In a remarkable display of resilience and growth, Kingsway Financial Services Inc. (KFS) stock has soared to a 52-week high, reaching a price level of $9.5. This peak reflects a significant uptrend for the company, which has seen an impressive 1-year change of 39.87%. Investors have shown increased confidence in Kingsway's strategic direction and financial health, as evidenced by the stock's robust performance over the past year. The company's ability to achieve such a high within a year's span underscores its potential and the positive sentiment surrounding its future prospects in the financial services industry.
In other recent news, Kingsway Financial Services Inc. has broadened its portfolio with the acquisition of Image Solutions LLC, a North Carolina-based IT managed services provider. The deal, valued at $19.5 million, is expected to add $9.8 million in annual unaudited revenue and $3.1 million in annual unaudited adjusted EBITDA to Kingsway's financials. Kingsway funded the purchase using available cash and $7.75 million in debt financing.
The company expects that the acquisition will have an immediate positive impact on its earnings. Image Solutions, which transformed from an IT equipment distributor to a comprehensive IT services provider, is known for its consistent service, premium hardware offerings, and strong market position. The company's current CEO, Davide Zanchi, is set to take over as CEO of Image Solutions, with the founder, Garrett Williams, continuing as an advisor during the transition.
These are the recent developments in Kingsway's business operations. The acquisition was executed as a purchase of all issued and outstanding membership interests in Image Solutions, with Avidbank providing the financing and Holland & Knight LLP acting as legal counsel to Kingsway. The details of the transaction will be discussed further in an upcoming conference call.
InvestingPro Insights
Kingsway Financial Services Inc.'s recent stock performance aligns with several key insights from InvestingPro. The company's stock is indeed trading near its 52-week high, with the current price at 96.2% of its peak. This corroborates the article's mention of KFS reaching a new high of $9.5. Additionally, InvestingPro data shows a strong 1-year price total return of 27.73%, supporting the article's statement of a 39.87% change over the past year.
InvestingPro Tips highlight that KFS has demonstrated a strong return over the last five years, which may contribute to investor confidence. However, it's worth noting that the company is not profitable over the last twelve months, with a negative P/E ratio of -60.32 for the last twelve months as of Q2 2024. This suggests that while the stock price is performing well, the company's profitability remains a challenge.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips that could provide further insights into Kingsway Financial Services Inc.'s financial position and market performance.
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