Susan Weber, a director at Hennessy Advisors Inc. (NASDAQ:HNNA), has recently sold a significant amount of company stock, according to the latest regulatory filings. The transactions, which took place over two consecutive days, resulted in a total sale value of over $100,000.
On September 25, 2024, Weber sold 1,073 shares of Hennessy Advisors at an average price of $9.8177 per share. The following day, she continued to sell an additional 9,177 shares at a price of $9.80 each. The combined sales over this period amounted to a total of $100,468, with share prices ranging between $9.8 and $9.8177.
After these transactions, Weber's remaining direct holdings in the company stand at 44,287 shares. Additionally, it's noted that an indirect holding of 67,619 shares is owned by her spouse's IRA.
Investors often monitor insider transactions as they can provide insights into executives' confidence in the company's future performance. The sale of stocks by a director might be part of a personal financial strategy or portfolio management and does not necessarily reflect on the company's current or future health.
Hennessy Advisors Inc. is an investment management firm known for its expertise in mutual funds and investment strategies. The company's executives' stock transactions are closely watched by the market as they can signal insider perspectives on the firm's valuation and prospects.
For those interested in following the company's stock performance and insider transactions, Hennessy Advisors trades under the ticker HNNA on the NASDAQ exchange.
In other recent news, Hennessy Advisors, Inc. announced alterations in the compensation packages of its key executives. Neil J. Hennessy, a significant figure in the company's leadership, will experience a decrease in his quarterly incentive-based bonus from 6.5% to 5.0% of the firm's pre-tax profits, effective October 1, 2024. Concurrently, Teresa M. Nilsen, another executive, will see her quarterly bonus rise to 5.0% and her annual base salary increase to $375,000.
These changes form part of amendments to their respective employment agreements, including a modification in the calculation used to determine the reduction of the reserve account in case of an adjusted pre-tax loss in any subsequent quarter within the same fiscal year. Kathryn R. Fahy, the company's Chief Financial Officer and Senior Vice President, will also receive an adjustment to her annual base salary, increasing to $275,000 starting October 1, 2024.
These compensation adjustments were approved by the Compensation Committee of the Board of Directors and are part of the recent developments within Hennessy Advisors, Inc.
InvestingPro Insights
To provide additional context to Susan Weber's recent stock sale, it's worth examining some key financial metrics and insights from InvestingPro for Hennessy Advisors Inc. (NASDAQ:HNNA).
According to InvestingPro data, Hennessy Advisors has a market capitalization of $72.74 million USD, positioning it as a small-cap company in the investment management sector. The company's P/E ratio stands at 12.27, which is relatively low compared to its peers, suggesting potential undervaluation.
One of the InvestingPro Tips highlights that Hennessy Advisors has maintained dividend payments for 20 consecutive years, demonstrating a commitment to shareholder returns. This is particularly relevant given the company's current dividend yield of 5.85%, which may be attractive to income-focused investors.
Despite Weber's stock sale, there are positive indicators for the company. An InvestingPro Tip notes that HNNA has seen a strong return over the last three months, with price data showing a 32.06% total return over that period. This recent performance, coupled with a 50.41% one-year price total return, suggests the company has been delivering value to shareholders.
It's also noteworthy that Hennessy Advisors' revenue growth for the last twelve months as of Q3 2024 was 11.9%, with quarterly revenue growth in Q3 2024 reaching an impressive 36.54%. This growth trajectory may provide context for the company's valuation and insider trading activities.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips and a wealth of financial metrics to further evaluate Hennessy Advisors' investment potential.
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