Kingsway Financial Services (NYSE:KWY) Shares Cross Above 50 Day Moving Average - Here's What Happened

Key Points

• Kingsway Financial Services shares rose 3.1%, trading as high as $9.94 and closing near $9.92, moving above the 50-day moving average of $9.73.
• Despite the technical rise, analyst sentiment remains negative: Weiss Ratings upgraded the stock only from “sell (e+)” to “sell (d-),” while the overall analyst consensus remains “Sell.”
• The company reported a quarterly loss of $0.03 per share, negative return on equity of 61.62%, and negative net margin of 6.69%; meanwhile, insiders made net purchases over the past three months, and institutional ownership stands at 72.38%.

Kingsway Financial Services Inc (NYSE:KWY - Get Free Report) passed above its 50 day moving average during trading on Friday. The stock has a 50 day moving average of $9.73 and traded as high as $9.94. Kingsway Financial Services shares last traded at $9.92, with a volume of 64,539 shares.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings raised Kingsway Financial Services from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday. One research analyst has rated the stock with a Sell rating. According to data from MarketBeat, the stock presently has an average rating of "Sell".

Kingsway Financial Services Trading Up 3.1%

The firm has a market cap of $287.00 million, a P/E ratio of -33.07 and a beta of 0.25. The firm's fifty day moving average is $9.73 and its two-hundred day moving average is $10.66. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 4.39.

Kingsway Financial Services (NYSE:KWY - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.03) EPS for the quarter. Kingsway Financial Services had a negative return on equity of 61.62% and a negative net margin of 6.69%. The company had revenue of $39.44 million during the quarter.

Insider Transactions at Kingsway Financial Services

In related news, Director Joseph Stilwell sold 100,000 shares of the stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $10.00, for a total value of $1,000,000.00. Following the completion of the transaction, the director directly owned 267,018 shares of the company's stock, valued at $2,670,180. This represents a 27.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Joshua Horowitz acquired 7,034 shares of the stock in a transaction on Wednesday, August 19th. The stock was bought at an average price of $9.84 per share, with a total value of $69,214.56. Following the completion of the acquisition, the director directly owned 380,334 shares of the company's stock, valued at $3,742,486.56. This trade represents a 1.88% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last three months, insiders purchased 14,051 shares of company stock valued at $136,106. 41.41% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in KWY. State Street Corp purchased a new stake in Kingsway Financial Services in the second quarter worth $3,105,000. Citadel Advisors LLC bought a new position in Kingsway Financial Services in the second quarter worth $1,197,000. Waverly Advisors LLC purchased a new position in Kingsway Financial Services during the first quarter valued at $1,304,000. Squarepoint Ops LLC purchased a new position in Kingsway Financial Services during the second quarter valued at $791,000. Finally, Renaissance Technologies LLC lifted its position in Kingsway Financial Services by 22.3% during the first quarter. Renaissance Technologies LLC now owns 319,670 shares of the company's stock valued at $3,334,000 after buying an additional 58,290 shares during the period. Hedge funds and other institutional investors own 72.38% of the company's stock.

Kingsway Financial Services Company Profile

Kingsway Financial Services Inc NYSE: KWY is a Canadian-based holding company that owns and operates businesses in the specialty insurance and insurance-services sectors. Its portfolio includes companies providing specialty insurance products, extended warranty programs, and related administrative and claims services.

Historically, Kingsway operated primarily as a specialty insurance provider, including nonstandard automobile insurance businesses in the United States and Canada. The company has since focused on managing and developing a diversified group of insurance and non-insurance subsidiaries, with operations serving customers principally in North America.

Kingsway was founded in 1989 and is headquartered in Toronto, Ontario.

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