Board Member Of Hennessy Advisors Makes $158K Sale

Thomas L Seavey, Board Member at Hennessy Advisors HNNA, executed a substantial insider sell on August 14, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Seavey sold 14,704 shares of Hennessy Advisors. The total transaction value is $158,452.

In the Friday's morning session, Hennessy Advisors's shares are currently trading at $9.88, experiencing a down of 7.66%.

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 Economic Impact: An Analysis

Revenue Growth: Hennessy Advisors displayed positive results in 3 months. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 3.47%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Analyzing Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 54.08%, 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 0.27.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.42, caution is advised due to increased financial risk.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 8.56, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.36 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): With an EV/EBITDA ratio lower than industry averages at 3.31, Hennessy Advisors could be considered undervalued.

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.

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Why Insider Transactions Are Important

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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.

Exploring Key Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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.

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