Shares of Kinsale Capital Group (NYSE: KNSL) have been downgraded from a “hold” rating to a “sell” rating by Wall Street Zen, according to a research report issued to investors on November 25, 2023. This decision follows a series of evaluations from various other financial institutions, highlighting a shift in market sentiment regarding the company’s performance.
Several analysts have weighed in on Kinsale’s stock in recent weeks. Notably, Morgan Stanley reduced its price target for Kinsale from $490.00 to $480.00 while maintaining an “overweight” rating in a report released on November 17, 2023. Meanwhile, Cantor Fitzgerald upgraded the stock to a “hold” rating on August 13, 2023, and the Royal Bank Of Canada initiated coverage with a “sector perform” rating and a price target of $415.00. JPMorgan Chase & Co. also adjusted their price target, lowering it from $460.00 to $450.00 and assigning a “neutral” rating on October 27, 2023. Weiss Ratings reaffirmed a “hold (c+)” rating on November 25, 2023.
Analyst consensus indicates that Kinsale Capital Group has three “buy” ratings and eight “hold” ratings, leading to an overall consensus rating of “hold” with an average target price of $483.78, according to data from MarketBeat.
Kinsale Capital Group Reports Strong Earnings
Kinsale Capital Group’s recent quarterly earnings report, released on October 23, 2023, revealed a strong performance. The financial services provider reported earnings of $5.21 per share, exceeding analysts’ expectations of $4.79 by $0.42. The company generated revenue of $497.51 million for the quarter, significantly higher than the anticipated $446.00 million. Kinsale’s net margin stood at 26.30%, and it achieved a return on equity of 25.66%. This performance marks a 19.0% increase in revenue compared to the same quarter last year, when the company reported $4.20 earnings per share.
Looking ahead, analysts anticipate that Kinsale Capital Group will post earnings of $17.72 per share for the current fiscal year.
Dividend Announcement and Institutional Investments
In addition to its earnings report, Kinsale Capital Group announced a quarterly dividend of $0.17, scheduled for payment on December 11, 2023. Shareholders on record as of November 28, 2023, will receive this dividend, reflecting an annualized dividend of $0.68 and a yield of 0.2%. The company’s dividend payout ratio currently stands at 3.34%.
Institutional investor activity has also been notable. Recently, several hedge funds adjusted their stakes in Kinsale Capital Group. For instance, V Square Quantitative Management LLC acquired a new position during the second quarter valued at $31,000. Johnson Financial Group Inc. increased its holdings by 257.1% in the third quarter, now owning 75 shares valued at $32,000. Other firms, including Root Financial Partners LLC and Larson Financial Group LLC, have also made significant investments. Currently, institutional investors own approximately 85.36% of Kinsale’s stock.
Kinsale Capital Group, based in the United States, specializes in providing property and casualty insurance products across various sectors, including commercial property, casualty, construction, and healthcare, among others. As the company navigates changing market conditions, investor sentiment and stock performance will be closely monitored in the coming months.
