Keith Barnes, a director at Knowles Corp (NYSE:KN), has sold 6,725 shares of the company's common stock on September 30, 2024. The shares were sold at a price of $17.88 per share, totaling approximately $120,243.
The transaction was executed on the last day of September, with Barnes reducing his holdings but still maintaining a significant stake of 86,192 shares in the company following the sale. Knowles Corp, known for its household audio and video equipment, is headquartered in Itasca, Illinois, and is incorporated in Delaware.
This sale by a member of Knowles Corp's board of directors provides investors with insights into executive transactions within the company. Monitoring such sales can be an integral part of an investor's research process, as it may reflect the director's perspective on the company’s current valuation and future prospects.
Investors and market watchers often pay close attention to insider transactions, as they may offer some indication of the leadership's confidence in the company's direction and financial health. However, it is also important to consider that insider sales can be motivated by a variety of personal financial needs or portfolio strategies, and not necessarily a direct reflection of the company's outlook.
Knowles Corp's stock, listed on the New York Stock Exchange under the ticker symbol KN, may see varied reactions in the market following the announcement of this transaction. Investors are encouraged to consider the broader context of the market, the company's recent performance, and other relevant news when assessing the potential impact of insider transactions on their investment decisions.
In other recent news, Knowles Corporation experienced significant developments. The company reported an 18% year-over-year increase in revenues for the second quarter of 2024, achieving $205 million, driven by a notable 55% revenue surge in the Precision Devices segment. Furthermore, the company sold its Consumer MEMS Microphone (CMM) business to Syntiant Corp for $150 million, a move that Baird analysts praised, leading to an increased price target for Knowles' stock.
The sale, which includes $70 million in cash and $80 million in Syntiant preferred stock, is expected to bolster Knowles' financial standing and reshape its focus. The company's third-quarter revenues from continuing operations are projected to range from $139 to $143 million, with non-GAAP diluted earnings per share from continuing operations estimated at $0.24 to $0.28.
In addition, Knowles' MIL-PRF-55681 capacitors have met the stringent standards of the Defense Logistics Agency for defense and aerospace applications, earning a place on the U.S. Department of Defense's Qualified Products List. Lastly, Erania Brackett has resigned from the Knowles Corporation Board of Directors following a change in her principal employment. These are the latest developments for Knowles Corporation.
InvestingPro Insights
To provide additional context to Keith Barnes' recent stock sale, let's examine some key financial metrics and insights from InvestingPro for Knowles Corp (NYSE:KN).
As of the latest data, Knowles Corp has a market capitalization of $1.59 billion. The company's revenue for the last twelve months as of Q2 2024 stood at $791.4 million, with a notable revenue growth of 14.27% over the same period. This growth trend is further emphasized by an 18.32% quarterly revenue increase in Q2 2024, indicating positive momentum in the company's top line.
An InvestingPro Tip highlights that management has been aggressively buying back shares. This could be seen as a sign of confidence in the company's value and future prospects, potentially offsetting concerns raised by the director's recent sale.
Despite the revenue growth, it's worth noting that Knowles Corp was not profitable over the last twelve months, with a negative P/E ratio of -8.35. However, another InvestingPro Tip suggests that analysts predict the company will be profitable this year, which could explain why the stock price is currently at 91.38% of its 52-week high.
The company's financial health appears stable, with an InvestingPro Tip indicating that liquid assets exceed short-term obligations. This strong liquidity position may provide some reassurance to investors concerned about the company's ability to manage its financial commitments.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Knowles Corp, providing a deeper understanding of the company's financial position and market outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.