Kinsale Capital Group (NYSE: KNSL) experienced a significant rating downgrade, with Wall Street Zen lowering its assessment from “hold” to “sell” in a report issued to investors on November 17, 2023. This decision comes amid a broader reevaluation of the company by various financial analysts.
In recent assessments, several other notable firms have also adjusted their ratings on Kinsale. Morgan Stanley revised its price target for the stock from $490.00 to $480.00, maintaining an “overweight” rating. Meanwhile, Cantor Fitzgerald upgraded Kinsale to a “hold” rating on August 13, 2023. On November 25, 2023, the Royal Bank of Canada initiated coverage of Kinsale, assigning a “sector perform” rating with a target price of $415.00. Additionally, JPMorgan Chase & Co. lowered its price objective from $460.00 to $450.00, also designating the stock as “neutral.”
The overall consensus among analysts now includes three “buy” ratings and eight “hold” ratings. According to data from MarketBeat, Kinsale Capital Group currently holds a consensus rating of “hold” and a target price estimate of $483.78.
Recent Financial Performance
Kinsale Capital Group reported its quarterly earnings on October 23, 2023. The company posted earnings per share (EPS) of $5.21, surpassing analysts’ expectations of $4.79 by $0.42. Total revenue for the quarter reached $497.51 million, significantly exceeding the forecast of $446.00 million. The company recorded a net margin of 26.30% and a return on equity of 25.66%. These figures represent a 19.0% increase in revenue compared to the same period the previous year when earnings were $4.20 per share. Analysts predict that Kinsale will report an EPS of 17.72 for the current fiscal year.
Dividend Announcement and Institutional Investor Activity
Kinsale Capital Group recently declared a quarterly dividend of $0.17, which is scheduled for payment on December 11, 2023. Shareholders who are on record as of November 28, 2023, will receive this dividend, marking an annualized dividend yield of 0.2%. The company’s current dividend payout ratio stands at 3.34%.
In terms of institutional investment, several hedge funds have made notable movements regarding Kinsale shares. V Square Quantitative Management LLC acquired a new position during the second quarter valued at $31,000. Johnson Financial Group Inc. increased its stake in Kinsale by 257.1% in the third quarter, now holding 75 shares valued at $32,000 after adding 54 shares. Other investors, such as Root Financial Partners LLC and Larson Financial Group LLC, have also bolstered their positions, contributing to a scenario where institutional investors own approximately 85.36% of Kinsale’s stock.
Kinsale Capital Group operates as a specialty insurance provider, offering a range of property and casualty insurance products across the United States. Its portfolio includes commercial property, small business casualty and property, and various liability insurance products tailored to specific sectors such as healthcare, energy, and entertainment.
As the financial landscape evolves, Kinsale’s performance and investor sentiment will continue to be closely monitored by analysts and stakeholders alike.
