On May 24, 2023, CEO and 10% Owner Neil Hennessy purchased 7,500 shares of Hennessy Advisors Inc (HNNA, Financial), an investment management company. This latest acquisition is part of a series of insider transactions that have taken place over the past year, with Hennessy buying a total of 19,500 shares and selling none.
Who is Neil Hennessy?
Neil Hennessy is the CEO and 10% Owner of Hennessy Advisors Inc. He has been with the company since its inception and has played a significant role in its growth and success. Under his leadership, Hennessy Advisors has become a well-respected investment management firm, offering a range of mutual funds and investment products to individual and institutional investors.
About Hennessy Advisors Inc
Hennessy Advisors Inc is an investment management company that focuses on managing, servicing, and marketing a range of mutual funds and investment products. The company's primary goal is to provide long-term growth and capital appreciation for its clients through a disciplined and consistent investment approach. Hennessy Advisors Inc is headquartered in Novato, California, and is traded on the NASDAQ under the ticker symbol HNNA.
Insider Buying and Selling Trends
Over the past year, there have been a total of 2 insider buys and 3 insider sells for Hennessy Advisors Inc. This indicates a mixed sentiment among insiders, with some showing confidence in the company's prospects through their purchases, while others have chosen to sell their shares.
Stock Price and Valuation
On the day of Neil Hennessy's recent purchase, shares of Hennessy Advisors Inc were trading at $6.85 apiece, giving the stock a market capitalization of $53.109 million. The price-earnings ratio of 10.62 is lower than the industry median of 12.81 but higher than the company's historical median price-earnings ratio.
With a current price of $6.85 and a GuruFocus Value of $7.26, Hennessy Advisors Inc has a price-to-GF-Value ratio of 0.94, indicating that the stock is fairly valued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, which is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
Conclusion
Neil Hennessy's recent purchase of 7,500 shares of Hennessy Advisors Inc is a notable insider transaction, as it adds to his total holdings of 19,500 shares acquired over the past year. The mixed insider buying and selling trends, along with the stock's fairly valued status based on its GF Value, suggest that investors should keep a close eye on the company's performance and any future insider transactions to gain a better understanding of its prospects.
As always, it is essential for investors to conduct their research and consider multiple factors before making any investment decisions. Insider transactions can provide valuable insights into a company's prospects, but they should not be the sole basis for an investment decision.
