Kingsway fell about 3 percent today, the latest step in a slow slide that has left the stock down nearly 24 percent this year. We think this is mostly ordinary movement on a quiet day for the company, as there was no major news to explain the drop.
Our view
The company is growing its new business acquisitions quickly, but the stock price is still quite high compared to what it currently earns. If you already own it, there is nothing to do but sit tight and watch how the next few deals perform.
Credit card and auto loan delinquencies remain elevated
The Federal Reserve Bank of New York reported that credit card and auto loan delinquencies, which are payments that are late or missed, remain at high levels. This is a trend to watch for Kingsway because its legacy business provides extended warranties for vehicles. If consumers struggle to pay for their cars or credit cards, they may spend less on optional services like warranties, which could slow down the cash flow Kingsway uses to fund its new acquisitions.
Kingsway Financial Services analyst price targets
No Wall Street analysts cover Kingsway Financial Servicesyet. That’s common for smaller companies. We’ll show their price targets here once coverage begins.
Kingsway Financial Services earnings
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