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Heritage Insurance (HRTG) Soars 6.6%: Is Further Upside Left in the Stock?

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Heritage Insurance (HRTG - Free Report) shares ended the last trading session 6.6% higher at $9.84. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 45.8% gain over the past four weeks.

The board of directors of Heritage Insurance recently approved a $10 million share repurchase program. The insurer will execute the program through this year.

The insurer recently raised capital that will help it pursue selective growth opportunities, especially in geographies where rate adequacy meets stringent criteria. It stated that the capital allocation is geared towards maximizing long-term returns and shareholder value. Heritage Insurance  thus stay focused to actively manage underperforming areas of business and seek opportunities to drive long-term profitability and shareholder returns.

The insurer thus believe disciplined approach to exposure management, combined with strategic investments in technology and process improvements should poise it well to navigate the evolving market dynamics and capitalizing on growth opportunities.

This property and casualty insurance holding company is expected to post quarterly earnings of $0.61 per share in its upcoming report, which represents a year-over-year change of +10.9%. Revenues are expected to be $189.05 million, up 6.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Heritage Insurance, the consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on HRTG going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Heritage Insurance is part of the Zacks Insurance - Property and Casualty industry. Kinsale Capital Group, Inc. (KNSL - Free Report) , another stock in the same industry, closed the last trading session 0.4% higher at $514.97. KNSL has returned 3.3% in the past month.

For Kinsale Capital Group, the consensus EPS estimate for the upcoming report has changed +1.4% over the past month to $3.29. This represents a change of +34.8% from what the company reported a year ago. Kinsale Capital Group currently has a Zacks Rank of #3 (Hold).


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