On September 13, 2023, Director Charles Frischer of Kingsway Financial Services Inc (KFS, Financial) purchased 4,100 shares of the company, adding to his growing stake in the firm. This move is noteworthy as insider buying can often be a positive signal about a company's future prospects.
Charles Frischer is a seasoned financial professional with a deep understanding of the financial services industry. His decision to increase his stake in Kingsway Financial Services Inc is a strong vote of confidence in the company's future.
Kingsway Financial Services Inc is a holding company functioning in the insurance industry. It operates through two segments: Extended Warranty and Leased Real Estate. The Extended Warranty segment provides after-market vehicle protection services distributed by credit unions. The Leased Real Estate segment leases real estate to a third party pursuant to a long-term triple net lease.
Over the past year, Charles Frischer has purchased a total of 42,700 shares and has not sold any shares. This trend of consistent buying by the insider is a positive signal for potential investors.
The insider transaction history for Kingsway Financial Services Inc shows a total of 54 insider buys over the past year, compared to 15 insider sells over the same timeframe. This trend of more insider buys than sells can be an encouraging sign for investors.
On the day of the insider's recent buy, shares of Kingsway Financial Services Inc were trading for $8.32 apiece, giving the stock a market cap of $229.753 million. The price-earnings ratio is 4.03, which is lower than the industry median of 16.53 and lower than the company’s historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers and its own historical valuation.
With a price of $8.32 and a GuruFocus Value of $7.35, Kingsway Financial Services Inc has a price-to-GF-Value ratio of 1.13. This means the stock is modestly overvalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity at Kingsway Financial Services Inc, coupled with the company's relatively low price-earnings ratio, suggests that the stock could be an attractive investment opportunity. However, potential investors should also consider the company's modest overvaluation based on its GF Value.
