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Heritage Insurance - AI Stock Analysis
Analysis generated February 23, 2025
Heritage Insurance Holdings, Inc. is a property and casualty insurance holding company. The company provides personal and commercial residential insurance along with personal and commercial wind-only coverage. Heritage Insurance operates primarily in coastal states, including Florida, which is one of the largest markets for homeowners' insurance in the United States. The company aims to deliver tailored insurance solutions, comprehensive coverage, and superior customer service.
Fundamental Analysis
Heritage Insurance reported revenue for the last quarter of $212 million, marking an increase of 4.07% from the previous quarter. This increase is a positive sign of growth and indicates the company is generating higher income from its operations. Compared to the same quarter last year, the revenue shows an increase of 13.71%, reinforcing the positive year-over-year growth trend.
However, net income for the last quarter was $8.2 million, which is a decrease of 56.80% from the previous quarter. This drop is concerning and suggests that despite higher revenue, profitability has been negatively impacted. Yet, compared to the same quarter last year, net income increased by a remarkable 209.81%, signifying substantial improvement over the previous year's performance.
EBITDA for the last quarter was $11 million, representing a decrease of 53.68% compared to the previous quarter. This decline signals potential operational challenges. Nevertheless, year-over-year EBITDA growth of 258.19% demonstrates a significant turnaround from the previous year's figures.
The current Price to Earnings (P/E) ratio stands at 4.38. A low P/E ratio such as this can indicate that the stock is undervalued and may present a bullish outlook for investors looking for value opportunities in the market.
Technical Analysis
Today’s stock price of Heritage Insurance is $11.08, which is a decrease of 1.77% compared to a month ago. This short-term dip can be concerning for investors looking for immediate gains. However, compared to a year ago, the stock price has increased by 55.40%, indicating a strong long-term positive trend.
Currently, the trend is bearish. The Simple Moving Average (SMA10) is 12.03, which is lower than the previous SMA10 of 12.15. This decline suggests a potential downward trend in price movement. The Relative Strength Index (RSI) is 45.8, placing it in a neutral condition, indicating neither an overbought nor an oversold status.
Alternative Data Analysis
Heritage Insurance currently has 36 open positions according to data from job boards and this number has remained stable over the last couple of months, suggesting a stable workforce and a steady company environment. The business outlook among employees at Heritage Insurance is neutral.
On the customer acquisition front, the company’s estimated number of webpage visitors is 19,000, down by 17% in the last couple of months. This trend is worrisome as it may indicate a decline in customer interest or acquisition.
In terms of customer engagement, Heritage Insurance has 910 followers on Instagram, with no meaningful increase or decrease in the last couple of months. This indicates a static level of social media engagement.
AltIndex’s AI score, which predicts a company’s stock price based on fundamental, technical, and alternative data analysis, is 61 for Heritage Insurance. This score indicates a buy signal, reflecting an optimistic outlook for the stock based on an aggregation of various data points.
Conclusion and Recommendation
Heritage Insurance demonstrates both positive and concerning elements in its stock analysis. On the one hand, the company shows strong year-over-year growth in revenue, net income, and EBITDA, along with a low P/E ratio that may indicate undervaluation. On the other hand, the short-term profitability and operational performance are areas of concern, as indicated by the quarter over quarter declines in net income and EBITDA. The bearish trend in technical analysis and static customer engagement metrics also warrant caution.
Considering the above factors, it is recommended that investors perform further due diligence. The long-term growth prospects appear promising, but some risks need to be managed in the short-term. As always, investment decisions should align with one's individual risk tolerance and investment horizons.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
