Timothy P. McFadden, a director at Kingstone Companies, Inc. (NASDAQ:KINS), recently acquired 500 shares of the company. The shares were purchased on November 15 at a price of $10.61 each, amounting to a total transaction value of $5,305. Following this acquisition, McFadden holds a total of 103,382 shares, which includes 24,883 unvested shares received as director fees. These unvested shares are set to vest on January 2, 2025, with provisions for earlier vesting under certain circumstances.
In other recent news, Kingstone Companies, Inc. reported record Q3 results, marking its highest quarterly income since 2009. The company experienced a 40% growth rate in core personal lines and saw a significant increase in premiums. Direct written premiums for core personal lines rose by 43%, with new business accounting for 27% of total premiums. Additionally, Kingstone anticipates $25 million to $30 million in incremental premium in 2024 due to market dislocation.
The company's updated guidance predicts core business direct premiums written growth of 25%-35% and an EPS of $1.40-$1.70 for 2024. Kingstone's net income for Q3 2024 was $7 million, contributing to a year-to-date net income of $12.9 million. The combined ratio improved to 72%, with a 37.6-point enhancement in the accident year loss ratio. Investment income also increased by 14% to $1.7 million, reflecting strategic adjustments in investment portfolio management.
These recent developments suggest that Kingstone Companies is on a positive growth trajectory. However, it is important to note that the company's future performance will depend on a variety of factors, including market conditions and the effectiveness of its underwriting and investment strategies.
InvestingPro Insights
Timothy P. McFadden's recent purchase of Kingstone Companies, Inc. (NASDAQ:KINS) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock has shown remarkable performance, with a 351.88% price total return over the past year and a staggering 141.61% return in the last six months. This strong momentum is reflected in an InvestingPro Tip, which notes the "high return over the last year" for KINS.
Despite the impressive stock performance, Kingstone Companies trades at a relatively modest P/E ratio of 7.59, suggesting potential undervaluation. This is particularly interesting given that InvestingPro Tips indicate that "net income is expected to grow this year" and "analysts predict the company will be profitable this year."
However, investors should be aware that KINS "suffers from weak gross profit margins," with the latest data showing a gross profit margin of 20.34% for the last twelve months. Additionally, the stock "generally trades with high price volatility," which could present both opportunities and risks for investors.
For those seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Kingstone Companies, providing a deeper understanding of the company's financial health and market position.
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