Hippo (NYSE:HIPO) Shares Gap Up – Should You Buy?

Hippo Holdings Inc. (NYSE:HIPO)’s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $27.08, but opened at $28.50. Hippo shares last traded at $28.6180, with a volume of 8,843 shares.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on HIPO shares. Zacks Research upgraded shares of Hippo to a “hold” rating in a research report on Tuesday, March 3rd. Texas Capital upgraded Hippo to a “strong-buy” rating in a research report on Tuesday, June 9th. Weiss Ratings raised Hippo from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, May 4th. B. Riley Financial started coverage on Hippo in a research report on Friday, April 17th. They set a “buy” rating and a $38.00 price objective on the stock. Finally, Keefe, Bruyette & Woods raised their price objective on Hippo from $30.00 to $32.00 and gave the company a “market perform” rating in a research note on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $38.33.

Hippo Trading Up 4.1%

The company’s 50 day moving average price is $26.49 and its two-hundred day moving average price is $27.88. The firm has a market cap of $765.84 million, a PE ratio of 6.81 and a beta of 1.51. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 0.11.

Hippo (NYSE:HIPO) last released its quarterly earnings results on Wednesday, March 4th. The company reported $0.67 EPS for the quarter. The firm had revenue of $120.40 million during the quarter. Hippo had a net margin of 23.45% and a return on equity of 12.17%. As a group, sell-side analysts forecast that Hippo Holdings Inc. will post 1.03 EPS for the current year.

Insider Activity

In other news, CEO Richard Mccathron sold 5,000 shares of the company’s stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $25.00, for a total transaction of $125,000.00. Following the transaction, the chief executive officer owned 590,433 shares of the company’s stock, valued at approximately $14,760,825. This represents a 0.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Torben Ostergaard sold 3,667 shares of the stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $26.10, for a total value of $95,708.70. Following the completion of the sale, the chief executive officer owned 65,673 shares in the company, valued at approximately $1,714,065.30. The trade was a 5.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 18,667 shares of company stock valued at $486,459. 10.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Hippo

Several hedge funds have recently bought and sold shares of HIPO. Stoic Point Capital Management LLC purchased a new stake in Hippo in the fourth quarter worth $7,490,000. Jacobs Levy Equity Management Inc. purchased a new stake in shares of Hippo during the third quarter valued at $5,842,000. Geode Capital Management LLC grew its holdings in shares of Hippo by 24.1% in the fourth quarter. Geode Capital Management LLC now owns 557,066 shares of the company’s stock worth $16,760,000 after purchasing an additional 108,359 shares during the last quarter. Sei Investments Co. bought a new position in shares of Hippo in the second quarter worth about $2,810,000. Finally, Nuveen LLC increased its stake in Hippo by 238.6% in the 4th quarter. Nuveen LLC now owns 140,527 shares of the company’s stock worth $4,227,000 after buying an additional 99,020 shares during the period. Institutional investors own 43.01% of the company’s stock.

About Hippo

Hippo Enterprises Inc is a technology-driven home insurance company that offers modernized homeowners insurance products through a digital-first platform. Leveraging data analytics, artificial intelligence and smart home devices, the company designs tailored coverage plans intended to streamline the underwriting process and deliver more comprehensive protection for homeowners. Hippo’s policies typically include standard dwelling coverage, personal property protection and liability insurance, along with optional add-ons such as water backup, home computer systems and equipment breakdown coverage.

Through its online portal and partner network of licensed insurance agents, Hippo provides policyholders with a range of services aimed at minimizing risk and preventing losses before they occur.