John Taylor Maloney Fitzgerald, President and CEO of Kingsway Financial Services Inc. (NYSE:KFS), has made a recent purchase of company stock, signaling his ongoing commitment to the company. On April 1, 2024, Fitzgerald acquired 302 shares of Kingsway Financial Services Inc. at a price of $8.27 per share, amounting to a total investment of approximately $2,500.
This transaction was conducted under the company's Employee Share Purchase Plan, which allows eligible employees to contribute up to 5% of their adjusted salary to purchase shares. The company matches these employee contributions 100%, provided the employee has been with Kingsway America Inc. and its subsidiaries for a minimum of 12 months. Shares are then purchased on the open market through a registered stockbroker.
Following this transaction, Fitzgerald's direct holdings in Kingsway Financial have increased to 1,565,114 shares. This figure includes 500,000 shares of restricted stock that were granted to him on March 31, 2021.
Investors often monitor insider transactions such as these to gain insights into the confidence that company executives have in their firm's future prospects. The actions of insiders can be indicative of their belief in the company's value and potential for growth.
Kingsway Financial Services Inc. operates within the insurance sector, specializing in fire, marine, and casualty insurance, and is incorporated in Delaware. As of the date of the report, the company's shares are traded on the New York Stock Exchange under the ticker symbol KFS.
InvestingPro Insights
Amidst the recent insider stock purchase by the CEO of Kingsway Financial Services Inc. (NYSE:KFS), investors are evaluating the company's performance and potential. The latest metrics from InvestingPro provide a snapshot of the company's financial health and market position. With a market capitalization of $227.3 million, Kingsway Financial is a moderate-sized player in the insurance sector. The company's Price / Book ratio stands at a high 8.2, suggesting a premium market valuation relative to its book value, which may reflect investor confidence or a market pricing in future growth prospects.
On the profitability front, Kingsway Financial has been profitable over the last twelve months with a gross profit margin of 69.57%, indicating a strong ability to retain earnings from its revenue. However, the company's stock has seen a downturn over the past month, with a price total return of -12.63%. This decline may present a buying opportunity for investors who believe in the company's long-term value, especially considering the CEO's recent investment.
InvestingPro Tips highlight that Kingsway Financial does not pay a dividend, which could be a consideration for income-focused investors. Additionally, the stock price often moves in the opposite direction of the market, which could be an interesting dynamic for those looking to hedge or diversify their portfolio.
For those looking to delve deeper into Kingsway Financial's performance and gain more insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/KFS. Investors interested in a comprehensive analysis can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a total of 7 InvestingPro Tips for Kingsway Financial Services Inc.
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