In a recent transaction, Kent A. Hansen, the Chief Financial Officer and Executive Vice President of Kingsway Financial Services Inc. (NYSE:KFS), purchased shares in the company. The transaction, which took place on April 1, 2024, involved the acquisition of 189 shares of common stock at a price of $8.27 per share, totaling approximately $1,563.
The shares were acquired under the Kingsway America Inc. Employee Share Purchase Plan (ESPP), which allows eligible employees to contribute up to 5% of their adjusted salary. The company matches 100% of the employee's contributions once they have been with Kingsway America Inc. and its subsidiaries for 12 months. The shares are then bought on the open market by the ESPP's administrator through a registered stockbroker.
Following this transaction, Hansen's total ownership in Kingsway Financial Services Inc. has increased to 124,221 shares. This figure includes 10,918 shares of restricted stock granted on December 3, 2021, 16,740 shares granted on December 15, 2022, and 21,306 shares granted on March 26, 2024.
Investors often monitor insider buying as it can be a sign that executives are confident in the company's future prospects. The purchase by Hansen aligns with this view and reflects a commitment to the company by a high-ranking executive.
Kingsway Financial Services Inc., headquartered in Chicago, Illinois, is a holding company functioning in the insurance industry. The company's shares are traded on the New York Stock Exchange under the ticker symbol KFS.
InvestingPro Insights
As investors digest the recent insider buying at Kingsway Financial Services Inc. (NYSE:KFS), it's worth noting some key metrics that could influence their perception of the company's value. Kingsway's market capitalization stands at $227.3 million, reflecting its size in the competitive insurance industry landscape. Despite the insider confidence indicated by the recent purchase, the company's stock has experienced a downward trend over the last month with a price total return of -12.63%.
From a valuation perspective, Kingsway Financial Services is trading at a P/E ratio of 8.91, suggesting that the market has recognized its earnings potential relative to the share price. This is in stark contrast to the adjusted P/E ratio for the last twelve months as of Q4 2023, which stands at -99.85, indicating volatility in earnings or potentially a one-off event that has affected profitability in that period.
One of the InvestingPro Tips highlights that the stock price often moves in the opposite direction of the market, a trend that may be appealing to investors looking for a contrarian bet or portfolio diversification. Additionally, Kingsway's Price/Book ratio of 8.2 is considered high, which could be a point of caution for value-focused investors. It's also worth noting that Kingsway does not pay a dividend, which may influence the investment strategy for income-seeking shareholders.
For those interested in a deeper dive into Kingsway Financial Services Inc., there are additional InvestingPro Tips available at https://www.investing.com/pro/KFS. Use the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights that could help inform your investment decisions.
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