How Much Of Kinsale Capital Group, Inc. (NYSE:KNSL) Do Insiders Own?

By
Simply Wall St
Published
May 20, 2022
NYSE:KNSL
Source: Shutterstock

If you want to know who really controls Kinsale Capital Group, Inc. (NYSE:KNSL), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Kinsale Capital Group is a pretty big company. It has a market capitalization of US$4.8b. Normally institutions would own a significant portion of a company this size. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Kinsale Capital Group.

Check out our latest analysis for Kinsale Capital Group

ownership-breakdown
NYSE:KNSL Ownership Breakdown May 20th 2022

What Does The Institutional Ownership Tell Us About Kinsale Capital Group?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Kinsale Capital Group. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Kinsale Capital Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NYSE:KNSL Earnings and Revenue Growth May 20th 2022

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Kinsale Capital Group. BlackRock, Inc. is currently the largest shareholder, with 10% of shares outstanding. With 9.7% and 9.2% of the shares outstanding respectively, The Vanguard Group, Inc. and Baron Capital Group, Inc. are the second and third largest shareholders. In addition, we found that Michael Kehoe, the CEO has 4.1% of the shares allocated to their name.

On further inspection, we found that more than half the company's shares are owned by the top 10 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Kinsale Capital Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own some shares in Kinsale Capital Group, Inc.. This is a big company, so it is good to see this level of alignment. Insiders own US$263m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 10% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Kinsale Capital Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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