The Panic-Proof Portfolio (Stockchase Research) Heritage Insurance Holdings, Inc. HRTG-N PAST TOP PICK Apr 17, 2025

Stockchase Research Editor: Michael O'Reilly The company provides personal and commercial residential insurance through the Atlantic coast and Alabama and expanding into Mississippi. Recent annual earnings showed a 10% increase in revenues and EPS has grown to $0.42 per share from a 2019 average of $0.02. Analysts look for EPS to grow over 40% next year. It trades at 83% of book value. It pays a small dividend that is well supported by cashflow. We would trade this with a $11.50 stop-loss. Yield 1.94% (Analysts’ price target is $17.00)

(A Top Pick Sep 10/20, Down 13.9%)Stockchase Research Editor: Michael O'Reilly HRTG has moved down through our stop-loss level. Although the stock has demonstrated a base is forming, we do not see any new fundamental developments to warrant continuing to wait it out. We are recommending to cover and look for newer opportunities.

Stockchase Research Editor: Michael O'Reilly

The insurance provider recently reported their best quarterly earnings in Q4.  The company estimates up to $40 million in losses due to the California wildfires in Q1 2025.  We like that cash reserves are growing.  The stock trades at 5x earnings, 1.3x book and and supports a ROE of 33%.   We recommend setting a stop-loss at $8, looking to achieve $16 -- upside potential of 22%.  Yield 0.9% 

(Analysts’ price target is $16.00)

(A Top Pick Feb 20/25, Up 36.8%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with HRTG has achieved its target at $16.  To remain disciplined, we recommend covering half the position at this time and scaling up the stop (from $8) to $10.  

(A Top Pick Feb 20/25, Up 61.8%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with HRTG is progressing well.  To remain disciplined, we recommend trailing up the stop (from $12) to $14 at this time.  

Stockchase Research Editor: Michael O'Reilly

We reiterate HRTG as a TOP PICK.  Since emerging from last year's California fires, this insurance company has weathered the loss remarkably well.  Latest earnings showed EPS doubled over the year.  It trades at 10x earnings, 2.3x book and supports a ROE of 27%.  We recommend scaling up the stop (from $14.00) to $15.50, looking to achieve $29.00 -- upside potential of 16%.  Yield 0%

(Analysts’ price target is $29.00)

Stockchase Research Editor: Michael O'Reilly

As analysts praise the super-regional insurance provider going for risk mitigation versus policy growth, we reiterate HRTG as a TOP PICK.   The decision to exit high risk markets is aiding the bottom line allowing cash reserves to grow while debt is retired.  It trades at 9x earnings, 2.1x book and supports a ROE of 27%.  We recommend trailing up the stop (from $15.50) to $17.00, looking to achieve $29.00 -- upside potential of 28%.  Yield 0% 

(Analysts’ price target is $29.00)