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In recent transactions, several entities associated with Joseph Stilwell have sold significant shares of Kingsway Financial Services Inc. (NYSE:KFS), a company with a current market capitalization of $237.7 million. On December 18 and 19, Stilwell Activist Investments, LP and Stilwell Activist Fund, LP collectively sold a total of 589,000 shares at a constant price of $8.43 per share, equivalent to approximately $4.97 million. The stock now trades at $8.53, slightly above the insider sale price. InvestingPro analysis indicates that the stock is trading above its fair value.
These sales were executed by Stilwell Activist Investments, which sold 322,584 shares on December 18 and 198,869 shares on December 19. At the same time, Stilwell Activist Fund sold 42,416 shares on December 18 and 26,131 shares on December 19. Following these transactions, the entities maintain a substantial stake in Kingsway Financial, with shares owned directly and indirectly through various companies.
Joseph Stilwell, director and ten percent owner of Kingsway Financial, manages these transactions through Stilwell Value LLC, the general partner of the entities involved. Despite the sales, Stilwell continues to have a significant stake in the company, with shares owned directly or indirectly through his affiliations.
In other recent news, Kingsway Financial Services Inc. reported a strong third quarter for 2024, highlighted by a nearly 10% increase in consolidated revenue, reaching $27.1 million, and a 28% increase in EBITDA adjusted to $2.9 million. The company’s $19.5 million acquisition of Image Solutions was a notable development that is expected to enhance growth through expanded IT managed services. Despite an increase in claims expenses, the Extended Warranty segment experienced a 3.4% revenue increase, while the KSX segment experienced a 23% revenue increase, attributed to prior acquisitions.
Kingsway continues to pursue growth through acquisitions, with a strong pipeline and a focus on asset-light business services and vertical market software. The company remains optimistic about future growth and could benefit from interest rate cuts. Cash and equivalents amounted to $6.5 million, and total debt amounted to $58.5 million.
These are recent developments that reflect Kingsway’s commitment to a growth strategy focused on acquisitions and organic growth, particularly in the SPI business. The company’s financial strategy emphasizes the use of cash flow to reduce debt and increase financing. Despite some operational challenges and the impact of Hurricane Helene on Image Solutions’ hardware facilities, Kingsway leadership expressed confidence in the company’s direction and project activity.
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