Kingstone Stock Moves Above 50-Day SMA: What Should Investors Know?

Shares of Kingstone Companies KINS have been trading above its 50-day simple moving average (SMA), signaling a short-term bullish trend and making it an attractive option for investors from a technical perspective.

The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend. 

KINS Price Movement vs. 50-Day Moving Average

Kingstone Companies is the 12th largest homeowner insurer in New York, as accredited by the S&P, with a market share of 2.1% in 2024. Kingstone Companies is poised to capitalize on the more than $200 million market opportunity, with its competing carriers exiting the personal property market countrywide in July 2024.

Price Performance of KINS

Shares of KINS have gained 9.1% year to date, outperforming the Finance sector's return of 2.3% and the Zacks S&P 500 composite’s decline of 5.1%. The stock, however, underperformed the industry’s growth of 15.7%.

KINS Vs Industry, Sector & S&P YTD

Shares of another specialty insurer Heritage Insurance Holdings, Inc. HRTG have rallied 25% year to date while that of Kinsale Capital Group KNSL have gained 4.9% in the same time frame.

Heritage Insurance provides personal and commercial residential insurance products. Its focus on rate adequacy, selective underwriting and profit-oriented underwriting criteria while restricting new business in over-concentrated markets or products poises it well for growth. Heritage Insurance has strategically diversified its portfolio to achieve better risk distribution, claims trends and lower reinsurance costs.

A strong presence across the excess and supply (E&S) market in the United States and high retention rates stemming from contract renewals, continued market dislocation, improved submission flows and better pricing decisions poise Kinsale Capital for growth.

KINS Shares Are Expensive

KINS is trading at a premium to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 3.07X is higher than the industry average of 1.65X.

It also has a Value Score of A. Back-tested results have shown that stocks with a solid Value Score and a favorable Zacks Rank are the most attractive and their returns are better.

Shares of Heritage Insurance are trading at a multiple lower than the industry average while of Kinsale Capital are trading at a multiple higher than the industry average.

Optimistic Analyst Sentiment for KINS

The Zacks Consensus Estimate for 2025 and 2026 earnings suggests a 31% and 29% year-over-year increase, respectively. The company has a Growth Score of A. 

KINS expects 2025 earnings per share between $1.75 and $2.15, up from $1.45-$1.85 guided earlier.

The consensus estimate for 2025 and 2026 earnings has moved 0.6% and 2.1% north, respectively, in the past seven days. 

Kingstone Companies’ Growth Strategy

Kingstone Companies is well poised for growth, given its heightened focus on its core business and scaling back of unprofitable non-core businesses. The insurer only writes businesses that meet its underwriting standards and profit-margin objectives.

This Northeast regional property and casualty insurer has been successful in implementing a price increase ahead of inflation, matching prices to risks. KINS’ partnership with Earnix enhances its pricing capabilities and supports its strategic growth initiatives.

KINS expects direct written premiums in core business to grow between 15% and 25% in 2025.

The company has been successfully lowering its net underwriting expense ratio by driving higher average premiums and lowering commissions and staffing.
Kingstone Companies has a solid reinsurance program safeguarding its balance sheet.  It now expects a combined ratio between 81% and 85% in 2025, improved from 82%-86% guide earlier. KINS has strengthened its balance sheet by improving its cash balance while lowering debt. 

KINS’ Favorable Return on Capital

Return on equity in the trailing 12 months was 36.1%, higher than the industry average of 8.3%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders.

Kingstone Companies now expects ROE between 27% and 35% in 2025, up from 24-32% guided earlier.

Its return on invested capital (ROIC) has been improving for quite some time. This reflects KINS’ efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 30.7%, higher than the industry average of 6.4%.

What Should Be Your Approach Toward KINS Stock?

Kingstone Companies’ focus on growing its core business and strengthening its niche market position, improving pricing and combined ratio, expanding margins and delivering strong earnings bodes well for growth. Its VGM Score of A and raised guidance instill confidence in the stock.

The average target price of $14 reflects a 14.1% upside potential from its last closing price. 

Despite its expensive valuation, investors can add this Zacks Rank #1 (Strong Buy) stock to their portfolio. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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