John Taylor Maloney Fitzgerald, the President and CEO of Kingsway Financial Services Inc. (NYSE:KFS), has acquired additional shares of the company, according to a recent SEC filing. The executive purchased 294 shares of common stock at a price of $8.49 per share, totaling approximately $2,496.
The transaction took place on March 18, 2024, and was reported in a Form 4 document filed with the Securities and Exchange Commission. This purchase is part of the company's Employee Share Purchase Plan (ESPP), which allows eligible employees to allocate up to 5% of their adjusted salary to buy company shares. Kingsway America Inc., a subsidiary, matches 100% of the contributions made by employees who have been with the company for at least 12 months. The shares are then bought on the open market by the plan's administrator.
Following this transaction, Fitzgerald's direct holdings in Kingsway Financial Services have increased to 1,785,916 shares. This figure includes 500,000 shares of restricted stock issued on September 5, 2018, and another 500,000 shares of restricted stock granted on March 31, 2021. The CEO also holds indirect ownership through various trusts, with 20,000 shares each in the Trust-GEF, Trust-LTF, and Trust-MPF.
The purchase by the CEO underscores his ongoing commitment to the company and reflects confidence in the future of Kingsway Financial Services. The insurance firm, which specializes in fire, marine, and casualty insurance, is headquartered in Chicago, Illinois, and operates under the laws of Delaware.
InvestingPro Insights
Following the recent acquisition of shares by John Taylor Maloney Fitzgerald, President and CEO of Kingsway Financial Services Inc. (NYSE:KFS), the company's financial health and stock performance offer additional context for investors. As per InvestingPro, Kingsway Financial Services is trading at a high Price / Book multiple of 8.3, suggesting a premium valuation compared to the book value of its assets as of the last twelve months ending Q4 2023.
Moreover, the company has demonstrated profitability over the last twelve months, with a Gross Profit Margin of 69.57%, indicating effective cost management and a solid competitive position in the insurance sector. Despite the high P/E Ratio (Adjusted) of -101.05, which may raise concerns, the company's return on assets stands at 9.94%, reflecting efficient use of its assets in generating earnings.
InvestingPro Tips also highlight that Kingsway Financial Services does not pay a dividend, which could be a consideration for income-focused investors. However, the company has shown a strong return over the last five years, which may appeal to growth-oriented shareholders. For those looking to explore further, there are additional InvestingPro Tips available, providing deeper insights into the company's performance and potential investment opportunities.
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