In recent transactions, Kingsway Financial Services Inc. (NYSE:KFS) saw significant stock sales by Joseph Stilwell and related entities. On November 19, Stilwell Activist Investments, L.P. sold 22,387 shares, and Stilwell Activist Fund, L.P. sold 2,613 shares, both at a price of $8.7808 per share. The total value of these transactions amounted to $219,519. Joseph Stilwell, a director and ten percent owner, retains indirect ownership through his role in managing Stilwell Value LLC, the general partner of these entities.
In other recent news, Kingsway Financial Services Inc. demonstrated a strong performance in Q3 2024, with significant growth and strategic acquisitions. The company reported nearly a 10% increase in consolidated revenue, reaching $27.1 million, and a 28% rise in adjusted EBITDA to $2.9 million. The acquisition of Image Solutions for $19.5 million was a notable development of the quarter, expected to enhance growth through expanded IT managed services.
Despite a rise in claims expense, the Extended Warranty segment saw a 3.4% revenue increase, with the KSX segment experiencing a 23% revenue surge, attributed to previous acquisitions. CFO Kent Hansen highlighted the company's financing structure for acquisitions and an increase in debt levels, balanced by cash and equivalents at $6.5 million.
These recent developments indicate Kingsway's ongoing commitment to growth through acquisitions, with a strong pipeline and a focus on asset-light business services and vertical market software. Despite operational challenges and the impact of Hurricane Helene, the company maintains a positive outlook on future growth, potentially benefiting from interest rate cuts.
InvestingPro Insights
To provide additional context to the recent stock sales by Joseph Stilwell and related entities, let's examine some key financial metrics and insights for Kingsway Financial Services Inc. (NYSE:KFS).
According to InvestingPro data, Kingsway Financial Services has a market capitalization of $248.16 million USD. The company's stock has shown strong performance over the past year, with a 1-year price total return of 27.3% as of the most recent data. This positive trend aligns with one of the InvestingPro Tips, which notes that KFS has demonstrated a "Strong return over the last five years."
Despite the recent insider sales, it's worth noting that the stock is currently trading at 94.05% of its 52-week high, indicating that it remains close to its peak valuation over the past year. This could suggest that the insider sales might be part of a regular portfolio rebalancing rather than a lack of confidence in the company's prospects.
However, investors should be aware that Kingsway Financial Services is currently not profitable over the last twelve months, as highlighted by another InvestingPro Tip. This is reflected in the company's negative P/E ratio of -54.55 for the last twelve months as of Q3 2024. Additionally, the company does not pay a dividend to shareholders, which may be a consideration for income-focused investors.
It's important to note that these insights are just a snapshot of the company's financial situation. InvestingPro offers additional tips and in-depth analysis for those seeking a more comprehensive understanding of Kingsway Financial Services' financial health and market position.
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