Heritage Insurance Holdings, Inc. (NYSE:HRTG) Director Paul L. Whiting has recently purchased shares of the company's common stock, according to the latest filings with the Securities and Exchange Commission. The transaction, which took place on March 14, 2024, involved the acquisition of 20,000 shares at an average price of $8.14 per share, amounting to a total investment of $162,800.
The recent purchase by Whiting demonstrates a significant investment in the company, with the price of shares ranging from $8.09 to $8.19 each. This indicates a strong vote of confidence from the director in the future of Heritage Insurance Holdings. Following the transaction, the total number of shares owned by Whiting in the company stands at 20,000, as directly reported in the SEC filing.
It's noteworthy that the shares are indirectly owned through Paul & Gail Whiting Investments Limited, which is under the control of Whiting. He has disclaimed beneficial ownership of these shares, except to the extent of his pecuniary interest. Additionally, Whiting Family, LLC, also controlled by Whiting and his spouse, holds a separate portion of shares, further underlining the director's connection to the company.
Heritage Insurance Holdings, based in Tampa, Florida, specializes in fire, marine, and casualty insurance. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol HRTG.
Investors often keep a close eye on insider transactions such as these, as they can provide insights into the executives' perspectives on the company's current valuation and future prospects. The acquisition of shares by a company director like Whiting can be interpreted as a positive signal by the market, potentially influencing the stock's performance.
The SEC filing was signed by Paul L. Whiting on March 18, 2024, affirming the accuracy of the reported information.
InvestingPro Insights
In light of the recent insider share purchase by Director Paul L. Whiting at Heritage Insurance Holdings, Inc. (NYSE:HRTG), current and prospective investors may find the following InvestingPro Data and InvestingPro Tips insightful. Heritage Insurance's market capitalization stands at approximately $257.77 million, reflecting its valuation in the market. The company's shares are trading at a low earnings multiple, with a P/E ratio of 4.93 and an adjusted P/E ratio for the last twelve months as of Q4 2023 at 5.61, suggesting that the stock could be undervalued relative to its earnings.
Moreover, Heritage Insurance has demonstrated significant returns, with a one-week price total return of 14.83% and an impressive one-year price total return of 179.25%. This trend of strong returns is also evident over the last month and three months, with respective returns of 29.91% and 21.09%. These metrics may reinforce the confidence that Director Whiting has shown through his recent stock purchase.
However, it's important to note that the company does not pay dividends to shareholders, which could be a consideration for income-focused investors. Additionally, while analysts predict the company will be profitable this year, and it has been profitable over the last twelve months, Heritage Insurance suffers from weak gross profit margins, currently at 19.27%.
For those seeking more comprehensive analysis, there are additional InvestingPro Tips available for Heritage Insurance, which can be accessed through InvestingPro's platform. These tips delve into other aspects of the company's financial health and market performance. Interested investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these insights, investors can better gauge the potential risks and opportunities associated with Heritage Insurance Holdings.
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