Kent A. Hansen, Chief Financial Officer and Executive Vice President of Kingsway Financial Services Inc. (NYSE:KFS), recently acquired 166 shares of the company's common stock. The shares were purchased on October 30 at a price of $9.40 each, totaling $1,560. This acquisition was made under the Kingsway America Inc. Employee Share Purchase Plan. Following this transaction, Hansen holds a total of 126,831 shares, which includes various grants of restricted stock.
In other recent news, Kingsway Financial Services Inc. made headlines with its acquisition of Image Solutions LLC, a North Carolina-based IT managed services provider. The deal, which is worth $19.5 million, adds $9.8 million in annual unaudited revenue and $3.1 million in annual unaudited adjusted EBITDA to Kingsway's financials. Kingsway funded the transaction through available cash and $7.75 million in debt financing, provided by Avidbank.
The company anticipates that the addition of Image Solutions will be immediately accretive to its earnings. Kingsway's CEO, J.T. Fitzgerald, and Operator-in-Residence, Davide Zanchi, who is set to take over as CEO of Image Solutions, praised the acquisition, highlighting Image Solutions' consistent service, premium hardware offerings, and strong position in a stable and growing market.
These are the latest developments in Kingsway's strategic expansion, including its diverse portfolio in the extended warranty and business services industries.
InvestingPro Insights
Kent A. Hansen's recent purchase of Kingsway Financial Services Inc. (NYSE:KFS) shares aligns with several interesting financial metrics and trends revealed by InvestingPro data. The company's market capitalization stands at $249.46 million, indicating a relatively small-cap stock in the financial services sector.
One of the most striking InvestingPro Tips is that KFS's stock price often moves in the opposite direction of the market. This contrarian behavior could be attractive to investors seeking portfolio diversification. Additionally, the company has shown a strong return over the last five years, which may have influenced Hansen's decision to increase his stake.
Despite these positive indicators, it's worth noting that KFS is not currently profitable, with a negative P/E ratio of -57.36 for the last twelve months as of Q2 2024. The company is also trading at a high Price / Book multiple of 11.97, suggesting it may be overvalued relative to its book value.
Interestingly, KFS has demonstrated revenue growth, albeit modest, with a 0.51% increase over the last twelve months. The company's gross profit margin is robust at 67.66%, indicating efficient core operations. However, the operating income margin is slightly negative at -1.07%, reflecting challenges in overall profitability.
For investors considering KFS, it's important to note that the company does not pay a dividend, focusing instead on potential growth and reinvestment. The stock has shown positive momentum, with a 10.87% price return over the past month and an 18.91% return over the last year.
These insights are just a sample of the valuable information available through InvestingPro. The platform offers 15 additional tips for KFS, providing a more comprehensive analysis for potential investors.
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