Thomas Newgarden, a director at Kingstone Companies, Inc. (NASDAQ:KINS), has recently increased his stake in the company through a series of stock purchases. According to a recent filing, Newgarden acquired a total of 15,112 shares over three consecutive days, bringing his total holdings to 24,726 shares.
The transactions took place between November 19 and November 21, with purchase prices ranging from $11.94 to $13.45 per share. The total value of these acquisitions amounts to approximately $194,537. Notably, the shares include 6,114 unvested shares received as director fees, which are set to vest on January 2, 2025, subject to certain conditions.
These strategic acquisitions reflect Newgarden's continued confidence in Kingstone Companies, a firm specializing in fire, marine, and casualty insurance.
In other recent news, Kingstone Companies reported record-breaking Q3 results, marking the highest quarterly income since its 2009 acquisition. The company witnessed a 40% growth rate in core personal lines and a significant increase in premiums and profitability. Direct written premiums for core personal lines saw a 43% boost, with new business accounting for 27% of total premiums. Kingstone also expects an incremental premium of $25 million to $30 million in 2024 due to market dislocation.
The company provided updated guidance for the coming years, reflecting a positive outlook on its growth trajectory and financial health. For 2024, Kingstone anticipates a core business direct premiums written growth of 25%-35%, a GAAP combined ratio of 79%-83%, and EPS of $1.40-$1.70. Moving into 2025, the company projects growth of 15%-25%, a GAAP combined ratio of 82%-86%, and EPS of $1.60-$2.00.
Investment income for Q3 2024 increased by 14% to $1.7 million, due to a shift towards corporate bonds. Kingstone also succeeded in selling 1.1 million shares at $8.48 each, using the proceeds to reduce its debt to $10 million. Amidst these developments, the company maintains a focus on debt reduction and maximizing earnings.
InvestingPro Insights
Thomas Newgarden's recent stock purchases align with several positive indicators for Kingstone Companies (NASDAQ:KINS). According to InvestingPro data, KINS has shown impressive price performance, with a 389.44% total return over the past year and a substantial 175.79% return in the last six months. This strong momentum is further evidenced by the stock trading near its 52-week high, with the current price at 97.08% of that peak.
The company's financial health appears robust, with a P/E ratio of 9.42, suggesting the stock may be undervalued relative to its earnings. Additionally, KINS has demonstrated profitability over the last twelve months, and analysts predict the company will remain profitable this year. These factors may have influenced Newgarden's decision to increase his stake.
InvestingPro Tips highlight that KINS has experienced significant returns over various time frames, including the last week, month, and three months. This consistent upward trend could indicate growing investor confidence in the company's prospects. However, it's worth noting that the RSI suggests the stock may be in overbought territory, which potential investors should consider.
For those interested in a deeper analysis, InvestingPro offers 12 additional tips for KINS, providing a more comprehensive view of the company's financial position and market performance.
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