The Director of Kingsway Financial Services Inc. (NYSE:KFS), Charles Frischer, Just Bought A Few More Shares
Even if it's not a huge purchase, we think it was good to see that Charles Frischer, the Director of Kingsway Financial Services Inc. (NYSE:KFS) recently shelled out US$57k to buy stock, at US$5.40 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
View our latest analysis for Kingsway Financial Services
Kingsway Financial Services Insider Transactions Over The Last Year
Notably, that recent purchase by Charles Frischer is the biggest insider purchase of Kingsway Financial Services shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$5.39. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Kingsway Financial Services insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Kingsway Financial Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Kingsway Financial Services Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Kingsway Financial Services insiders own about US$29m worth of shares. That equates to 23% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Kingsway Financial Services Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Kingsway Financial Services we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kingsway Financial Services. For example - Kingsway Financial Services has 1 warning sign we think you should be aware of.
But note: Kingsway Financial Services may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
