John Taylor Maloney Fitzgerald, the President and CEO of Kingsway Financial Services Inc. (NYSE:KFS), has recently purchased shares of the company's common stock, according to a new SEC filing. On May 15, 2024, Fitzgerald acquired 310 shares at a price of $8.07 per share, totaling an investment of $2,501.
This transaction is part of the company’s Employee Share Purchase Plan (ESPP), under which eligible employees can contribute up to 5% of their adjusted salary to purchase Kingsway Financial shares. The company matches 100% of these contributions for employees with at least 12 months of service. The shares are then purchased on the open market by the ESPP administrator through a registered stockbroker.
Following this recent acquisition, Fitzgerald's direct ownership in the company has increased to 1,565,999 shares, which includes 500,000 shares of restricted stock granted on March 31, 2021. Additionally, Fitzgerald has indirect ownership in 60,000 shares held in various trusts, reflecting a strong vested interest in the company's performance.
Investors often monitor insider transactions like these for insights into executive confidence in the company's prospects. The purchase by Kingsway Financial's CEO may be interpreted as a positive signal regarding the company's future.
InvestingPro Insights
As investors parse through the implications of John Taylor Maloney Fitzgerald's recent purchase of Kingsway Financial Services Inc. (NYSE:KFS) stock, several metrics provided by InvestingPro offer a deeper understanding of the company's financial landscape. With a market capitalization of $221.98 million, Kingsway Financial Services presents a unique profile in the market. The company's Price / Book ratio stands at 9.47 as of the last twelve months leading up to Q1 2024, which suggests a high valuation compared to the book value of its assets.
Despite the CEO's confidence, indicated by his stock purchase, InvestingPro data highlights that Kingsway Financial Services has not been profitable over the last twelve months, with a negative P/E ratio of -31.07. This is further emphasized by an adjusted P/E ratio for the same period of -60.55. Nevertheless, the company has demonstrated a strong return over the last five years, which may factor into the CEO's investment decision and could be a signal for potential long-term growth.
An InvestingPro Tip worth noting is that Kingsway Financial's stock price often moves in the opposite direction of the market. This counter-cyclical behavior could represent an opportunity for investors seeking to diversify their portfolio against market trends. Additionally, the company does not pay a dividend, which might be a consideration for income-focused investors. For those interested in exploring further, there are additional InvestingPro Tips available at InvestingPro, and users can use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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