Kinsale Capital Group (NYSE:KNSL) faced a setback as Wall Street Zen downgraded its rating from “Hold” to “Sell” in a research report released on Saturday. This decision adds to a wave of recent assessments from various analysts regarding the company’s stock performance.
Several financial institutions have updated their projections for Kinsale Capital Group. Notably, Morgan Stanley reduced its price target from $490.00 to $480.00 while maintaining an “Overweight” rating, as detailed in a report issued on November 17, 2023. In contrast, Cantor Fitzgerald upgraded Kinsale to a “Hold” rating on August 13, 2023. Meanwhile, the Royal Bank of Canada initiated coverage with a “Sector Perform” rating and set a price target of $415.00 on November 25, 2023.
JPMorgan Chase & Co. also adjusted its outlook, lowering the price objective from $460.00 to $450.00, aligning with a “Neutral” rating issued on October 27, 2023. According to MarketBeat data, the consensus rating for Kinsale Capital Group remains a “Hold,” with a consensus target price of $483.78.
Kinsale Capital Group Reports Strong Earnings
Despite the downgrade, Kinsale Capital Group recently announced positive quarterly earnings on October 23, 2023. The financial services provider reported earnings per share (EPS) of $5.21, surpassing analysts’ expectations of $4.79 by $0.42. The company achieved revenue of $497.51 million, significantly exceeding the forecasted $446.00 million. The robust performance reflects a net margin of 26.30% and a return on equity of 25.66%. Year-over-year, revenue increased by 19.0%, compared to $4.20 EPS reported during the same quarter last year.
Analysts predict that Kinsale Capital Group will report an EPS of 17.72 for the current fiscal year.
Dividend Announcement and Institutional Activity
The company also declared a quarterly dividend of $0.17, scheduled for payment on December 11, 2023, to shareholders recorded as of November 28, 2023. This represents an annualized dividend of $0.68 and a yield of 0.2%, with a dividend payout ratio of 3.34%.
Institutional investors have been active in adjusting their stakes in Kinsale Capital Group. V Square Quantitative Management LLC acquired a new position valued at $31,000 during the second quarter. Johnson Financial Group Inc. significantly 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, also added to their positions, highlighting growing institutional interest. Approximately 85.36% of Kinsale Capital Group’s stock is currently held by institutional investors.
Kinsale Capital Group operates as a specialty insurance provider, offering a range of property and casualty insurance products across the United States. Its diverse portfolio includes commercial property, small business casualty, excess professional liability, and various niche markets.
Despite the recent downgrade, Kinsale’s solid earnings report and active institutional participation suggest a complex landscape for investors as they navigate the evolving market conditions.
