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/ACIC
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American Coastal Insurance Corp

American Coastal Insurance Corp

ACIC
$9.34USD↓-0.11%-0.01 today

MARKET CAP

452.7M

P/E (TTM)

4.3x

FWD P/E

—

DAY RANGE

$9 – $10

52W RANGE

$9
$13

AI Summary

Stalk
Sell NowMedium

ACIC is in a Stage 4 decline with active Support Failure confirming dominant selling pressure. Price trades below downward-sloping EMAs with expanding downside momentum, reinforcing a medium-term bearish bias and favoring immediate sell execution. The long-term trend is sideways, offering no structural support for upside.

  • ↑Added $25M to share repurchase, raising total capacity to $50M.
  • ↑Reported Q2 net income of $21.9M, demonstrating underwriting discipline.
  • ↓Gross premiums written fell 5% YOY to $216.3M.
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The case for & against

Bull & Bear analysis

Bearish

American Coastal Insurance Corporation (NASDAQ: ACIC) is a leading provider of Florida commercial and residential property insurance. The company has maintained its dominance in the state’s insurance market while exercising prudent underwriting practices amidst a competitive landscape characterized by softening premiums. As a key player within the property insurance sector, ACIC navigates regulatory considerations and market cycles, particularly focusing on hurricanes, which pose significant challenges given Florida’s geography.

Bull says

  • ↑Added $25M to share repurchase, raising total capacity to $50M.
  • ↑Reported Q2 net income of $21.9M, demonstrating underwriting discipline.
  • ↑Stockholders’ equity increased to $340.8M; debt cut from $150M to $75M.
  • ↑Earnings yield ~2% and dividend yield ~1.1% provide return cushion.
  • ↑Plans to expand via disciplined underwriting and smart new business.
  • ↑Combined ratio of 74.3% indicates profitable underwriting discipline.

Bear says

  • ↓Gross premiums written fell 5% YOY to $216.3M.
  • ↓Total revenue guidance downgraded to $300–320M amid pricing pressure.
  • ↓Combined ratio rose to 74.3%, signaling margin pressure year-over-year.
  • ↓Negative growth and earnings revisions scores indicate weakening momentum.
  • ↓Elevated short interest reflects bearish investor sentiment and volatility risk.
  • ↓Adverse reserve development risk could trigger earnings and cash flow volatility.

Investment themes with ACIC

P&C Insurance↑ +0.45%

GWRE · MBI · HCI

Earnings Call · Q3 2023 · Mgmt. Guidance

Updated 12-03-2024bullish

Transcript signals

Bull points

  • Our commercial lines segment now comprises over 90% of the third quarter gross written premium and 95% of the gross earned premium, with pretax income of $25.9 million in the third quarter and $90.2 million year-to-date.
  • The net combined ratio attributable to the commercial lines segment was 52.5% in the third quarter and 55.3% year-to-date, down from 100.5% and 80.3% year-over-year, respectively.
  • American Coastal's commercial segment underlying combined ratio was 48.9% in the third quarter and 54.3% year-to-date, down from 57.7% and 66.1%, respectively, year-over-year. This demonstrates the improvement in profitability produced by the commercial lines portfolio and the earnings power of our commercial book of business.
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