Kinsale Capital Group (NYSE:KNSL) Trading Up 5.7% After Strong Earnings

Kinsale Capital Group, Inc. (NYSE:KNSL) traded up 5.7% on Friday following a better than expected earnings announcement. The company traded as high as $355.15 and last traded at $351.3010. Approximately 97,180 shares traded hands during mid-day trading, a decline of 66% from the average session volume of 282,728 shares. The stock had previously closed at $332.28.

The financial services provider reported $5.54 EPS for the quarter, topping the consensus estimate of $5.11 by $0.43. Kinsale Capital Group had a return on equity of 25.89% and a net margin of 28.49%.The business had revenue of $548.52 million during the quarter, compared to analysts’ expectations of $445.13 million. During the same quarter last year, the firm posted $4.78 earnings per share. Kinsale Capital Group’s revenue was up 16.8% compared to the same quarter last year.

Kinsale Capital Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 11th. Investors of record on Thursday, May 28th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend was Thursday, May 28th. Kinsale Capital Group’s dividend payout ratio is currently 4.05%.

Kinsale Capital Group News Summary

Here are the key news stories impacting Kinsale Capital Group this week:

• Positive Sentiment: Kinsale delivered a major Q2 earnings beat, with both profit and revenue topping estimates and revenue rising 16.8% from a year ago. Article title: Kinsale Capital Group, Inc. (KNSL) Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Higher underwriting income and investment income helped drive the quarter’s outperformance, signaling continued profitability strength. Article title: KNSL Q2 Earnings Beat on Higher Underwriting & Investment Income
• Positive Sentiment: The company authorized a new $337 million share buyback, which can support the stock by reducing share count and signaling confidence in capital strength. Article title: Kinsale outlines $337M buyback authorization as commercial property volume shrinks in competitive market
• Neutral Sentiment: Commentary around Kinsale being a “strong momentum” and “top value” stock is supportive, but it is more of a ratings/market commentary theme than a direct operational catalyst. Article title: Here’s Why Kinsale Capital Group, Inc. (KNSL) is a Strong Momentum Stock
• Neutral Sentiment: Reports noting tougher competition and shrinking commercial property volume suggest some underwriting headwinds, but the market appears focused more on the earnings beat and buyback than on those pressures. Article title: Kinsale outlines $337M buyback authorization as commercial property volume shrinks in competitive market

Analyst Ratings Changes

A number of brokerages have recently weighed in on KNSL. Weiss Ratings downgraded Kinsale Capital Group from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, June 26th. TD Cowen restated a “hold” rating on shares of Kinsale Capital Group in a report on Tuesday, June 16th. Wall Street Zen raised shares of Kinsale Capital Group from a “sell” rating to a “hold” rating in a research report on Saturday, June 20th. Wells Fargo & Company upped their price objective on shares of Kinsale Capital Group from $357.00 to $366.00 and gave the company an “equal weight” rating in a research note on Thursday, July 9th. Finally, Cantor Fitzgerald cut their target price on shares of Kinsale Capital Group from $360.00 to $280.00 and set a “neutral” rating for the company in a research report on Thursday, April 9th. One analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $373.80.

Insider Activity

In related news, insider Salmaan K. Allibhai sold 250 shares of the stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $311.17, for a total value of $77,792.50. Following the transaction, the insider owned 3,645 shares in the company, valued at approximately $1,134,214.65. This represents a 6.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CAO Christopher R. Tangard acquired 330 shares of the business’s stock in a transaction that occurred on Monday, June 8th. The shares were acquired at an average cost of $304.00 per share, for a total transaction of $100,320.00. Following the transaction, the chief accounting officer owned 380 shares of the company’s stock, valued at approximately $115,520. This represents a 660.00% increase in their position. The disclosure for this purchase is available in the SEC filing. 5.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Life Cycle Investment Partners Ltd bought a new stake in Kinsale Capital Group in the fourth quarter worth $229,653,000. Capital World Investors lifted its position in shares of Kinsale Capital Group by 117.4% in the fourth quarter. Capital World Investors now owns 987,844 shares of the financial services provider’s stock worth $386,366,000 after buying an additional 533,499 shares during the last quarter. Norges Bank acquired a new stake in shares of Kinsale Capital Group in the fourth quarter worth about $107,916,000. Bank of America Corp DE boosted its stake in shares of Kinsale Capital Group by 89.0% during the 1st quarter. Bank of America Corp DE now owns 285,535 shares of the financial services provider’s stock worth $97,556,000 after acquiring an additional 134,468 shares in the last quarter. Finally, Turtle Creek Asset Management Inc. boosted its stake in shares of Kinsale Capital Group by 47.6% during the 1st quarter. Turtle Creek Asset Management Inc. now owns 411,246 shares of the financial services provider’s stock worth $140,506,000 after acquiring an additional 132,576 shares in the last quarter. Institutional investors own 85.36% of the company’s stock.

Kinsale Capital Group Stock Performance

The company has a current ratio of 0.10, a quick ratio of 0.10 and a debt-to-equity ratio of 0.11. The firm has a market cap of $8.04 billion, a price-to-earnings ratio of 14.13, a price-to-earnings-growth ratio of 1.12 and a beta of 0.90. The stock has a fifty day moving average price of $321.17 and a 200 day moving average price of $349.35.

Kinsale Capital Group Company Profile

Kinsale Capital Group, Inc (NYSE:KNSL) is a specialty property and casualty insurance company headquartered in Richmond, Virginia. Established in 2009, the company focuses on underwriting complex and underserved risks across the United States. Kinsale operates through a network of wholesale brokers and independent agencies, offering tailored coverage solutions for a range of niche industries.

The company’s product portfolio includes general liability, business auto, professional liability, environmental liability, inland marine, cyber liability, and other specialty lines.