Paresh Patel, CEO and a major owner at HCI Group (HCI), recently added 1,500 shares. The buy increased his holdings by just over 3 percent, and came to a total price of just under $104,000.
This marks the second insider buy of the year, following a buy from the company’s corporate counsel last month. Over the past three years, there’s only been one modest insider sale, and company directors and executives have been regular and steady buyers.
Overall, insiders at the company own just over 18 percent of shares.
The Florida-based property and casualty insurer has seen shares drop nearly 12 percent over the past year. The company has managed to just barely make a profit, and revenues are up nearly 60 percent in the past year, but the most recent quarterly earnings showed a steep loss.
Action to take: The company has an ample amount of cash per share, and the Florida property market is one where big hikes in premiums are possible. With shares yielding about 2.3 percent here, investors could be solidly paid for an upside in shares.
For traders, the stock is likely to hold steady until a named hurricane nears Florida during season, typically near the end of summer and into fall. The October $75 calls, last going for about $5.50, offer upside potential, but traders will likely want to close them out well before expiration.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.