Why You Should Check Out This Small-Cap Insurance Stock

KINS has chart support in place in the event of a post-earnings pullback

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When you think insurance companies, you'd be forgiven if Kingstone Companies, Inc. (NASDAQ: KINS) didn't jump to forefront of your mind. But the stock, on the other hand, should be on any investors' radar ahead of the company's earnings report later this week.

On Aug. 2, Kingstone declared a common stock dividend of $0.04 per share, which translates to a forward dividend of $0.16 and a dividend yield of 2.09%. KINS' dividend will be payable on September 15 to holders of record as of August 31. Additionally, the company is scheduled to report its second quarter earnings after the market closes on Thursday, August 12. In recent history, Kingstone has outperformed earnings expectations on two of its last four quarterly reports.

For the second quarter of 2020, Kingstone beat analysts’ estimates by a margin of $0.01, reporting an earnings per share (EPS) of $0.23. For the third quarter, the insurance company beat expectations by a margin of $0.18. However, the last two reports whiffed on their estimates, putting the stock in focus for Friday's trading. 

Kingstone stock is up 17% in 2021, and 32% year-over-year. Despite a 6.7% haircut the last three months, chart support has emerged at the shares' 200-day moving average. 

KINS Stock Chart

Overall, Kingstone Companies is a small but seemingly stable company. It's market cap is still under $100 million, meaning there's plenty of room for growth. Kingstone has maintained steady ready revenue growth in recent years, with the exception of a 10% decrease for fiscal 2020. Nonetheless, KINS' revenues have bounced back nicely and are currently up 56% since fiscal 2017. Moreover, Kingstone stock’s price-earnings ratio of 13.54 and forward price-earnings ratio of 12.44 suggest that KINS also has potential as a value play.

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