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Strength Seen in Kingstone Companies (KINS): Can Its 6.6% Jump Turn into More Strength?

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Kingstone Companies, Inc (KINS - Free Report) shares rallied 6.6% in the last trading session to close at $9.58. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.5% gain over the past four weeks.

Kingstone’s growth strategy encompasses reducing non-core business, managing costs, achieving strong rate and manage exposure to a hard reinsurance pricing environment.

Recently, this Northeast regional property and casualty insurance holding company refinanced its outstanding 12% Senior Notes in the aggregate principal amount of $19.95 million due on Dec. 30, 2024.  This transaction lowers debt By 25% and extends maturity to June 2026. This will also allow the company lower the amount of the debt and the corresponding interest expense and enhance shareholders value. This refinancing will help KINS increase focus on successfully executing the profitable growth opportunities currently underway. 

The company now expects bottom line of $1.00 to $1.30 and ROE of 26% to 34% for 2024  and basic EPS of $1.20 to $1.60 and ROE of 22% to 30% for 2025.

This company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +151.9%. Revenues are expected to be $39.4 million, up 15.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Kingstone Companies, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on KINS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Kingstone Companies is part of the Zacks Insurance - Property and Casualty industry. American Coastal Insurance (ACIC - Free Report) , another stock in the same industry, closed the last trading session 1.4% lower at $11.36. ACIC has returned 3.8% in the past month.

For American Coastal, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.15. This represents a change of -55.9% from what the company reported a year ago. American Coastal currently has a Zacks Rank of #4 (Sell).


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