In a notable performance, Kingsway Financial Services Inc. (KFS) stock has reached a 52-week high, trading at $9.55. This peak reflects a significant uptrend for the company, which has seen a robust 1-year change of 22.81%. Investors have shown increased confidence in Kingsway's market position and growth prospects, propelling the stock to this new high. The 52-week milestone underscores the company's resilience and potential for sustained growth in a competitive financial services landscape.
In other recent news, Kingsway Financial Services Inc. has broadened its portfolio with a notable acquisition. The company purchased Image Solutions LLC, a North Carolina-based IT managed services provider, for $19.5 million. This recent development is significant as it adds $9.8 million in annual unaudited revenue and $3.1 million in annual unaudited adjusted EBITDA to Kingsway's financials. The company projects that this addition will have an immediate positive impact on its earnings.
The acquisition was financed through available cash and $7.75 million in debt financing. Kingsway's CEO, J.T. Fitzgerald, underscored the strategic alignment of Image Solutions within Kingsway's Xcelerator portfolio. Following the acquisition, Davide Zanchi, Kingsway's Operator-in-Residence, will assume the role of CEO of Image Solutions. The founder of Image Solutions, Garrett Williams, will remain as an advisor during the transition period.
This recent acquisition is a significant move for Kingsway Financial Services, demonstrating its commitment to growth and diversification. The company plans to delve into the transaction details further in an upcoming conference call.
InvestingPro Insights
Kingsway Financial Services Inc.'s recent stock performance aligns with several key metrics and trends identified by InvestingPro. The company's stock is indeed trading near its 52-week high, with a price that is 99.9% of its peak, confirming the article's observation. This is further supported by InvestingPro data showing strong returns over various timeframes, including a 13.75% gain in the past month and a 20.33% increase over the last year.
InvestingPro Tips highlight that KFS has demonstrated a strong return over the last three months and five years, indicating a consistent upward trajectory that extends beyond the recent 52-week high mentioned in the article. However, it's worth noting that despite the positive stock performance, the company is not profitable over the last twelve months, with a negative P/E ratio of -61.49.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide further insights into Kingsway Financial Services' market position and future prospects.
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