Capital ConstraintsDespite a recent capital raise, Heritage Insurance Holdings has limited excess capital, which may constrain growth, especially with the potential risks of the upcoming wind season.
Capital DestructionFrom year-end 2019 through year-end 2022, Heritage's book value declined by 67%, indicating significant capital destruction in recent years.
Stock RatingHeritage Insurance Holdings is downgraded to Market Perform from Market Outperform as the shares have surpassed the target price and are now viewed as fairly valued.