Hippo (NYSE:HIPO) Shares Gap Up – Time to Buy?

Shares of Hippo Holdings Inc. (NYSE:HIPO) gapped up before the market opened on Tuesday . The stock had previously closed at $27.76, but opened at $29.37. Hippo shares last traded at $29.42, with a volume of 9,654 shares.

Analyst Ratings Changes

A number of brokerages have recently commented on HIPO. Texas Capital upgraded Hippo to a “strong-buy” rating in a report on Tuesday, June 9th. Weiss Ratings raised Hippo from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, May 4th. Keefe, Bruyette & Woods boosted their target price on Hippo from $32.00 to $33.00 and gave the company a “market perform” rating in a research note on Wednesday, July 8th. Finally, B. Riley Financial assumed coverage on Hippo in a research report on Friday, April 17th. They set a “buy” rating and a $38.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $38.67.

Hippo Stock Up 2.2%

The firm’s 50-day simple moving average is $26.91 and its 200 day simple moving average is $27.60. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.99 and a current ratio of 0.99. The stock has a market capitalization of $775.74 million, a P/E ratio of 6.90 and a beta of 1.49.

Hippo (NYSE:HIPO) last announced its quarterly earnings data on Wednesday, March 4th. The company reported $0.67 earnings per share for the quarter. The company had revenue of $120.40 million during the quarter. Hippo had a return on equity of 12.17% and a net margin of 23.45%. As a group, research analysts expect that Hippo Holdings Inc. will post 0.95 EPS for the current year.

Insider Buying and Selling

In other news, CEO Richard Mccathron sold 5,000 shares of the company’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $27.10, for a total transaction of $135,500.00. Following the sale, the chief executive officer owned 604,212 shares in the company, valued at $16,374,145.20. This represents a 0.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Torben Ostergaard sold 3,667 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were 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 directly owned 65,673 shares of the company’s stock, valued at approximately $1,714,065.30. The trade was a 5.29% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 18,667 shares of company stock valued at $498,859. Corporate insiders own 4.48% of the company’s stock.

Hedge Funds Weigh In On Hippo

A number of institutional investors have recently added to or reduced their stakes in HIPO. Stoic Point Capital Management LLC raised its stake in Hippo by 0.8% in the 1st quarter. Stoic Point Capital Management LLC now owns 251,116 shares of the company’s stock valued at $6,544,000 after acquiring an additional 2,100 shares during the period. Quantinno Capital Management LP boosted its position in Hippo by 118.7% during the first quarter. Quantinno Capital Management LP now owns 17,529 shares of the company’s stock worth $457,000 after purchasing an additional 9,515 shares during the period. Sei Investments Co. increased its holdings in shares of Hippo by 25.4% in the first quarter. Sei Investments Co. now owns 161,440 shares of the company’s stock valued at $4,207,000 after purchasing an additional 32,728 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Hippo by 8.2% in the first quarter. Dimensional Fund Advisors LP now owns 394,907 shares of the company’s stock valued at $10,291,000 after purchasing an additional 29,993 shares during the last quarter. Finally, R Squared Ltd bought a new position in shares of Hippo in the first quarter valued at about $253,000. 43.01% of the stock is currently owned by institutional investors and hedge funds.

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.