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Kingstone Companies, Inc (KINS) Soars 5.4%: Is Further Upside Left in the Stock?

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Kingstone Companies, Inc (KINS - Free Report) shares soared 5.4% in the last trading session to close at $5.09. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.2% loss over the past four weeks.

Recently, the board of directors received a preliminary non-binding indication of interest from Griffin Highline Capital LLC to buy Kingstone Companies.
Kingstone has been benefiting from positive impact of rate increases.

Improving policies in force, high retentions, system conversion to lower expenses and improve efficiency bodes well for growth. KINS estimates expense ratio to improve in 2022.

Kingstone has been suffering high catastrophe losses, thus decided to strengthen reinsurance protections and enter into a new 30% quota share treaty for 2022. This in turn will de-risk KINS.

This company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +76%. Revenues are expected to be $35.5 million, down 10.1% 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 25% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates 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 #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Kingstone Companies, Inc belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Hallmark Financial (HALL - Free Report) , closed the last trading session 2.4% lower at $3.27. Over the past month, HALL has returned -6.2%.

Hallmark Financial's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.10. Compared to the company's year-ago EPS, this represents a change of -63%. Hallmark Financial currently boasts a Zacks Rank of #5 (Strong Sell).

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