Hennessy Advisors President Trades $82K In Company Stock

Disclosed on March 24, Teresa M Nilsen, President at Hennessy Advisors HNNA, executed a substantial insider sell as per the latest SEC filing.

What Happened: Nilsen’s recent Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled the sale of 7,860 shares of Hennessy Advisors. The total transaction value is $82,102.

At Tuesday morning, Hennessy Advisors shares are up by 4.78%, trading at $10.95.

All You Need to Know About Hennessy Advisors

Hennessy Advisors Inc is an investment management company, engaged in the managing and marketing of open-end mutual funds branded as the Hennessy Funds. It offers domestic equity, sectors, and specialty, balanced, and fixed income products. It also provides investment advisory services and shareholder services to the Hennessy Funds which include managing the composition of each fund’s portfolio, including the purchase, retention, and disposition of portfolio securities as per the Fund’s investment objectives, policies, and restrictions; conducting investment research, and monitoring compliance with each fund’s investment restrictions and applicable laws and regulations.

Hennessy Advisors’s Financial Performance

Revenue Growth: Over the 3 months period, Hennessy Advisors showcased positive performance, achieving a revenue growth rate of 58.01% as of 31 December, 2024. This reflects a substantial increase in the company’s top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.

Navigating Financial Profits:

• Gross Margin: The company maintains a high gross margin of 57.11%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Hennessy Advisors’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.36.

Debt Management: With a high debt-to-equity ratio of 0.43, Hennessy Advisors faces challenges in effectively managing its debt levels, indicating potential financial strain.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 9.33 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 2.44, Hennessy Advisors’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio of 3.91 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: Positioned below industry benchmarks, the company’s market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Unmasking the Significance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Hennessy Advisors’s Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.