John Taylor Maloney Fitzgerald, the CEO and President of Kingsway Financial Services Inc. (NYSE:KFS), has recently acquired additional shares of the company's common stock. The transaction, which took place on May 30, 2024, involved Fitzgerald purchasing 308 shares at a price of $8.11 each, amounting to a total investment of $2,497.
This latest purchase by Fitzgerald is part of the company's Employee Share Purchase Plan (ESPP), which allows eligible employees to contribute up to 5% of their adjusted salary for each regular payroll period. Kingsway America Inc., a subsidiary of Kingsway Financial Services, matches the employee's contribution 100% if the employee has been with the company for at least 12 months. The shares are then bought on the open market through a registered stockbroker as soon as administratively feasible after the date of contribution.
Following this transaction, Fitzgerald's total direct ownership in Kingsway Financial Services Inc. stands at 1,566,307 shares, which includes 500,000 shares of restricted stock granted on March 31, 2021. Additionally, Fitzgerald has indirect ownership of 20,000 shares held in three separate trusts known as Trust-GEF, Trust-LTF, and Trust-MPF.
Investors often monitor the buying and selling activities of company insiders like CEOs, as these transactions can provide insights into the executives' confidence in the company's future prospects. With this purchase, Fitzgerald has reinforced his stake in Kingsway Financial, potentially signaling his belief in the company's value and future performance.
The stock purchase by Fitzgerald was disclosed in a Form 4 filing with the Securities and Exchange Commission and was made public on May 31, 2024.
InvestingPro Insights
As Kingsway Financial Services Inc. (NYSE:KFS) CEO John Taylor Maloney Fitzgerald increases his stake in the company, investors are given a glimpse into the executive's confidence in the firm's trajectory. To provide further context to this insider activity, let's consider some key metrics and insights from InvestingPro. With a market capitalization of 223.93 million USD, Kingsway exhibits a unique financial profile that warrants attention.
One notable InvestingPro Tip is that Kingsway Financial Services has not been profitable over the last twelve months, a fact that is echoed by its negative P/E ratio of -31.41. This could suggest that Fitzgerald's purchase is a long-term bet on the company's turnaround rather than a reflection of its current earnings. Additionally, the company is trading at a high Price / Book multiple of 9.49, which indicates that investors are paying a premium for the book value of the company's assets.
From a performance standpoint, Kingsway has experienced a modest revenue growth of 5.78% over the last twelve months as of Q1 2024. This contrasts with the -5.85% quarterly revenue growth in Q1 2024, highlighting some recent challenges. However, with a gross profit margin of 68.2%, the company maintains a strong ability to convert revenue into gross profit.
For those looking to dive deeper into Kingsway Financial Services' financials and gain additional insights, InvestingPro offers more tips to help investors make informed decisions. There are five additional InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/KFS. Moreover, users can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable information.
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