by another InvestingPro Tip. This volatility is evident in the significant price movements observed over various time frames.
For those interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for Heritage Insurance Holdings, providing a deeper insight into the company's financial health and market position. These additional tips can be valuable for investors looking to make informed decisions based on a broader range of financial metrics and expert analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.