Korn Ferry EVP sells more than $3.7 million in company stock to Investing.com

Korn Ferry (NYSE: ) Executive Vice President, Chief Financial Officer and Chief Compliance Officer Robert P. Rozek has sold a significant portion of his holdings in the company, according to recent filings. The transactions, which took place on September 19 and 20, involved the sale of the company’s common stock totaling more than $3.7 million.

Rozek completed the sale of 20,921 shares on September 19th at a weighted average price of $75.5344 per share, followed by two separate transactions on September 20th. The first sale of the day involved 26,200 shares at an average price of $75.1832, while the second sale was 2,879 shares at an average price of $75.6337. Trades were executed in multiple trades in price ranges of $75.30 to $75.87 for the first sale, $74.57 to $75.57 for the second, and $75.58 to $75.75 for final sale as indicated by the footnotes in the filing.

Following these sales, Rozek’s ownership of Korn Ferry was adjusted to 125,456 shares of common stock. The company, known for its global organizational consulting and recruitment services, has Rozek as a key executive, but not as a director or ten percent owner.

Investors often keep an eye on insider trading because it can provide insight into an executive’s perspective on the company’s current valuation and future prospects. Rozek’s sales represent a notable shift in his investment position, although the reasons behind the trades are not disclosed in the filing.

Disclosure of these stock transactions is part of the routine reporting required of company insiders, providing transparency into the trading activities of directors and other significant shareholders.

In other recent news, Korn Ferry reported a strong start to the first quarter of fiscal 2025, with both fee income and profitability meeting or exceeding the company’s expectations. The company’s adjusted EBITDA margin expanded for the fifth consecutive quarter and there was a 36% increase in employee productivity from pre-pandemic levels. Korn Ferry expects second-quarter fee income to be between $655 million and $685 million, with an adjusted EBITDA margin of 6.3% to 16.7% and GAAP diluted earnings per share of 1.11 USD to USD 1.23. Despite the decline, income from professional search and intermediary commissions showed signs of stabilization.

On the other hand, the company saw a decrease in revenue due to the decrease in flights to China. However, Korn Ferry remains optimistic about its future growth opportunities with a strategic focus on innovation, brand enhancement and talent development. The company’s capital allocation strategy included significant shareholder returns, new hires, digital upgrades and technology investments. These are among the recent developments that position Korn Ferry favorably in the estimated $300 billion market.

InvestingPro Insights

In light of recent insider trading at Korn Ferry ( NYSE:KFY ) , investors may be looking for additional context to better understand the company’s financials. According to the latest data from InvestingPro, Korn Ferry has a market capitalization of approximately $3.9 billion, underscoring its significant presence in the organizational consulting and employment services sector.

An InvestingPro tip points out that Korn Ferry has raised its dividend for four consecutive years, which could indicate the company’s confidence in its financial health and commitment to returning value to shareholders. Additionally, Korn Ferry’s cash flows are robust enough to cover interest payments, suggesting a solid financial structure that can support its debt obligations.

From a valuation perspective, Korn Ferry currently trades at a P/E ratio of 21.36, with an adjusted P/E ratio for the trailing twelve months, beginning with Q1 2023, of 18.82. This suggests a relatively high valuation in terms of near-term earnings growth, which is further reflected in a PEG ratio of 5.83 for the same period. However, the company’s price-to-book ratio remains moderate at 2.24, indicating a potentially reasonable valuation when considering the company’s net asset value.

For investors looking for more detailed analysis and additional InvestingPro tips, there are 11 more tips available that provide insight into Korn Ferry’s stock performance, liquidity, profitability and analyst forecasts. These can be found on InvestingPro’s dedicated page for Korn Ferry: https://www.investing.com/pro/KFY. Such information could be particularly useful to shareholders and potential investors in evaluating the implications of insider sales and the overall investment potential of Korn Ferry.

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