Robert J. Perna, Senior Vice President, General Counsel, and Secretary at Knowles Corp (NYSE:KN), recently sold a significant portion of the company's common stock. According to a recent SEC filing, Perna disposed of 21,080 shares on November 4, 2024, at an average price of $17.56 per share. This transaction totaled approximately $370,164.
The shares were held indirectly by a trust, and following the sale, there are no remaining shares owned by the trust. This move comes after a previous internal transfer of shares on March 4, 2024, which did not involve any monetary exchange.
In other recent news, Knowles Corporation reported strong Q3 2024 earnings, with revenues reaching $143 million, a 32% increase year-over-year, primarily driven by strategic acquisitions and 4% organic growth. The company is also transitioning away from the Consumer MEMS Microphone business, with a sale expected to conclude by the end of Q4 2024. Knowles Corporation projects Q4 revenues to be between $141 million and $151 million, with an EPS projection of $0.26 to $0.30.
In addition to financial performance, Knowles Corporation recently adopted the Fifth Amended and Restated By-Laws, aiming to refine corporate governance practices. The amendments include procedural changes for stockholder meetings and director nominations, and a new severability provision, among other updates, reflecting the company's commitment to robust corporate governance.
In recent developments, Knowles Corporation is actively assessing merger and acquisition opportunities that align with strategic goals. The company plans to host an Investor Forum in Q1 2025 to outline future growth strategies. Despite some inconsistencies in bookings through distribution partners in the industrial sector, a recovery is expected by late Q1 or Q2 2025.
InvestingPro Insights
While Robert J. Perna's recent stock sale might raise eyebrows, a closer look at Knowles Corp's financials and market position reveals a more nuanced picture. According to InvestingPro data, Knowles Corp boasts a market capitalization of $1.68 billion and has demonstrated strong revenue growth, with a 55.62% increase over the last twelve months as of Q3 2024. This robust growth trajectory aligns with the company's current trading price, which is near its 52-week high, as noted in one of the InvestingPro Tips.
Despite the insider sale, there are positive signals for investors to consider. InvestingPro Tips highlight that management has been aggressively buying back shares, which often indicates confidence in the company's future prospects. Additionally, two analysts have revised their earnings upwards for the upcoming period, suggesting a potentially positive outlook.
The company's valuation metrics present an interesting mix. While trading at a high earnings multiple with a P/E ratio of 37.28 (adjusted for the last twelve months), Knowles Corp also offers a strong free cash flow yield, according to another InvestingPro Tip. This combination could indicate that while the stock may appear expensive by traditional metrics, the company's cash generation capabilities are robust.
It's worth noting that Knowles Corp does not pay a dividend to shareholders, which may explain the company's focus on share buybacks as a means of returning value to investors. For those interested in a deeper dive into Knowles Corp's financial health and market position, InvestingPro offers 8 additional tips beyond those mentioned here, providing a more comprehensive analysis for potential investors.
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