From Yahoo Finance: 2025-06-09 11:43:00

American Coastal Insurance Corporation (ACIC) has a bullish thesis, trading at $11.75 with a trailing P/E of 7.99. The company operates in a high-premium market with disciplined underwriting and resilience against hurricane risk. Despite concerns from the past, it remains undervalued with returns potential of 2-3x in the future.

The company’s 2022 combined ratio was 86.5%, showing superior underwriting discipline even after Hurricane Ian. With a 2024 P/E of 6.9 and high cash flow yield, ACIC is returning capital to shareholders and has potential for modest organic growth. Despite weather-driven volatility, it presents an asymmetric value play with compelling upside.

While ACIC is not among the 30 Most Popular Stocks Among Hedge Funds, it remains an investment with potential. With 20 hedge fund portfolios holding ACIC, the company offers risk and reward opportunities. AI stocks may hold greater promise for higher returns, but ACIC’s value proposition remains strong.



Read more at Yahoo Finance: American Coastal Insurance Corporation (ACIC): A Bull Case Theory