A substantial insider sell was reported on June 25, by ROBERT ROZEK, EVP at Korn Ferry KFY, based on the recent SEC filing.
What Happened: ROZEK's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 40,000 shares of Korn Ferry. The total transaction value is $2,910,422.
In the Thursday's morning session, Korn Ferry's shares are currently trading at $73.51, experiencing a down of 0.0%.
Unveiling the Story Behind Korn Ferry
Korn Ferry is a United States-based firm engaged in organizational consulting and management recruitment that helps clients fill mid- to high-level management positions. The company's segment includes Consulting; Digital; Executive Search; Professional Search & Interim; and RPO. The company generates the majority of its revenue from the Executive Search segment and Consulting segment. The consulting segment aligns organizational structure, culture, performance, development, and people to drive sustainable growth by addressing four fundamental organizational and talent needs. The Executive search segment helps organizations recruit board-level, chief executive, and other C-suite/senior executive and general management talent to deliver lasting impact.
Korn Ferry's Financial Performance
Revenue Growth: Korn Ferry's revenue growth over a period of 3 months has been noteworthy. As of 30 April, 2025, the company achieved a revenue growth rate of approximately 6.4%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Analyzing Profitability Metrics:
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Gross Margin: The company sets a benchmark with a high gross margin of 88.52%, reflecting superior cost management and profitability compared to its peers.
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Earnings per Share (EPS): Korn Ferry's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.23.
Debt Management: Korn Ferry's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.3.
Assessing Valuation Metrics:
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Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 15.98, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
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Price to Sales (P/S) Ratio: The P/S ratio of 1.41 is lower than the industry average, implying a discounted valuation for Korn Ferry's stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 7.42 is below the industry average, indicating that it may be relatively undervalued compared to peers.
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
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Why Insider Activity Matters in Finance
Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
Deciphering Transaction Codes in Insider Filings
Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Korn Ferry's Insider Trades.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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