In a recent transaction on May 15, Kingsway Financial Services Inc. (NYSE:KFS) CFO & EVP Kent A. Hansen acquired shares of the company's common stock, signaling confidence in the insurer's future prospects. The purchase, part of the company's Employee Share Purchase Plan, involved 194 shares at a price of $8.07 each, totaling $1,565.
The Employee Share Purchase Plan allows eligible employees to contribute up to 5% of their adjusted salary per payroll period. With a company match of 100% for employees with at least 12 months of service, the plan is designed to encourage employee ownership and align interests with shareholders. Shares are bought on the open market through a stockbroker, shortly after the contribution is made.
Hansen's latest acquisition increases his direct ownership in Kingsway Financial Services to 124,774 shares. This total includes 10,918 shares of restricted stock granted in December 2021, 16,740 shares granted in December 2022, and 21,306 shares granted in March 2024, as detailed in the footnotes of the SEC filing.
Investors often monitor insider transactions like these for insights into executives' perspectives on their company's valuation and outlook. Hansen's purchase adds to the narrative of insider confidence at Kingsway Financial Services, a company known for its fire, marine, and casualty insurance offerings.
InvestingPro Insights
As Kingsway Financial Services Inc. (NYSE:KFS) continues to navigate the market, real-time data from InvestingPro provides a nuanced view of the company's financial health. With a market capitalization of 221.98 million USD, Kingsway's size in the industry is modest yet notable. Despite not being profitable over the last twelve months, the company's gross profit margin stands strong at 68.2%, indicating a robust ability to control costs relative to revenue.
InvestingPro Tips highlight that Kingsway's stock price often moves in the opposite direction of the market, which could appeal to investors looking for a counter-cyclical asset in their portfolio. Additionally, the company's Price / Book multiple is high at 9.47 as of the last twelve months ending Q1 2024, suggesting that the market values the company's assets quite optimistically.
For those interested in further insights and metrics, InvestingPro offers additional tips that could help investors make more informed decisions about Kingsway Financial Services. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable resources. Currently, there are 5 additional InvestingPro Tips available, which delve deeper into the company's financial nuances and market behavior.
With the next earnings date set for August 1, 2024, investors will be watching closely to see if the company's strategic moves and insider confidence translate into improved financial performance.
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