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Kingstone Companies Stock Down 3% YTD: Should You Buy the Dip?
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Key Takeaways
KINS shares are down 2.7% YTD and trade below both 50-day and 200-day moving averages.
The 2025 EPS outlook of $1.75-$2.15 reflects growth on rising premiums and strict underwriting.
KINS returned to profitability in 2024 with a projected 81%-85% combined ratio in 2025.
Shares of Kingstone Companies (KINS - Free Report) have declined 2.7% so far this year, underperforming the industry’s increase of 6.6%. The stock has also underperformed the sector and the S&P 500. It is trading at a discount to its 52-week high.
The stock is also trading below its 50-day and 200-day moving averages. The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as it is the first marker of an uptrend or a downtrend. SMA is an essential tool in technical analysis that helps investors evaluate price trends by smoothing out short-term fluctuations. This approach provides a clearer perspective on a stock's long-term direction.
Kingstone Companies is the 12th largest homeowner insurer in New York, as accredited by the S&P, with a market share of 2.1% in 2024. It has a market capitalization of $210 million. The average volume of shares traded in the last three months was 0.3 million.
KINS vs. Industry, Sector & S&P 500 Year to Date
Image Source: Zacks Investment Research
Shares of other insurers like Kinsale Capital (KNSL - Free Report) lagged the industry but those of Heritage Insurance Holdings (HRTG - Free Report) zoomed past the industry.
Are KINS Shares Expensive?
Kingstone Companies shares are trading at a premium to the industry. Its price-to-book value of 2.45X is higher than the industry average of 1.56X.
The company has a Value Score of A. This style score helps find the most attractive value stocks. Back-tested results have shown that stocks with a Value Score of A or B combined with a Zacks Rank #1 (Strong Buy) or #2 (Buy) offer better returns.
Image Source: Zacks Investment Research
Shares of Kinsale Capital and Heritage Insurance Holdings are also trading at a multiple higher than the industry average.
Optimistic Growth Estimate
The Zacks Consensus Estimate for 2025 earnings stands at $1.90, suggesting an increase of 31% on 37.9% higher revenues of $214 million. The consensus estimate for 2026 earnings stands at $2.45, suggesting an increase of 29% on 11.4% higher revenues of $238.4 million.
KINS expects 2025 earnings per share to be between $1.75 and $2.15.
The consensus estimate for 2025 and 2026 earnings for both Kinsale Capital and Heritage Insurance Holdings indicates year-over-year increase.
Factors in Favor of KINS
Kingstone Companies is poised to capitalize on favorable industry trends, particularly with the Northeastern U.S. commercial insurance market expected to expand by 12.3% through 2025. The exit of several competitors from the national personal property insurance market presents Kingstone with a timely opportunity to grow its footprint and absorb displaced market share.
Despite this upside, this insurer remains vulnerable to concentration risks stemming from its limited product portfolio and geographic focus. To address this, Kingstone is executing a focused growth strategy—doubling down on its core business while divesting from non-core, underperforming segments. The company maintains strict underwriting criteria, only writing policies that meet its risk and profitability benchmarks.
In response to inflation, Kingstone has effectively realigned its pricing to reflect risk more accurately. Its collaboration with Earnix has enhanced pricing sophistication, reinforcing its broader strategic goals. For 2025, Kingstone projects a 15% to 25% increase in direct written premiums for its core business. Efficiency gains have also been realized through higher average premiums and reductions in commissions and staffing costs.
Financially, the company is on stronger footing, bolstered by a comprehensive reinsurance program, improved liquidity and a debt-free capital structure. Kingstone forecasts a markedly better combined ratio of 81% to 85% in 2025. After three consecutive years of losses, the company returned to profitability in 2024, with net margins improving by 2,910 basis points over two years—a turnaround driven by disciplined underwriting, robust risk management and favorable shifts in market dynamics.
KINS’ Favorable Return on Capital
Return on equity (ROE) in the trailing 12 months was 31.9%, higher than the industry average of 7.8%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders' equity. Kingstone Companies expects ROE between 27% and 35% 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 29.4%, higher than the industry average of 5.9%.
Image Source: Zacks Investment Research
Parting Thoughts on KINS Stock
Kingstone Companies’ focus on growing its core business and strengthening its niche market position, improving pricing and combined ratio, expanding margins and delivering strong earnings bodes well for growth. Its VGM Score of A and solid guidance instill confidence in the stock.
The average target price of $19 reflects a 26.7% upside potential from its last closing price.
