We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Kingstone Companies Trading Above 50-Day SMA: Time to Buy the Stock?
Read MoreHide Full Article
Kingstone Companies (KINS - Free Report) has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of Jan. 2, 2025, was $15.03, down 16.9% from its 52-week high of $18.08.
The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.
KINS was the 15th largest homeowner insurer in New York in 2023 with a market share of 1.6%. Kingstone Companies is poised to gain from the $200 million market opportunity with its competing carriers exiting the personal property market countrywide in July 2024.
KINS Trading Above 50-Day Moving Average
Image Source: Zacks Investment Research
KINS: An Outperformer
Shares of Kingstone Companies have rallied 612.3% in a year, zooming past the industry’s increase of 23.2%, the Finance sector’s rise of 23.2% and the Zacks S&P 500 composite’s gain of 26.1% in the same time frame.
KINS Outperforms Industry, Sector & S&P in a Year
Image Source: Zacks Investment Research
Optimistic Analyst Sentiment for KINS
The Zacks Consensus Estimate for 2025 earnings has moved 25% north in the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for 2025 suggests a 10.7% year-over-year increase on 22.8% higher revenues of $192.1 million. The company has a Growth Score of A.
KINS expects 2025 earnings per share between $1.60 and $2.00.
KINS’ Growth Strategy
Kingstone Companies’ heightened focus on core business, while prudently scaling back on unprofitable non-core business, poises this Northeast regional property and casualty insurer well for growth. The insurer only writes businesses that meet its underwriting standards and profit-margin objectives.
It has been successful in implementing a price increase ahead of inflation, matching prices to risks. KINS’ partnership with Earnix enhances its pricing capabilities and supports its strategic growth initiatives.
KINS expects direct written premium in core business to grow between 15% and 25% in 2025.
KINS’ efforts to drive higher average premiums, along with lowering commissions and staffing, helped it to lower its net underwriting expense ratio. With continued focus on lowering expenses, it now expects the net expense ratio to be less than 31% in 2024.
Kingstone Companies has a solid reinsurance program in place that shields its balance sheet from erosion. It has strengthened its balance sheet by improving its cash balance while lowering debt.
KINS’ Favorable Return on Capital
Return on equity in the trailing 12 months was 32.6%, higher than the industry average of 7.6%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders.
KINS now expects ROE between 32% and 36% in 2024 and 24% and 32% in 2025.
Image Source: Zacks Investment Research
Its return on invested capital (ROIC) has been improving for quite some time. This reflects KINS’ efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 27%, higher than the industry average of 5.8%.
Image Source: Zacks Investment Research
KINS Shares Are Expensive
The stock is overvalued compared to its industry. It is currently trading at a price-to-book multiple of 2.79, higher than the industry average of 1.53.
Image Source: Zacks Investment Research
It also has a Value Score of A. Back-tested results have shown that stocks with a solid Value Score and a favorable Zacks Rank are the most attractive, and their returns are better.
Shares of other insurers like Heritage Insurance Holdings, Inc. (HRTG - Free Report) and ROOT Inc. (ROOT - Free Report) are also trading at a multiple higher than the industry average.
Final Take on KINS Stock
KINS’ focus on its core business, improving pricing and combined ratio, expanding margins and delivering strong earnings bodes well for growth.
The target price of $17 reflects an 11.9% upside potential to Thursday's closing price.
Image Source: Zacks Investment Research
Despite its expensive valuation, the time appears right for potential investors to bet on this Zacks Rank #1 (Strong Buy) insurer, given positive analyst sentiment, its growth prospects and its VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Kingstone Companies Trading Above 50-Day SMA: Time to Buy the Stock?
Kingstone Companies (KINS - Free Report) has been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of Jan. 2, 2025, was $15.03, down 16.9% from its 52-week high of $18.08.
The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.
KINS was the 15th largest homeowner insurer in New York in 2023 with a market share of 1.6%. Kingstone Companies is poised to gain from the $200 million market opportunity with its competing carriers exiting the personal property market countrywide in July 2024.
KINS Trading Above 50-Day Moving Average
Image Source: Zacks Investment Research
KINS: An Outperformer
Shares of Kingstone Companies have rallied 612.3% in a year, zooming past the industry’s increase of 23.2%, the Finance sector’s rise of 23.2% and the Zacks S&P 500 composite’s gain of 26.1% in the same time frame.
KINS Outperforms Industry, Sector & S&P in a Year
Image Source: Zacks Investment Research
Optimistic Analyst Sentiment for KINS
The Zacks Consensus Estimate for 2025 earnings has moved 25% north in the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for 2025 suggests a 10.7% year-over-year increase on 22.8% higher revenues of $192.1 million. The company has a Growth Score of A.
KINS expects 2025 earnings per share between $1.60 and $2.00.
KINS’ Growth Strategy
Kingstone Companies’ heightened focus on core business, while prudently scaling back on unprofitable non-core business, poises this Northeast regional property and casualty insurer well for growth. The insurer only writes businesses that meet its underwriting standards and profit-margin objectives.
It has been successful in implementing a price increase ahead of inflation, matching prices to risks. KINS’ partnership with Earnix enhances its pricing capabilities and supports its strategic growth initiatives.
KINS expects direct written premium in core business to grow between 15% and 25% in 2025.
KINS’ efforts to drive higher average premiums, along with lowering commissions and staffing, helped it to lower its net underwriting expense ratio. With continued focus on lowering expenses, it now expects the net expense ratio to be less than 31% in 2024.
Kingstone Companies has a solid reinsurance program in place that shields its balance sheet from erosion. It has strengthened its balance sheet by improving its cash balance while lowering debt.
KINS’ Favorable Return on Capital
Return on equity in the trailing 12 months was 32.6%, higher than the industry average of 7.6%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders.
KINS now expects ROE between 32% and 36% in 2024 and 24% and 32% in 2025.
Image Source: Zacks Investment Research
Its return on invested capital (ROIC) has been improving for quite some time. This reflects KINS’ efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 27%, higher than the industry average of 5.8%.
Image Source: Zacks Investment Research
KINS Shares Are Expensive
The stock is overvalued compared to its industry. It is currently trading at a price-to-book multiple of 2.79, higher than the industry average of 1.53.
Image Source: Zacks Investment Research
It also has a Value Score of A. Back-tested results have shown that stocks with a solid Value Score and a favorable Zacks Rank are the most attractive, and their returns are better.
Shares of other insurers like Heritage Insurance Holdings, Inc. (HRTG - Free Report) and ROOT Inc. (ROOT - Free Report) are also trading at a multiple higher than the industry average.
Final Take on KINS Stock
KINS’ focus on its core business, improving pricing and combined ratio, expanding margins and delivering strong earnings bodes well for growth.
The target price of $17 reflects an 11.9% upside potential to Thursday's closing price.
Image Source: Zacks Investment Research
Despite its expensive valuation, the time appears right for potential investors to bet on this Zacks Rank #1 (Strong Buy) insurer, given positive analyst sentiment, its growth prospects and its VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.