Traders Buy High Volume of Kinsale Capital Group Call Options (NYSE:KNSL)

Key Points

• Unusual options activity: Traders bought 2,378 Kinsale Capital Group call options, roughly 2,231% above the average volume of 102 contracts.
• Shares declined: KNSL fell 1.2% to $335.81, while the company reported quarterly EPS and revenue above analyst expectations and 16.8% year-over-year revenue growth.
• Analyst sentiment remains cautious: Morgan Stanley and Wells Fargo cut their price targets, and the stock carries an average “Reduce” rating with a consensus target of $357.67. Institutional investors own 85.36% of the shares.

Kinsale Capital Group, Inc. (NYSE:KNSL - Get Free Report) was the target of some unusual options trading on Wednesday. Traders purchased 2,378 call options on the stock. This represents an increase of approximately 2,231% compared to the average volume of 102 call options.

Kinsale Capital Group Trading Down 1.2%

Shares of KNSL stock traded down $4.16 during trading hours on Wednesday, reaching $335.81. The company had a trading volume of 12,675 shares, compared to its average volume of 267,911. Kinsale Capital Group has a 1-year low of $287.20 and a 1-year high of $473.14. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.09 and a quick ratio of 0.09. The firm has a market cap of $7.65 billion, a price-to-earnings ratio of 13.61, a P/E/G ratio of 1.07 and a beta of 0.88. The company has a 50 day moving average of $360.80 and a 200 day moving average of $340.72.

Kinsale Capital Group (NYSE:KNSL - Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The financial services provider reported $5.54 EPS for the quarter, topping analysts' consensus estimates of $5.11 by $0.43. The business had revenue of $548.52 million during the quarter, compared to analysts' expectations of $445.13 million. Kinsale Capital Group had a return on equity of 25.54% and a net margin of 28.49%. The firm's quarterly revenue was up 16.8% compared to the same quarter last year. During the same period in the previous year, the firm earned $4.78 earnings per share. On average, equities research analysts anticipate that Kinsale Capital Group will post 21.17 EPS for the current year.

Kinsale Capital Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, September 14th. Shareholders of record on Friday, August 28th were issued a dividend of $0.25 per share. The ex-dividend date was Friday, August 28th. This represents a $1.00 dividend on an annualized basis and a yield of 0.3%. Kinsale Capital Group's dividend payout ratio (DPR) is 4.05%.

Analyst Upgrades and Downgrades

KNSL has been the subject of several recent research reports. Morgan Stanley dropped their price objective on Kinsale Capital Group from $390.00 to $350.00 and set an "equal weight" rating for the company in a report on Tuesday, October 6th. Wells Fargo & Company reduced their target price on shares of Kinsale Capital Group from $377.00 to $348.00 and set an "equal weight" rating on the stock in a research note on Monday. Wall Street Zen raised shares of Kinsale Capital Group from a "sell" rating to a "hold" rating in a research note on Saturday, June 20th. Cantor Fitzgerald lifted their price target on shares of Kinsale Capital Group from $259.00 to $264.00 and gave the stock a "neutral" rating in a research report on Wednesday, October 7th. Finally, Weiss Ratings raised shares of Kinsale Capital Group from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, October 6th. One research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and an average price target of $357.67.

Hedge Funds Weigh In On Kinsale Capital Group

Several institutional investors have recently modified their holdings of KNSL. Bamco Inc. NY bought a new stake in shares of Kinsale Capital Group in the second quarter worth about $878,600,000. BlackRock Inc. bought a new position in shares of Kinsale Capital Group during the 2nd quarter valued at about $671,457,000. Bank of America Corp DE bought a new position in shares of Kinsale Capital Group during the 2nd quarter valued at about $69,470,000. Bank of New York Mellon Corp bought a new position in shares of Kinsale Capital Group during the 2nd quarter valued at about $45,595,000. Finally, Turtle Creek Asset Management Inc. grew its position in shares of Kinsale Capital Group by 47.6% in the 1st quarter. Turtle Creek Asset Management Inc. now owns 411,246 shares of the financial services provider's stock valued at $140,506,000 after purchasing an additional 132,576 shares during the period. 85.36% of the stock is currently owned by institutional investors and hedge funds.

About Kinsale Capital Group

Kinsale Capital Group, Inc is a specialty insurance company headquartered in Richmond, Virginia. Through its insurance subsidiaries, including Kinsale Insurance Company, the company provides commercial property and casualty insurance in the United States.

Kinsale focuses primarily on the excess and surplus lines market, which serves businesses with risks that may not be accommodated by standard insurance carriers. Its offerings include coverage for commercial property, general liability, professional liability, commercial auto, and other specialized risks.

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