Kingsway Financial Services Inc. (NYSE:KFS) reported that its Chief Financial Officer and Executive Vice President, Kent A. Hansen, has recently acquired additional shares in the company. According to the latest SEC filing, Hansen purchased 185 shares of common stock at a price of $8.44 per share, totaling approximately $1,561.
The transaction, which took place on April 15, 2024, was part of the company's Employee Share Purchase Plan (ESPP). Under this plan, eligible employees can allocate up to 5% of their adjusted salary to purchase company stock. 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 through a registered stockbroker as soon as administratively feasible after the contributions are made.
Following this purchase, Hansen's stake in the company has increased to a total of 124,406 shares. This includes 10,918 shares of restricted stock granted on December 3, 2021, 16,740 shares of restricted stock granted on December 15, 2022, and 21,306 shares of restricted stock granted on March 26, 2024.
Investors often monitor insider buying and selling as it can provide insights into how executives view the company's stock value and future prospects. Hansen's recent acquisition might be seen as a sign of confidence in the financial services firm's future performance.
Kingsway Financial Services is a holding company functioning in the insurance industry and is incorporated in Delaware with headquarters in Chicago, Illinois. The company's shares are traded on the New York Stock Exchange under the ticker symbol KFS.
InvestingPro Insights
As investors consider the implications of the recent insider buying activity at Kingsway Financial Services Inc., it's useful to look at some key metrics and insights from InvestingPro that could provide a broader context. The company's market capitalization currently stands at $230.62 million, reflecting the market's valuation of the firm. Despite a challenging market, Kingsway Financial Services has shown a strong return over the last five years, indicating resilience and potential long-term growth, which is an InvestingPro Tip worth noting.
Another aspect for investors to consider is the company's profitability. Kingsway Financial Services has been profitable over the last twelve months, which aligns with the confidence shown by CFO Kent A. Hansen's additional share acquisition. The company's Price to Book (P/B) ratio is 8.54 as of the last twelve months ending Q4 2023, which suggests that the stock is trading at a high multiple of its book value – an InvestingPro Tip that indicates the market is assigning a premium to the company's assets relative to its share price.
Moreover, the revenue growth for Kingsway Financial Services has been positive, with a 13.31% increase over the last twelve months as of Q4 2023. This growth trajectory could be a signal of the company's ability to expand its operations and increase its market share within the insurance industry.
For investors interested in deeper analysis and additional InvestingPro Tips for Kingsway Financial Services, there are more insights available at InvestingPro. Plus, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a comprehensive list of 5 additional InvestingPro Tips for informed decision-making.
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