CHICAGO—Kent A. Hansen, Chief Financial Officer and Executive Vice President of Kingsway Financial Services Inc. (NYSE:KFS), has acquired additional shares of the company's common stock. According to a recent SEC filing, Hansen purchased 174 shares on November 15 at a price of $8.96 per share, totaling approximately $1,559.
These shares were acquired through the Kingsway America Inc. Employee Share Purchase Plan, which allows eligible employees to contribute up to 5% of their adjusted salary to purchase company shares, with Kingsway matching the contribution 100%. Following this transaction, Hansen now holds a total of 127,005 shares, including restricted stock grants from previous years.
In other recent news, Kingsway Financial Services Inc. reported a solid financial performance in the third quarter of 2024, with a near 10% increase in consolidated revenue year-over-year, amounting to $27.1 million. The company's adjusted EBITDA also rose by 28% to $2.9 million. A key development was the acquisition of Image Solutions for $19.5 million, which is expected to boost growth through expanded IT managed services.
In terms of segment performance, the Extended Warranty segment experienced a 3.4% revenue increase despite a rise in claims expense, while the KSX segment saw a 23% revenue surge, largely due to previous acquisitions. Kingsway's CFO, Kent Hansen, highlighted an increase in debt levels and a cash equivalent of $6.5 million as of September 30, 2024.
These recent developments demonstrate Kingsway's continued focus on growth through strategic acquisitions and a strong pipeline. The company remains optimistic about future growth potential, particularly from interest rate cuts and asset-light business services. However, it's worth noting that operational challenges and a delay in hardware installations for Image Solutions due to Hurricane Helene have been acknowledged.
InvestingPro Insights
Kent A. Hansen's recent purchase of Kingsway Financial Services Inc. (NYSE:KFS) shares aligns with some interesting trends revealed by InvestingPro data. The company's stock has shown a strong return over the last three months, with a 15.47% price total return. This positive momentum extends to the longer term, as KFS has delivered a robust 28.88% return over the past year.
Despite these gains, InvestingPro Tips indicate that KFS is not profitable over the last twelve months, with an adjusted operating income of -$1.09 million for the same period. This is reflected in the company's negative P/E ratio of -53.52. However, it's worth noting that KFS has maintained a healthy gross profit margin of 67.7%, suggesting strong core business performance despite overall profitability challenges.
Another InvestingPro Tip highlights that KFS is trading at a high Price / Book multiple, currently at 24.55. This could indicate investor optimism about the company's future prospects or potential overvaluation, depending on one's perspective.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond what's mentioned here. In fact, there are 6 more tips available for KFS on the InvestingPro platform, providing a deeper understanding of the company's financial health and market position.
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