Wells Fargo & Company Has Lowered Expectations for Kinsale Capital Group (NYSE:KNSL) Stock Price

Key Points

• Wells Fargo cut its price target on Kinsale from $447 to $420 but kept an "overweight" rating, while several other brokerages have lowered targets; the consensus price target is about $405.45 with an average rating of "Hold."
• Kinsale posted a quarter beat with $5.81 EPS vs. $5.30 expected and $483.3M revenue, and the board approved a $250M share buyback (≈2.8% of shares outstanding), signaling confidence in the stock.
• The stock recently traded around $355.55 (down ~0.2%), with a market cap of $8.23B and a P/E of 16.4, implying roughly an 18% upside to Wells Fargo's $420 target from current levels.

Kinsale Capital Group (NYSE:KNSL - Get Free Report) had its target price decreased by equities research analysts at Wells Fargo & Company from $447.00 to $420.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has an "overweight" rating on the financial services provider's stock. Wells Fargo & Company's price target indicates a potential upside of 18.13% from the company's current price.

A number of other brokerages have also weighed in on KNSL. JPMorgan Chase & Co. lowered their price objective on Kinsale Capital Group from $450.00 to $410.00 and set a "neutral" rating for the company in a research note on Monday, February 23rd. Jefferies Financial Group lowered Kinsale Capital Group from a "hold" rating to an "underperform" rating and cut their target price for the company from $392.00 to $312.00 in a research report on Thursday, March 19th. Morgan Stanley reiterated an "equal weight" rating and set a $350.00 target price (down from $450.00) on shares of Kinsale Capital Group in a research note on Monday. Wall Street Zen upgraded shares of Kinsale Capital Group from a "sell" rating to a "hold" rating in a research note on Saturday, April 4th. Finally, Truist Financial cut their price target on shares of Kinsale Capital Group from $510.00 to $450.00 and set a "buy" rating on the stock in a report on Tuesday, February 17th. Three analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $405.45.

Kinsale Capital Group Stock Down 0.2%

NYSE:KNSL traded down $0.87 on Thursday, reaching $355.55. The stock had a trading volume of 8,036 shares, compared to its average volume of 244,776. The company has a current ratio of 0.08, a quick ratio of 0.08 and a debt-to-equity ratio of 0.11. The company has a 50-day moving average of $368.20 and a 200 day moving average of $392.93. The stock has a market cap of $8.23 billion, a P/E ratio of 16.41, a price-to-earnings-growth ratio of 1.13 and a beta of 1.08. Kinsale Capital Group has a 12-month low of $321.97 and a 12-month high of $512.76.

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 return on equity of 25.45% and a net margin of 26.87%.The business had revenue of $483.27 million for the quarter, compared to analyst estimates of $467.66 million. During the same period in the previous year, the company earned $4.62 earnings per share. On average, research analysts predict that Kinsale Capital Group will post 17.72 earnings per share for the current year.

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

Institutional Investors Weigh In On Kinsale Capital Group

A number of institutional investors have recently made changes to their positions in KNSL. AQR Capital Management LLC raised its position in shares of Kinsale Capital Group by 76.2% during the 1st quarter. AQR Capital Management LLC now owns 835 shares of the financial services provider's stock valued at $397,000 after acquiring an additional 361 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in Kinsale Capital Group by 125.0% in the second quarter. Arrowstreet Capital Limited Partnership now owns 14,891 shares of the financial services provider's stock worth $7,206,000 after purchasing an additional 8,272 shares during the period. EverSource Wealth Advisors LLC increased its stake in Kinsale Capital Group by 72.9% during the second quarter. EverSource Wealth Advisors LLC now owns 102 shares of the financial services provider's stock valued at $49,000 after purchasing an additional 43 shares during the last quarter. Brown Advisory Inc. increased its stake in Kinsale Capital Group by 7.9% during the second quarter. Brown Advisory Inc. now owns 1,117 shares of the financial services provider's stock valued at $541,000 after purchasing an additional 82 shares during the last quarter. Finally, Jump Financial LLC raised its holdings in shares of Kinsale Capital Group by 136.9% during the second quarter. Jump Financial LLC now owns 1,097 shares of the financial services provider's stock worth $531,000 after purchasing an additional 634 shares during the period. 85.36% of the stock is currently owned by institutional investors.

About Kinsale Capital Group

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.

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