John Taylor Maloney Fitzgerald, the President and CEO of Kingsway Financial Services Inc. (NYSE:KFS), recently acquired additional shares of the company. According to a regulatory filing, Fitzgerald purchased 284 shares of common stock on October 15 at a price of $8.81 per share. This transaction totals approximately $2,502.
Following this purchase, Fitzgerald directly owns 1,525,192 shares of Kingsway Financial. Additionally, he holds indirect ownership of 20,000 shares each in three separate trusts: Trust-GEF, Trust-LTF, and Trust-MPF.
The shares were acquired through the Kingsway America Inc. Employee Share Purchase Plan, where eligible employees can contribute up to 5% of their adjusted salary, matched 100% by the company, to purchase company shares on the open market.
In other recent news, Kingsway Financial Services has broadened its portfolio through the acquisition of Image Solutions, a North Carolina-based IT managed services provider. The deal, valued at $19.5 million, adds $9.8 million in annual unaudited revenue and $3.1 million in annual unaudited adjusted EBITDA to Kingsway's financials. Kingsway anticipates that this acquisition will immediately augment its earnings.
The strategic fit of Image Solutions within Kingsway's Xcelerator portfolio was underscored by J.T. Fitzgerald, President and CEO of Kingsway. Davide Zanchi, Kingsway's Operator-in-Residence, is slated to take over as CEO of Image Solutions. The company's founder, Garrett Williams, will remain as an advisor during the transition period.
Image Solutions, founded in 2003, has transitioned from an IT equipment distributor to a comprehensive IT services provider, boasting approximately 85% recurring revenue, low customer churn, and robust margins. The deal was structured as a purchase of all issued and outstanding membership interests in Image Solutions, with financing provided by Avidbank.
These developments are recent, and further details of the transaction will be discussed in an upcoming conference call. Kingsway has not provided any future expectations regarding the acquisition.
InvestingPro Insights
Adding context to John Taylor Maloney Fitzgerald's recent share acquisition, Kingsway Financial Services Inc. (NYSE:KFS) currently has a market capitalization of $250.02 million. The company's stock has shown resilience, with a 25.39% price total return over the past year, outperforming many of its peers.
InvestingPro Tips highlight that KFS's stock price often moves in the opposite direction of the market, which could be seen as a potential hedge in volatile market conditions. Additionally, the company has demonstrated a strong return over the last five years, aligning with Fitzgerald's continued investment in the company.
However, it's worth noting that KFS is not currently profitable over the last twelve months, with a negative P/E ratio of -58.0. This metric suggests that investors, including Fitzgerald, may be betting on the company's future growth potential rather than its current earnings.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for KFS, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.