Image: Bigstock
Kingstone Companies Stock Down 3% YTD: Should You Buy the Dip?
Key Takeaways
Shares of Kingstone Companies (KINS - Free Report) have declined 2.7% so far this year, underperforming the industry’s increase of 6.6%. The stock has also underperformed the sector and the S&P 500. It is trading at a discount to its 52-week high.
The stock is also trading below its 50-day and 200-day moving averages. The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as it is the first marker of an uptrend or a downtrend. SMA is an essential tool in technical analysis that helps investors evaluate price trends by smoothing out short-term fluctuations. This approach provides a clearer perspective on a stock's long-term direction.
Kingstone Companies is the 12th largest homeowner insurer in New York, as accredited by the S&P, with a market share of 2.1% in 2024. It has a market capitalization of $210 million. The average volume of shares traded in the last three months was 0.3 million.
KINS vs. Industry, Sector & S&P 500 Year to Date
Image Source: Zacks Investment Research
Shares of other insurers like Kinsale Capital (KNSL - Free Report) lagged the industry but those of Heritage Insurance Holdings (HRTG - Free Report) zoomed past the industry.
Are KINS Shares Expensive?
Kingstone Companies shares are trading at a premium to the industry. Its price-to-book value of 2.45X is higher than the industry average of 1.56X.
The company has a Value Score of A. This style score helps find the most attractive value stocks. Back-tested results have shown that stocks with a Value Score of A or B combined with a Zacks Rank #1 (Strong Buy) or #2 (Buy) offer better returns.
Image Source: Zacks Investment Research
Shares of Kinsale Capital and Heritage Insurance Holdings are also trading at a multiple higher than the industry average.
Optimistic Growth Estimate
The Zacks Consensus Estimate for 2025 earnings stands at $1.90, suggesting an increase of 31% on 37.9% higher revenues of $214 million. The consensus estimate for 2026 earnings stands at $2.45, suggesting an increase of 29% on 11.4% higher revenues of $238.4 million.
The company has a Growth Score of A.
KINS expects 2025 earnings per share to be between $1.75 and $2.15.
The consensus estimate for 2025 and 2026 earnings for both Kinsale Capital and Heritage Insurance Holdings indicates year-over-year increase.
Factors in Favor of KINS
Kingstone Companies is poised to capitalize on favorable industry trends, particularly with the Northeastern U.S. commercial insurance market expected to expand by 12.3% through 2025. The exit of several competitors from the national personal property insurance market presents Kingstone with a timely opportunity to grow its footprint and absorb displaced market share.
Despite this upside, this insurer remains vulnerable to concentration risks stemming from its limited product portfolio and geographic focus. To address this, Kingstone is executing a focused growth strategy—doubling down on its core business while divesting from non-core, underperforming segments. The company maintains strict underwriting criteria, only writing policies that meet its risk and profitability benchmarks.
In response to inflation, Kingstone has effectively realigned its pricing to reflect risk more accurately. Its collaboration with Earnix has enhanced pricing sophistication, reinforcing its broader strategic goals. For 2025, Kingstone projects a 15% to 25% increase in direct written premiums for its core business. Efficiency gains have also been realized through higher average premiums and reductions in commissions and staffing costs.
Financially, the company is on stronger footing, bolstered by a comprehensive reinsurance program, improved liquidity and a debt-free capital structure. Kingstone forecasts a markedly better combined ratio of 81% to 85% in 2025. After three consecutive years of losses, the company returned to profitability in 2024, with net margins improving by 2,910 basis points over two years—a turnaround driven by disciplined underwriting, robust risk management and favorable shifts in market dynamics.
KINS’ Favorable Return on Capital
Return on equity (ROE) in the trailing 12 months was 31.9%, higher than the industry average of 7.8%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders' equity. Kingstone Companies expects ROE between 27% and 35% 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 29.4%, higher than the industry average of 5.9%.
Image Source: Zacks Investment Research
Parting Thoughts on KINS Stock
Kingstone Companies’ focus on growing its core business and strengthening its niche market position, improving pricing and combined ratio, expanding margins and delivering strong earnings bodes well for growth. Its VGM Score of A and solid guidance instill confidence in the stock.
The average target price of $19 reflects a 26.7% upside potential from its last closing price.
Despite its expensive valuation, this Zacks Rank #1 stock is worthy of addition to one’s portfolio. You can see the complete list of today’s Zacks #1 Rank stocks here.