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Kingstone Companies, Inc (KINS) Surges 8.1%: Is This an Indication of Further Gains?

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Kingstone Companies, Inc (KINS - Free Report) shares rallied 8.1% in the last trading session to close at $8.70. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.8% gain over the past four weeks.

Kingstone Companies’ fourth quarter 2020 net operating income per share, exclusive of catastrophe losses increased 14.3% year-over-year.

Effective Dec 30, 2020 Kingstone Companies terminated the 25% personal lines quota share. This marks the company’s exit from commercial liability line to considerably de-risk the business. Kingstone Companies believes to be well-capitalized to support its core business.

The board of directors approved a share repurchase program wherein the company is authorized to buyback $10 million worth shares through Mar 31, 2023. The initiation of the share buyback program reflects its solid capital position. Book value per share was at all-time high of $8.74 as on Dec 31, 2020, up 7% from 2019-end.

The company remains focused to lower expenses by a full point in 2021 and its Kingstone 2.0, initiatives to modernize the company, remains on track.

Price and Consensus

Price Consensus Chart for KINS

This company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of -566.7%. Revenues are expected to be $35.25 million, up 32.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Kingstone Companies, Inc, the consensus EPS estimate for the quarter has been revised 17.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on KINS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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