Assessing Hamilton Insurance Group (NYSE:HG) Valuation After Recent Share Price Pullback

Hamilton Insurance Group (NYSE:HG) has drawn attention after recent share price moves, with the stock down 2.1% on the day and 4.1% over the past week, while remaining modestly positive over the past month.

See our latest analysis for Hamilton Insurance Group.

Zooming out, the recent 1 day and 7 day share price declines sit against an 8.5% 90 day share price return and a 41.8% 1 year total shareholder return. This suggests momentum has cooled in the short term but remains supportive over a longer horizon.

If Hamilton’s moves have you reviewing the insurance space, it can be a good moment to widen your watchlist with healthcare stocks that might fit a more defensive profile.

With Hamilton trading at $26.74, sitting below an analyst price target of $29.21 and alongside an estimated intrinsic value gap, the key question is whether the current price reflects a discount or whether the market already prices in future growth.

Most Popular Narrative: 7.6% Undervalued

With Hamilton Insurance Group closing at $26.74 against a narrative fair value estimate of $28.93, the current price sits below that framework and puts the focus squarely on what is being assumed for future earnings and margins.

The analysts have a consensus price target of $25.429 for Hamilton Insurance Group based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $29.0, and the most bearish reporting a price target of just $23.0.

Read the complete narrative.

Want to see what is sitting behind that fair value gap? Revenue growth, margin shifts and a leaner share count are doing the heavy lifting in this narrative.

Result: Fair Value of $28.93 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that fair value gap could narrow quickly if specialty and reinsurance losses spike, or if acquisition and expense ratios keep pressure on margins.

Find out about the key risks to this Hamilton Insurance Group narrative.

Build Your Own Hamilton Insurance Group Narrative

If you see the numbers differently or prefer to piece together your own view from the raw data, you can build a custom narrative in just a few minutes by starting with Do it your way.

A great starting point for your Hamilton Insurance Group research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Hamilton has your attention, do not stop there. Broaden your opportunity set with a few focused screens that can quickly surface other stocks worth a closer look.

• Spot potential value by scanning these 877 undervalued stocks based on cash flows that line up with your own expectations on cash flows and quality.
• Supercharge your growth watchlist by zeroing in on these 25 AI penny stocks that sit at the intersection of technology and earnings potential.
• Target income opportunities by reviewing these 11 dividend stocks with yields > 3% that might complement a portfolio focused on regular cash returns.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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