KINGSTON, NY - Kingstone Companies, Inc. (NASDAQ:KINS), a regional property and casualty insurance holding company, is slated to be included in the Russell Microcap® Index starting July 1, 2024, as per the preliminary list of additions from FTSE Russell announced last Friday.
The annual reconstitution of the Russell U.S. Indexes, which took place on April 30, 2024, is designed to reflect the largest 4,000 U.S. stocks by market capitalization. Inclusion in the Russell Microcap® Index guarantees membership in corresponding growth and value style indexes for one year. FTSE Russell determines the index membership based on objective market-capitalization rankings and style attributes.
Meryl Golden, CEO of Kingstone, commented on the inclusion as a significant achievement for the company, indicating it as a testament to their progress. Golden anticipates that the inclusion in the index will elevate the company's equity profile, attract more institutional investors, and enhance stockholder liquidity.
The Russell Microcap® Index is part of FTSE Russell, a prominent global index provider. The indexes are commonly utilized by investment managers and institutional investors for creating index funds and as active investment strategy benchmarks.
Kingstone, headquartered in New York, operates through Kingstone Insurance Company ("KICO"), which provides personal and commercial auto insurance predominantly in New York and is licensed across several northeastern states. In 2023, KICO ranked as the 15th largest provider of homeowners insurance in New York.
This news is based on a press release statement.
InvestingPro Insights
KINGSTON, NY - As Kingstone Companies, Inc. (NASDAQ:KINS) prepares to join the Russell Microcap® Index, investors are closely monitoring the company's financial health and market performance. Recent data from InvestingPro shows that Kingstone has a market capitalization of $52.84 million and is trading at an earnings multiple of 167.59, which indicates a high P/E ratio given its near-term earnings growth. This aligns with the InvestingPro Tips that highlight the company's high earnings multiple and P/E ratio relative to near-term earnings growth.
Despite these valuation concerns, Kingstone has demonstrated strong returns, with a 1-year price total return of 296.71% and significant price upticks in shorter time frames, including a 15.0% return over the last month. This robust performance is also reflected in the company's stock price, which is at 92.93% of its 52-week high.
However, it's important to note that Kingstone has been grappling with challenges, such as weak gross profit margins, which stood at 7.14% over the last twelve months as of Q1 2024, and a forecasted sales decline in the current year. Additionally, the company's short-term obligations exceed its liquid assets, which could pose liquidity risks.
For investors seeking more comprehensive analysis, there are over 10 additional InvestingPro Tips available, including insights on profitability, dividend policies, and analyst expectations. By using the promo code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription to gain access to these valuable insights and make more informed investment decisions.
The anticipated index inclusion and recent financial metrics will be key factors for investors to consider as they assess Kingstone's potential in their portfolios. With the company's next earnings date set for August 8, 2024, stakeholders will be eager to see how these factors play out in the company's financial results and future outlook.
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