In a recent transaction, Kiera Newton, a director at Hennessy Advisors Inc (NASDAQ:HNNA), sold 520 shares of the company's common stock. The sale was executed at a price of $9.40 per share, amounting to a total value of $4,888.
The transaction, which took place on September 27, 2024, was disclosed in a filing with the Securities and Exchange Commission. Following the sale, Newton's direct ownership in Hennessy Advisors Inc stands at 12,930 shares.
Hennessy Advisors Inc, known for providing investment advisory services, has its shares traded under the ticker HNNA on the NASDAQ stock exchange. The company is headquartered in Novato, California, and operates within the investment advice sector.
Investors often monitor insider transactions as they can provide insights into how the company's executives view the stock's value and prospects. However, such transactions may not always be indicative of future performance and should be considered as one of many factors when evaluating a company's financial health and potential investment opportunities.
The filing did not include any additional details or footnotes that might provide context for the transaction. It is common for executives to sell shares for various reasons, including portfolio diversification or personal financial management.
In other recent news, Hennessy Advisors, Inc. has made significant changes to the compensation arrangements for its key executives. As per a recent SEC filing, effective October 1, 2024, Neil J. Hennessy, a leading figure in the company, will experience a decrease in his quarterly incentive-based bonus from 6.5% to 5.0% of the firm's pre-tax profits. Concurrently, Teresa M. Nilsen, another executive, will see an increase in her quarterly bonus to 5.0% and a raise in her annual base salary to $375,000.
These adjustments are part of the amendments to their respective employment agreements. Hennessy's compensatory terms have also been modified to include a new calculation method for the reduction of the reserve account in the event of an adjusted pre-tax loss in any subsequent quarter within the same fiscal year.
In addition, Kathryn R. Fahy, the company's Chief Financial Officer and Senior Vice President, will receive an adjustment to her annual base salary, which will increase to $275,000 starting October 1, 2024. This decision was approved by the Compensation Committee of the Board of Directors. These are the recent developments within Hennessy Advisors, Inc.
InvestingPro Insights
To provide additional context to Kiera Newton's recent stock sale, let's delve into some key financial metrics and insights for Hennessy Advisors Inc (NASDAQ:HNNA).
According to InvestingPro data, Hennessy Advisors has a market capitalization of $76 million USD, positioning it as a small-cap company in the investment advice sector. The company's P/E ratio stands at 12.4, which is relatively low and could potentially indicate an undervalued stock.
One of the most notable InvestingPro Tips for HNNA is that the company has maintained dividend payments for 20 consecutive years. This impressive track record of consistent dividends aligns with the company's current attractive dividend yield of 5.61%, based on the most recent data. Such a strong dividend history may be particularly appealing to income-focused investors, especially in light of the recent insider sale.
Another relevant InvestingPro Tip highlights that HNNA has shown a strong return over the last three months. This is corroborated by the InvestingPro Data, which shows a remarkable 39.75% price total return over the past three months. This recent performance surge might provide some context for the timing of the director's stock sale, potentially capitalizing on the stock's upward momentum.
It's worth noting that HNNA's revenue growth has been solid, with a 36.54% increase in the most recent quarter compared to the same quarter last year. This growth, coupled with a healthy gross profit margin of 51.65%, suggests that the company's core business remains strong despite the insider sale.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 7 more InvestingPro Tips available for HNNA, which could provide a more nuanced understanding of the company's financial position and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.