Don Dion
August 17, 2016
Don Dion @ Inland Management
Chief Executive Officer at Inland Manaagement

Kinsale Set to Move Higher on Quiet Period Expiration

Look for Kinsale Property and Casualty (KNSL) to move higher next Tuesday following the expiration of the company’s Quiet Period on August 22, 2016. When the quiet period expires on Monday, Kinsale’s underwriters will have their first opportunity to weigh in on the firm’s recent IPO and all indications suggest that those reports will be very positive. We’re getting long Kinsale this week and I suggest that you do, too.

 Kinsale stock has performed well since the company’s IPO on July 28. The company has a strong balance sheet and continued growth. Backing the firm are very strong underwriters like J.P. Morgan Securities, RBC Capital Markets, and SunTrust Robinson Humphrey. We’re strong believers that these underwriters will come out in strong support of the firm once the quiet period expires and that their vote of confidence will push the stock higher.

 Here’s a couple of the reasons we’ve been following the Kinsale IPO and feel confident the underwriters will be positive: 

-       The Kinsale Capital Group IPO was expected to price within the $14 to $16 price range. The stock ended up pricing at the high end of this range: $16.

-       Since the IPO, Kinsale has traded as high as $19.99. This kind of strong upward momentum we look for following an IPO.

 We see this week as an excellent opportunity to buy ahead of Kinsale’s Quiet Period expiration. We believe that Kinsale’s stock price will move higher when underwriter reports are released next Tuesday. We are currently long Kinsale and think that the remainder of this week is the right time to get long shares of this strong IPO.


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