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- Despite a slightly disappointing IPO, HRTG has shown impressive gains since, as investors have caught on to its strong fundamentals and industry niche.
- We expect HRTG's book value to almost double by the end of 2016, and net income to triple.
- Given continued positive market conditions, we rate HRTG a strong buy going forward in 2014 and beyond.
- The quiet period for HRTG expires June 17, at which time, the IPO underwriters will likely release detailed positive research reports on the company into the market.
- Often, quiet period expirations lead to a short-term increase in the price of shares.
- We suggest investors consider HRTG today.
- HRTG has a very attractive, highly visible, revenue stream that has the potential to do more than 100% growth Y/Y.
- HRTG's risk management structure and execution is unique based on the age of the company and based on an evolving marketplace for catastrophe bonds.
- HRTG is the beneficiary of the perfect storm of factors in the current Florida P&C market place which should be good news for longs for many quarters to come.
- Provides personal residential insurance for single-family homeowners and condominium owners in Florida.
- Wrote its first policy in November 2012 and, as a newly formed insurance company, has no legacy issues.
- In December 2012, HRTG began selectively assuming policies from Citizens through participation in a legislatively established depopulation program, designed to reduce the state’s risk exposure.
- That means HRTG policies are in the higher risk category.