John Taylor Maloney Fitzgerald, the President and CEO of Kingsway Financial Services Inc. (NYSE:KFS), recently acquired 266 shares of the company's common stock. The shares were purchased at a price of $9.40 each, totaling approximately $2,500. This transaction was conducted under the Kingsway America Inc. Employee Share Purchase Plan, which allows eligible employees and the company to make contributions toward purchasing shares.
Following this acquisition, Fitzgerald holds a total of 1,525,458 shares directly. Additionally, he maintains indirect ownership of 20,000 shares each in three separate trusts. The acquisition reflects continued confidence in Kingsway Financial Services, a company engaged in the fire, marine, and casualty insurance sector.
In other recent news, Kingsway Financial Services Inc. has broadened its portfolio by acquiring North Carolina-based IT managed services provider, Image Solutions LLC. The deal, valued at $19.5 million, was funded through available cash and $7.75 million in debt financing. This acquisition adds $9.8 million in annual unaudited revenue and $3.1 million in annual unaudited adjusted EBITDA to Kingsway's financials, with the company expecting immediate accretion to its earnings.
Image Solutions, originally an IT equipment distributor, has grown into a comprehensive IT services provider since its inception in 2003. The company's business model includes approximately 85% recurring revenue, low customer churn, and robust margins. Kingsway's Operator-in-Residence, Davide Zanchi, will assume the role of CEO of Image Solutions, with the company's founder, Garrett Williams, serving as an advisor during the transition.
The transaction involved the purchase of all issued and outstanding membership interests in Image Solutions, with Avidbank providing the financing for the acquisition. These recent developments highlight Kingsway's strategic expansion efforts in the IT sector.
InvestingPro Insights
John Taylor Maloney Fitzgerald'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 insurance sector.
One of the most striking InvestingPro Tips is that KFS's stock price often moves in the opposite direction of the market, which could be attractive for investors seeking portfolio diversification. This characteristic might explain why the CEO is continuing to accumulate shares despite broader market fluctuations.
Another noteworthy point is that KFS is trading at a high Price / Book multiple of 11.97. This suggests that investors are placing a premium on the company's assets, potentially due to growth expectations or the quality of its insurance portfolio.
While the company is not currently profitable over the last twelve months, as indicated by another InvestingPro Tip, it's worth noting that KFS has shown a strong return over the last five years. This long-term performance might be a factor in Fitzgerald's decision to increase his stake in the company.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 11 more tips available for KFS on the InvestingPro platform, providing a deeper understanding of the company's financial health and market position.
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