In a recent transaction, Kent A. Hansen, the Chief Financial Officer (CFO) and Executive Vice President (EVP) of Kingsway Financial Services Inc. (NYSE:KFS), acquired additional shares of the company. The transaction, which took place on May 1, 2024, involved the purchase of 174 shares of common stock at a price of $8.97 per share, amounting to a total investment of $1,560.
The shares were bought as part of the Kingsway America Inc. Employee Share Purchase Plan (ESPP), a program that allows eligible employees to contribute up to 5% of their adjusted salary to purchase Kingsway Financial Services Inc. stock. The company matches 100% of the employee's contribution for those who have been with Kingsway America Inc. and its subsidiaries for at least 12 months. The newly acquired shares are then bought on the open market through a registered stockbroker, as soon as administratively feasible after the contributions are made.
Following this transaction, Hansen's direct ownership in the company has increased to a total of 124,580 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, as stated in the accompanying footnotes of the filing.
Kingsway Financial Services Inc., headquartered in Chicago, Illinois, is a holding company functioning in the insurance industry. The company's common stock is traded on the New York Stock Exchange under the ticker symbol NYSE:KFS. The recent share acquisition by the CFO reflects ongoing investment by company executives in Kingsway's financial future.
InvestingPro Insights
Amidst the backdrop of executive investment in Kingsway Financial Services Inc., the company's financial health and stock performance offer a nuanced picture for potential investors. With a market capitalization of $245.41 million, Kingsway presents itself as a mid-sized player in the insurance industry. The company's stock has demonstrated resilience, with a 1-year price total return of 3.85%, signaling a steady if not spectacular investment opportunity.
An InvestingPro Tip highlights that Kingsway Financial Services Inc. does not pay dividends, which could be a significant consideration for income-focused investors. However, the company has shown a strong return over the last five years, indicating potential for long-term capital appreciation rather than immediate income through dividends. Additionally, Kingsway's stock price often moves in the opposite direction of the market, which could provide a diversification benefit for investors seeking to hedge against market downturns.
From a valuation standpoint, Kingsway is trading at a high Price / Book multiple of 8.86 as of the last twelve months ending Q4 2023. This suggests that the market is pricing the company's assets at a premium, which could be reflective of investor confidence or a potential overvaluation, depending on future performance and market conditions. The company's P/E ratio, at 9.75, indicates a lower valuation relative to earnings than the adjusted P/E ratio for the same period, which stands at -107.81, a figure that warrants careful consideration by potential investors.
For those interested in a deeper dive into Kingsway Financial Services Inc.'s performance metrics and strategic positioning, InvestingPro offers additional insights. There are more InvestingPro Tips available for Kingsway Financial Services Inc., accessible at https://www.investing.com/pro/KFS. To access these tips and more detailed analytics, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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