Kingsway Financial Services MACD Death Cross Triggers Bearish Marubozu on 15min Chart

Kingsway Financial Services's 15-minute chart has recently exhibited a MACD Death Cross and a Bearish Marubozu formation, which occurred on August 19, 2022 at 09:45. This technical indicator suggests that the stock price is likely to continue declining, as sellers dominate the market and bearish momentum prevails.

Kingsway Financial Services Inc. (KFS) has recently exhibited a MACD Death Cross and a Bearish Marubozu formation on its 15-minute chart, suggesting a potential continuation of the stock's decline. This technical indicator signals a dominant selling pressure and bearish momentum, which may influence investor sentiment. The formation occurred on August 19, 2022, at 09:45.

In addition to the technical indicators, KFS reported mixed earnings for the quarter ended June 30, 2025. The company's consolidated revenue rose by 16.9% year over year to $30.9 million, primarily driven by the Kingsway Search Xcelerator (KSX) segment's 42.1% revenue surge to $13.3 million from $9.3 million. However, the company's net loss widened to $3.2 million from $2.2 million a year ago, and adjusted consolidated EBITDA fell by 32.6% to $1.7 million from $2.5 million [1].

Despite the earnings setback, KFS's management remains optimistic about the company's growth potential, particularly through the KSX platform. The company has been actively pursuing acquisitions to expand its portfolio, with a raised target of three to five acquisitions per year. In the second quarter of 2025, KFS closed three acquisitions, including the purchase of Southside Plumbing for a maximum purchase price of $6.75 million [2].

The acquisition of Southside Plumbing strengthens KFS's skilled trades platform with a recurring revenue business at a reasonable valuation. The deal structure reveals careful capital allocation, with $4.0 million cash at closing, a $0.5 million seller note, a potential earn-out of up to $1.125 million, and a 20% retained equity for the seller. The maximum purchase price of $6.75 million against $0.9 million in pro-forma annual adjusted EBITDA implies a 7.5x EBITDA multiple at full earn-out valuation, representing a reasonable acquisition multiple for a service business with strong recurring revenue components.

While KFS's technical indicators suggest a potential decline in stock price, the company's recent earnings report and acquisition strategy indicate a focus on growth and expansion. Investors should closely monitor the company's performance and the impact of the technical signals on its stock price.

References:
[1] https://finance.yahoo.com/news/kingsway-financial-shares-dip-mixed-165200084.html
[2] https://www.stocktitan.net/news/KFS/kingsway-announces-acquisition-of-southside-zwmnlg46e34v.html