Is this the right time to exit from Skyward Specialty Insurance Group Inc (SKWD)?

Company Overview

Skyward Specialty Insurance Group Inc (SKWD) is a developing specialty insurance provider that offers non-admitted and admitted business P&C products and solutions, mostly in the United States.

Initial Public Offering

The company had launched its IPO on January 13^th, 2023, under the ticker SKWD and had sold approximately 8,500,000 shares at $15/share. We had covered this IPO in our ‘Kalkine IPO Report’ on January 12, 2023 and had concluded that this IPO was “Attractive” given its financial performance in nine months ended September 30, 2022, liquidity and capital resources, and rapidly growing specialty insurance company.

Price Chart (as on January 17,2023). Source: REFINITIV, Analysis by Kalkine Group

Conclusion

Investors who have invested into this IPO can consider ‘Exiting’ from their position at the current price of USD 19.48 as on January 17^th, 2023, given:

• Decent gains: The stock has moved up more than ~29.86% from its IPO offering price of $15.00 per share.
• Interest rate Risk: SKWD is prone to market fluctuations in all the capital markets that the company invests its investments in as the previous year has been a downward trending year for both fixed income and equity markets. Ongoing recession fear in the global market could keep the capital market and money marker quite volatile near-term.
  

*The reference data in this report has been partly sourced from Refinitiv.

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