Robert J Perna, SVP at Knowles KN, reported an insider sell on November 6, according to a new SEC filing.

What Happened: Perna’s decision to sell 21,080 shares of Knowles was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $370,164.

During Thursday’s morning session, Knowles shares down by 0.0%, currently priced at $19.35.

Discovering Knowles: A Closer Look

Knowles Corp is engaged in the manufacturing of micro-acoustic microphones and balanced armature speakers, audio solutions, high-performance capacitors, and radio frequency filtering products. It operates in three segments; the Precision Devices segment specializes in the design and delivery of high-performance capacitor products and RF solutions, Medtech & Specialty Audio segment designs and manufactures microphones and balanced armature speakers used in applications and the Consumer MEMS Microphones segment designs and manufactures micro-electro-mechanical systems microphones and audio solutions used in applications. The majority of its revenue comes from the Consumer MEMS Microphones segment.

A Deep Dive into Knowles’s Financials

Revenue Growth: Knowles’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 31.82%. This indicates a substantial increase in the company’s top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Exploring Profitability:

• Gross Margin: With a high gross margin of 44.14%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Knowles’s EPS reflects a decline, falling below the industry average with a current EPS of 0.01.

Debt Management: Knowles’s debt-to-equity ratio is below the industry average at 0.3, reflecting a lower dependency on debt financing and a more conservative financial approach.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 37.94, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.18, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 17.06, Knowles’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

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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Unmasking the Significance of Insider Transactions

Considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Navigating the World of Insider Transaction Codes

When analyzing 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 signifies 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 Knowles’s Insider Trades.

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