Kent A. Hansen, the Chief Financial Officer and Executive Vice President of Kingsway Financial Services Inc. (NYSE:KFS), recently acquired shares in the company. According to a recent filing, Hansen purchased 178 shares of common stock on October 15 at a price of $8.81 per share, amounting to a total transaction value of $1,568.
This acquisition was made under the Kingsway America Inc. Employee Share Purchase Plan. The plan allows eligible employees to contribute up to 5% of their adjusted salary each payroll period, with the company matching 100% of the employee's contribution, provided they have been with Kingsway America Inc. and its subsidiaries for at least 12 months. The shares are acquired on the open market by the administrator of the plan through a registered stockbroker.
Following this transaction, Hansen now directly owns 126,665 shares of Kingsway Financial Services Inc. This includes restricted stock granted over the past few years, with allocations in December 2021, December 2022, and March 2024.
In other recent news, Kingsway Financial Services Inc. has broadened its portfolio with the purchase of Image Solutions LLC, a North Carolina-based IT managed services provider. The acquisition, valued at $19.5 million, was financed through available cash and $7.75 million in debt financing. The transaction is expected to contribute $9.8 million in annual unaudited revenue and $3.1 million in annual unaudited adjusted EBITDA to Kingsway's financials, and the company anticipates the addition of Image Solutions will be immediately accretive to its earnings.
The deal was structured as a purchase of all issued and outstanding membership interests in Image Solutions, with Avidbank providing the financing. Kingsway's Operator-in-Residence, Davide Zanchi, is set to assume the role of CEO of Image Solutions, with the company's founder, Garrett Williams, remaining as an advisor during the transition period.
These are recent developments in the company's strategic expansion, with Kingsway's President and CEO, J.T. Fitzgerald, highlighting the strategic fit of Image Solutions within the company's Xcelerator portfolio. The acquisition of Image Solutions, which has a business model with approximately 85% recurring revenue, low customer churn, and strong margins, underscores Kingsway's commitment to diversifying its portfolio and enhancing its financial performance.
InvestingPro Insights
The recent share acquisition by CFO Kent A. Hansen aligns with Kingsway Financial Services Inc.'s (NYSE:KFS) current market position and financial performance. According to InvestingPro data, KFS has a market capitalization of $250.02 million, reflecting its status as a small-cap company in the financial services sector.
InvestingPro Tips highlight that KFS has not been profitable over the last twelve months, with a negative P/E ratio of -58.0. This context adds significance to Hansen's decision to increase his stake in the company, potentially signaling confidence in future profitability improvements.
Despite the lack of current profitability, KFS has demonstrated a strong return over the last five years, as noted by another InvestingPro Tip. This long-term performance may be a factor in the company's ability to attract and retain executive talent, as evidenced by Hansen's participation in the Employee Share Purchase Plan.
It's worth noting that KFS is trading at a high Price / Book multiple of 12.1, which could indicate investor optimism about the company's growth prospects or the value of its assets. This metric, combined with the stock's recent performance—showing a 25.39% price total return over the past year—suggests that market sentiment remains positive despite current profitability challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are several more InvestingPro Tips available for KFS, which could provide valuable context for understanding the company's financial position and market dynamics.
Kent A. Hansen, the Chief Financial Officer and Executive Vice President of Kingsway Financial Services Inc. (NYSE:KFS), recently acquired shares in the company. According to a recent filing, Hansen purchased 178 shares of common stock on October 15 at a price of $8.81 per share, amounting to a total transaction value of $1,568.
This acquisition was made under the Kingsway America Inc. Employee Share Purchase Plan. The plan allows eligible employees to contribute up to 5% of their adjusted salary each payroll period, with the company matching 100% of the employee's contribution, provided they have been with Kingsway America Inc. and its subsidiaries for at least 12 months. The shares are acquired on the open market by the administrator of the plan through a registered stockbroker.
Following this transaction, Hansen now directly owns 126,665 shares of Kingsway Financial Services Inc. This includes restricted stock granted over the past few years, with allocations in December 2021, December 2022, and March 2024.
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