• HCI Group (HCI) is showing strong technical “buy” signals and momentum.
• Since the Trend Seeker signaled a “buy” on April 10, HCI has gained 2.05% and is trading above all its daily moving averages.
• Wall Street analysts and major investing advisory services are bullish, with 6 “Strong Buy” ratings and a price target near $151.

Today’s Featured Stock:

Valued at $1.6 billion, HCI Group (HCI) is also known as the Homeowners Choice. Its main business is Property & Casualty Insurance.

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipchart feature to review the charts for consistent price appreciation. HCI checks those boxes. Since the Trend Seeker signaled a “buy” on April 10, the stock has gained 2.05%.

On the chart, you can note that the stock is trading above all of its daily moving averages.

HCI Price vs. Daily Moving Averages:

Barchart Technical Indicators for HCI:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

When a stock is trading above all of its daily moving averages and closed within less than 3% of its 52-week high, it won’t take much to hit another new high.

• HCI has a 100% technical “buy” signal.
• The stock closed at $147.97 on April 15 within 2.57% of its 52-week high.
• HCI has a weighted alpha of +45.76
• The stock has gained 34.25% over the past year.
• Trend Seeker “buy” signal intact.
• HCI is trading above its 20-, 50- and 100-day moving averages.
• The stock has made 6 new highs and is up 6.7% in the last month.
• The 14-day Relative Strength Index is at 60.96%.
• The technical support level is at $147.08.

Follow the Fundamentals:

• Market capitalization of $1.60 billion.
• Trailing price-earnings ratio of 16.96x.
• Dividend yield 1.08%.
• Revenue is expected to grow 17.38% this year and another 2.12% next year.
• Earnings are estimated to increase 71.29% this year

Analyst and Investor Sentiment on HCI:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are bullish on this stock.

• Wall Street analysts issued four “Strong Buy” and 2 “Hold” opinions on the stock with a price target near $151.
• Value Line gives the stock an average rating.
• CFRA’s MarketScope gives the stock a “Hold” rating
• MorningStar thinks the stock is 5% undervalued.
• Motley Fool investors are bullish. Of the 402 investors following the stock on Motley Fool, 373 investors think the stock will beat the market while only 29 think it won’t.
• 5,100 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”

The Bottom Line:

Currently HCI’s has market momentum. Due to volatility, investors should be sure to always follow a disciplined strategy with diversification and moving stop losses. 

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.