GARY BURNISON, CEO at Korn Ferry KFY, reported an insider sell on October 3, according to a new SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, BURNISON sold 100,000 shares of Korn Ferry. The total transaction value is $7,315,925.

As of Friday morning, Korn Ferry shares are down by 0.0%, currently priced at $72.07.

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.

Financial Milestones: Korn Ferry’s Journey

Revenue Growth: Korn Ferry’s revenue growth over a period of 3 months has faced challenges. As of 31 July, 2024, the company experienced a revenue decline of approximately -3.33%. This indicates a decrease in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Key Profitability Indicators:

• Gross Margin: The company maintains a high gross margin of 88.96%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Korn Ferry’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.19.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.33.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: Korn Ferry’s P/E ratio of 20.53 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.35 is lower than the industry average, implying a discounted valuation for Korn Ferry’s stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 10.65, Korn Ferry presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: The company’s market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Uncovering the Importance of Insider Activity

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Transaction Codes To Focus On

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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 Korn Ferry’s Insider Trades.

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