Kinsale Capital Group (NYSE:KNSL) Hits New 1-Year Low - Should You Sell?

Key Points

• Shares hit a new 52-week low, trading as low as $321.97 (last $324.79) on elevated volume, while analyst coverage is mixed—the consensus is a "Hold" with an average price target of $430.91 amid several recent target cuts and downgrades.
• Operationally the company remains strong: Kinsale beat quarterly EPS ($5.81 vs. $5.30 est.), posted $483.3M revenue with a 26.9% net margin and 25.5% ROE, and has boosted its quarterly dividend to $0.25 and authorized a $250M share buyback while carrying low debt (D/E 0.11).

Kinsale Capital Group, Inc. (NYSE:KNSL - Get Free Report) shares hit a new 52-week low during trading on Wednesday . The company traded as low as $321.97 and last traded at $324.7930, with a volume of 74916 shares changing hands. The stock had previously closed at $326.50.

Analyst Ratings Changes

KNSL has been the subject of several research reports. Weiss Ratings restated a "hold (c)" rating on shares of Kinsale Capital Group in a research report on Monday, December 29th. Cantor Fitzgerald decreased their target price on Kinsale Capital Group from $422.00 to $360.00 and set a "neutral" rating on the stock in a research report on Tuesday, February 17th. JPMorgan Chase & Co. lowered their target price on Kinsale Capital Group from $450.00 to $410.00 and set a "neutral" rating on the stock in a research note on Monday, February 23rd. Wells Fargo & Company initiated coverage on Kinsale Capital Group in a report on Thursday, January 15th. They set an "overweight" rating and a $490.00 price target for the company. Finally, BMO Capital Markets downgraded Kinsale Capital Group from a "market perform" rating to an "underperform" rating and set a $348.00 price target for the company. in a research note on Wednesday, February 25th. Four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $430.91.

Kinsale Capital Group Stock Down 0.8%

The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.08 and a current ratio of 0.08. The stock has a market cap of $7.50 billion, a P/E ratio of 14.94, a P/E/G ratio of 1.07 and a beta of 1.01. The stock's fifty day simple moving average is $381.10 and its 200-day simple moving average is $399.77.

Kinsale Capital Group (NYSE:KNSL - Get Free Report) last announced its earnings results on Thursday, February 12th. The financial services provider reported $5.81 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.30 by $0.51. Kinsale Capital Group had a net margin of 26.87% and a return on equity of 25.45%. The firm had revenue of $483.27 million for the quarter, compared to analyst estimates of $467.66 million. During the same quarter in the prior year, the business posted $4.62 EPS. As a group, research analysts forecast that Kinsale Capital Group, Inc. will post 17.72 earnings per share for the current fiscal year.

Kinsale Capital Group Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 12th. Shareholders of record on Thursday, February 26th were paid a dividend of $0.25 per share. This is a boost from Kinsale Capital Group's previous quarterly dividend of $0.17. The ex-dividend date was Thursday, February 26th. This represents a $1.00 dividend on an annualized basis and a yield of 0.3%. Kinsale Capital Group's dividend payout ratio is 4.61%.

Kinsale Capital Group declared that its board has approved a share buyback program on Thursday, December 11th that authorizes the company to buyback $250.00 million in outstanding shares. This buyback authorization authorizes the financial services provider to reacquire up to 2.8% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its shares are undervalued.

Institutional Trading of Kinsale Capital Group

A number of institutional investors have recently modified their holdings of KNSL. V Square Quantitative Management LLC acquired a new position in Kinsale Capital Group in the fourth quarter valued at about $25,000. Bayban bought a new position in shares of Kinsale Capital Group in the 4th quarter valued at $25,000. eCIO Inc. bought a new position in shares of Kinsale Capital Group in the 4th quarter valued at $29,000. International Assets Investment Management LLC acquired a new position in shares of Kinsale Capital Group during the 4th quarter worth $29,000. Finally, Johnson Financial Group Inc. lifted its position in shares of Kinsale Capital Group by 257.1% during the 3rd quarter. Johnson Financial Group Inc. now owns 75 shares of the financial services provider's stock worth $32,000 after buying an additional 54 shares during the last quarter. 85.36% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.