In a report released today, Robert Farnam from Boenning & Scattergood maintained a Buy rating on Kingstone Companies Inc (KINS – Research Report), with a price target of $13. The company’s shares closed on Friday at $9.27, close to its 52-week low of $8.39.
“We believe the shares have been oversold and think the market has overreacted to the company needing to boost reserves after seeing deteriorating trends in a handful of older liability claims, mostly in the company’s modest commercial lines book rather than in its core personal lines book. While a concern, we believe the company has acted appropriately to the adverse liability claims trends by having an outside consultant review the claims operation, hiring an experienced Chief Claims Officer who reviewed all open liability claims, and, to be conservative, boosting reserves for all of them.”
According to TipRanks.com, Farnam has currently no stars on a ranking scale of 0-5 stars, with an average return of -9.7% and a 35.3% success rate. Farnam covers the Financial sector, focusing on stocks such as Argo Group International Holdings Ltd, 1347 Property Insurance Holdings Inc, and Hallmark Financial Services.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Kingstone Companies Inc with a $13 average price target.
Based on Kingstone Companies Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $7.34 million. In comparison, last year the company had a GAAP net loss of $2.72 million.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of KINS in relation to earlier this year.
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Kingstone Cos., Inc. operates as a holding company, which engages in the provision of property and casualty insurance policies to individuals and small businesses through its wholly owned subsidiary, Kingstone Insurance Company. It writes business exclusively through independent retail and wholesale agents and brokers.