Truist lowered Heritage Insurance’s price target after Q1 earnings missed due to slower growth and higher weather losses.
Truist analyst Mark Hughes reduced Heritage Insurance Holdings Inc. (NYSE:HRTG) price target to $36 from $39 while maintaining a Buy rating. The adjustment follows a first-quarter earnings miss driven by slower top-line growth and marginally higher weather-related losses.
Heritage reported Q1 net income of $36.5 million, a 19.7% year-over-year increase, with diluted EPS rising 20.2% to $1.19. The company improved its net loss ratio to 45.9%, generated $24.9 million in operating cash flow, and repurchased $12.0 million in shares. New business written surged 62.7% year over year, though weather losses totaled $37 million.
CEO Ernie Garateix called the quarter the most profitable first quarter since 2014, despite the weather impact.