As previously reported, Sandler O'Neill analyst John Barnidge downgraded Heritage Insurance to Hold from Buy and trimmed his price target on the stock to $17 from $18. He listed five reasons for his lowered rating, including a belief that recent benefit reform legislation will increase claim activity in the near-term; a view that earnings generation from recently announced bundling partnerships with large national carriers is likely "in the order of years and not months"; the fact that the Narragansett Bay transaction has led to increased catastrophe loss activity and earnings volatility; the brunt of hurricane season adding another level of stock trading volatility; and the year-to-date outperformance of the shares compared to peers.