In the current market turmoil, insider buying is a major positive for any stock, especially in the case of Kingsway Financial Services (KFS), which owns or controls subsidiaries across the extended warranty, business services, asset management, and real estate industries.
Although Kingsway’s top line has expanded from $68.6 million in 2020 to $97.3 million in 2021, the TipRanks database highlights some major insider action in the stock over the past month.
Corporate insiders have bought Kingsway shares worth $2 million in the past three months, indicating a positive insider confidence signal for the stock. Moreover, three key names have lapped up Kingsway shares in the past month.
These include Joseph Stilwell, Director of Kingsway with over 10% stake; Charles Frischer, who has amassed around 7% stake and was appointed to the board in May; and the President, CEO, and Director of the company, John Tayler Maloney Fitzgerald.
Over the past two years, Stilwell has been consistently adding to his Kingsway holdings, which are valued at $10.77 million at present.
In May, Charles Frischer was appointed to Kingsway’s Board, Audit Committee, and Real Estate Committee. His holding in the company is valued at $9.5 million.
The final name on our list, John Fitzgerald, holds Kingsway stock worth $10.1 million and has seen an average 13% return on his transactions in the stock. Most importantly, the total board and management ownership in the company now stands at over 60%, indicating insider confidence in the company.
Hedge Funds
Although Kingsway does not currently have analyst coverage, the $118 million market cap company is already on the radar of hedge funds. Stilwell Value LLC has recently added the stock to its holdings, which now stand at $40.65 million.
Hedge funds have acquired a total of 172,500 shares in the company over the last quarter.
Closing Note
The solid insider buying and positive hedge fund moves indicate the possible outperformance of Kingsway over the broader indices. Over the past year, while the S&P 500 has dropped by 8.2%, Kingsway shares are up 2.54%!.
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