Paresh Patel Amends HCI Group Stake Filing

TL;DR

Patel updated his HCI Group 13D filing. Still a major player.

AI Summary

Paresh Patel filed an amendment (Amendment No. 10) to his Schedule 13D on April 25, 2024, regarding his holdings in HCI Group, Inc. The filing indicates a change in the date as of which the information is reported to April 25, 2024. Patel is a significant shareholder in the fire, marine, and casualty insurance company.

Why It Matters

This filing updates information for a significant shareholder in HCI Group, Inc., which could signal changes in strategy or ownership intentions relevant to other investors.

Risk Assessment

Risk Level: medium — Schedule 13D filings often indicate significant ownership stakes and potential activist intentions, which can introduce volatility.

Key Players & Entities

• Paresh Patel (person) — Filing person and significant shareholder
• HCI Group, Inc. (company) — Subject company
• 40416E103 (other) — CUSIP Number for HCI Group, Inc. common stock

FAQ

Key Financial Figures

• $40.00 — of Common Stock at an exercise price of $40.00 per share, expiring January 7, 2027; ve
• $53.00 — of Common Stock at an exercise price of $53.00 per share, expiring January 15, 2029; v
• $48.00 — of Common Stock at an exercise price of $48.00 per share, expiring January 16, 2030 an
• $70 — of Common Stock at an exercise price of $70 per share, expiring September 15, 2033,
• $114.90 — tock, respectively - Price per share: $114.90 and $111.00, respectively (d) Other t
• $111 — tively - Price per share: $114.90 and $111.00, respectively (d) Other than the R

Filing Documents

• sc13-da_paresh_4-17-24.htm (SC 13D/A) — 82KB
• 0000950170-24-048039.txt ( ) — 84KB

Source and Amount of Funds or Other Consideration

Item 3. Source and Amount of Funds or Other Consideration.

of this Schedule 13D is hereby amended to add the following information

Item 3 of this Schedule 13D is hereby amended to add the following information : This Amendment No. 10 is being filed to report that, as of the date of the filing of this Schedule 13D/A (the “Filing Date”), the Reporting Person’s beneficially owned holdings of the Issuer’s Common Stock class of securities increased from 1,432,500 shares to 1,634,000 shares. The change resulted from open market purchases of 1,500 shares by the Reporting Person between April 9 and April 11, 2024 and the grant by the Issuer to the Reporting Person of an award on April 17, 2024 of 200,000 shares of restricted stock.

Interest in Securities of the Issuer

Item 5. Interest in Securities of the Issuer.

of this Schedule 13D is hereby amended and restated as follows

Item 5 of this Schedule 13D is hereby amended and restated as follows : The ownership percentage set forth herein as of the Filing Date is based on 10,476,413 shares of Common Stock outstanding as of the Filing Date plus 590,000 shares of Common Stock representing the Reporting Person’s vested options to purchase 110,000 shares of Common Stock at an exercise price of $40.00 per share, expiring January 7, 2027; vested options to purchase 110,000 shares of Common Stock at an exercise price of $40.00 per share, expiring February 8, 2028; vested options to purchase 110,000 shares of Common Stock at an exercise price of $53.00 per share, expiring January 15, 2029; vested options to purchase 110,000 shares of Common Stock at an exercise price of $48.00 per share, expiring January 16, 2030 and vested options to purchase 150,000 shares of Common Stock at an exercise price of $70 per share, expiring September 15, 2033, representing a total of 11,066,413 shares of Common Stock deemed outstanding for purposes of calculating the Reporting Person’s ownership percentage as of the Filing Date. (a) As of the Filing Date, the Reporting Person directly owned (jointly with spouse) 727,000 shares of Common Stock, directly owned (personally) 69,500 shares of Common Stock, and directly owned 210,000 Restricted Shares (all of which the Reporting Person may vote and receive dividends and other distributions but may not assign, sell, transfer, pledge, encumber or otherwise alienate or hypothecate). The Reporting Person indirectly owned (via his IRA) 37,500 shares of Common Stock. The Reporting Person beneficially owns 590,000 shares of Common Stock issuable upon exercise of vested options. The Common Stock beneficially owned by the Reporting Person represented 14.77% of the total number of shares of Common Stock outstanding as of the Filing Date. (b) The Reporting Person has and will continue to have the sole power vote 834,000 shares of Common Stock (727,000 of which ar

Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.

of this Schedule 13D is hereby amended to add the following information

Item 6 of this Schedule 13D is hereby amended to add the following information : The summary of the Nonqualified Stock Option Agreements, as set forth in Item 3, is incorporated herein by reference. The foregoing summary of these agreements is generalized, does not purport to be complete and, as such, is qualified in its entirety by the Nonqualified Stock Option Agreements set forth in Exhibits 99.4, 99.6, 99.8, 99.10, and 99.13 below and incorporated into this Item 6 by reference. Other than as may be described in the Schedule 13D filed on March 4, 2016, the Schedule 13D/A filed on March 1, 2018, the Schedule 13D/A filed on February 8, 2019, the Schedule 13D/A filed on June 7, 2019, the Schedule 13D/A filed on December 13, 2020, the Schedule 13D/A filed on March 1, 2021, the Schedule 13D/A filed on March 29, 2022, the Schedule 13D/A filed on May 31, 2022, the Schedule 13D/A filed on February 1, 2023, and the Schedule 13D/A filed on December 27, 2023, there are no contracts, arrangements, understandings or relationships between the Reporting Person and any person with respect to any securities of the Issuer, including, but not limited to, the transfer or voting of any of the securities, finder’s fees, joint ventures, loan or option agreements, puts or calls, guarantees of profits, division of profits or loss, or the giving or withholding of proxies.

Material to be Filed as Exhibits

Item 7. Material to be Filed as Exhibits.

of this Schedule 13D is hereby amended and restated as follows

Item 7 of this Schedule 13D is hereby amended and restated as follows: EXHIBIT DOCUMENT 99.1 Restricted Stock Award Contract, dated May 16, 2013, between the Issuer and the Reporting Person (incorporated by reference to Exhibit 10.34 to Current Report on Form 8-K filed by the Issuer with the SEC on May 21, 2013). 99.2 Amendment to Restricted Stock Award Contract, dated March 2, 2016, between the Issuer and the Reporting Person (incorporated by reference to Exhibit 10.90 to Annual Report on Form 10-K for the year ended December 31, 2015, filed by the Issuer with the SEC on March 4, 2016). 99.3 Restricted Stock Award Contract, dated January 7, 2017, between the Issuer and the Reporting Person (incorporated by reference to Exhibit 99.1 to Current Report on Form 8-K filed by the Issuer with the SEC on January 11, 2017). 99.4 Nonqualified Stock Option Agreement, dated January 7, 2017, between the Issuer and the Reporting Person (incorporated by reference to Exhibit 99.2 to Current Report on Form 8-K filed by the Issuer with the SEC on January 11, 2017). CUSIP No. 40416E103 13D Page 5 of 6 Pages 99.5 Restricted Stock Award Contract, dated February 8, 2018, between the Issuer and the Reporting Person (incorporated by reference to Exhibit 99.1 to Current Report on Form 8-K filed by the Issuer with the SEC on February 14, 2018). 99.6 Nonqualified Stock Option Agreement, dated February 8, 2018, between the Issuer and the Reporting Person (incorporated by reference to Exhibit 99.2 to Current Report on Form 8-K filed by the Issuer with the SEC on February 14, 2018). 99.7 Restricted Stock Award Contract, dated January 15, 2019, between the Issuer and the Reporting Person (incorporated by reference to Exhibit 99.1 to Current Report on Form 8-K filed by the Issuer with the SEC on January 22, 2019). 99.8 Nonqualified Stock Option Agreement, dated January 15, 2019, between the Issuer and the Reporting Person (incorporated by reference to Exhibit

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