Kingsway Financial Services (NYSE:KWY) Shares Down 3.4% - Here's Why

Key Points

• Kingsway Financial Services shares fell 3.4% on Wednesday, trading as low as $8.95 after closing at $9.30 the prior session. Trading volume was slightly above average.
• Market sentiment remains weak, with Weiss Ratings upgrading the stock only from “sell (e+)” to “sell (d-)” and the overall consensus rating still at Sell.
• Recent fundamentals and insider activity were mixed: the company reported a $0.10 EPS loss on $38.96 million in quarterly revenue, while a director bought shares and the CEO sold shares in recent transactions.

Shares of Kingsway Financial Services Inc (NYSE:KWY - Get Free Report) fell 3.4% on Wednesday . The stock traded as low as $8.95 and last traded at $8.98. Approximately 82,681 shares changed hands during mid-day trading, an increase of 1% from the average session volume of 81,558 shares. The stock had previously closed at $9.30.

Analyst Ratings Changes

Separately, Weiss Ratings upgraded shares of Kingsway Financial Services from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday, May 29th. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat.com, the company has a consensus rating of "Sell".

Kingsway Financial Services Stock Down 3.4%

The company has a debt-to-equity ratio of 3.56, a current ratio of 1.62 and a quick ratio of 1.62. The stock has a market capitalization of $259.97 million, a P/E ratio of -22.45 and a beta of 0.23. The stock's fifty day moving average is $10.21 and its two-hundred day moving average is $11.70.

Kingsway Financial Services (NYSE:KWY - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.10) earnings per share (EPS) for the quarter. Kingsway Financial Services had a negative net margin of 8.83% and a negative return on equity of 72.50%. The company had revenue of $38.96 million during the quarter.

Insiders Place Their Bets

In related news, Director Joshua Horowitz bought 3,800 shares of the business's stock in a transaction dated Friday, May 29th. The shares were bought at an average cost of $9.91 per share, with a total value of $37,658.00. Following the completion of the transaction, the director directly owned 372,000 shares of the company's stock, valued at approximately $3,686,520. This trade represents a 1.03% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO John Taylor Maloney Fitzgerald sold 5,000 shares of the company's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $10.13, for a total value of $50,650.00. Following the sale, the chief executive officer directly owned 29,100 shares of the company's stock, valued at approximately $294,783. This represents a 14.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders purchased a total of 5,458 shares of company stock worth $54,634 over the last 90 days. Insiders own 41.41% of the company's stock.

Institutional Trading of Kingsway Financial Services

A number of hedge funds have recently bought and sold shares of KWY. Greenhaven Road Investment Management L.P. increased its position in shares of Kingsway Financial Services by 43.8% in the fourth quarter. Greenhaven Road Investment Management L.P. now owns 1,884,529 shares of the company's stock worth $25,347,000 after acquiring an additional 573,993 shares in the last quarter. Capricorn Fund Managers Ltd acquired a new stake in shares of Kingsway Financial Services during the first quarter valued at approximately $18,616,000. Vanguard Group Inc. lifted its position in shares of Kingsway Financial Services by 12.5% in the 3rd quarter. Vanguard Group Inc. now owns 948,838 shares of the company's stock valued at $13,872,000 after acquiring an additional 105,080 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Kingsway Financial Services by 2.2% in the 4th quarter. Geode Capital Management LLC now owns 470,407 shares of the company's stock valued at $6,329,000 after acquiring an additional 10,143 shares in the last quarter. Finally, Renaissance Technologies LLC boosted its stake in Kingsway Financial Services by 22.3% in the 1st quarter. Renaissance Technologies LLC now owns 319,670 shares of the company's stock worth $3,334,000 after purchasing an additional 58,290 shares during the period. 72.38% of the stock is owned by hedge funds and other institutional investors.

About Kingsway Financial Services

Kingsway Financial Services Inc is a holding company that operates through a group of subsidiaries focused on extended warranty and specialty insurance-related services. The company's businesses primarily provide administration, underwriting, and related support services for protection products offered through automotive, consumer, and other markets.

Kingsway has historically operated in the insurance and service contract space, with activities centered on helping businesses and consumers manage risk and protection coverage needs.

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