Hennessy Advisors SVP and CFO Sold $107K In Company Stock

Kathryn Fahy, SVP and CFO at Hennessy Advisors HNNA, disclosed an insider sell on May 14, according to a recent SEC filing.

What Happened: Fahy's decision to sell 10,000 shares of Hennessy Advisors was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $107,118.

As of Thursday morning, Hennessy Advisors shares are up by 3.96%, currently priced at $10.5.

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: Financial Performance Dissected

Revenue Growth: Hennessy Advisors's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 33.66%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 57.34%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Hennessy Advisors's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.33.

Debt Management: Hennessy Advisors's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.43, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 8.08 is lower than the industry average, implying a discounted valuation for Hennessy Advisors's stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.22 is above industry norms, reflecting an elevated valuation for Hennessy Advisors's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 3.22 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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The Relevance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.

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