Korn Ferry (NYSE:KFY) CEO Gary D. Burnison has sold a significant portion of his shares in the company, according to recent filings with the Securities and Exchange Commission. Over a span of three days, Burnison sold a total of 99,000 shares of Korn Ferry common stock, with the transactions amounting to over $7.3 million.
The sales occurred on October 1st, 2nd, and 3rd, with prices per share ranging from $72.1631 to $74.05. On the first day, Burnison sold 16,274 shares at an average price of $74.05. The following day, he sold 45,000 shares at an average price of $73.68. The final sale on October 3rd consisted of two separate transactions, one with 37,726 shares at an average of $72.1631 per share and another with 1,000 shares at an average price of $72.811.
After these transactions, Burnison still holds a substantial number of shares in the company. Post-sales, his ownership stands at 273,118 shares of Korn Ferry common stock. The sales were executed in multiple trades, and the prices reported are the weighted average sale prices. The CEO has committed to providing full information regarding the specific prices and number of shares for each transaction upon request to the SEC staff, the issuer, or a security holder of the issuer.
Investors often monitor insider transactions such as these for insights into executive sentiment about the company's performance and valuation. The sale by Korn Ferry's CEO represents a notable change in his investment position, yet it does not necessarily indicate a change in company prospects.
Korn Ferry, headquartered in Los Angeles, California, is a global organizational consulting firm, synchronizing strategy and talent to drive superior performance for their clients.
In other recent news, Korn Ferry, a global organizational consulting firm, has reported strong financial results for Q1 FY2025. The company's fee revenue and profitability met or exceeded expectations, with an expanded adjusted EBITDA margin and a 36% increase in employee productivity from pre-pandemic levels. Korn Ferry also announced the appointment of Russ Hagey, a former senior partner at Bain & Company, to its board of directors. Hagey's extensive experience in talent management and consulting is expected to be a significant asset to the firm's leadership.
Despite a decline in Professional Search and interim fee revenues, Korn Ferry has shown signs of stabilization and plans to grow its net consultants across various business segments in the coming year. The company is also focusing on a go-to-market strategy, innovation and IP, brand enhancement, mergers and acquisitions, and talent development. Korn Ferry anticipates Q2 fee revenue 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 to $1.23.
However, the company has faced challenges due to a decline in flights to China, which has led to decreased revenue. Despite this, Korn Ferry remains confident in capturing future growth opportunities with its improved investable cash position of $553 million. These recent developments underscore Korn Ferry's strategic focus and adaptability in an evolving market landscape.
InvestingPro Insights
Adding context to CEO Gary D. Burnison's recent stock sales, InvestingPro data reveals that Korn Ferry (NYSE:KFY) has a market capitalization of $3.75 billion and is trading at a P/E ratio of 20.3. This valuation metric, when considered alongside the company's financial health, provides a more comprehensive picture for investors.
InvestingPro Tips highlight that Korn Ferry holds more cash than debt on its balance sheet, indicating a strong financial position. This robust liquidity is further supported by the fact that the company's liquid assets exceed its short-term obligations. These factors may provide some reassurance to investors in light of the CEO's stock sales.
Moreover, Korn Ferry has demonstrated a commitment to shareholder returns by raising its dividend for four consecutive years. The current dividend yield stands at 2.05%, which could be attractive to income-focused investors. This consistent dividend growth, coupled with a strong balance sheet, suggests that the company maintains a shareholder-friendly approach despite the insider selling activity.
It's worth noting that Korn Ferry has shown impressive stock performance, with a one-year price total return of 54.72% as of the latest data. This strong return aligns with another InvestingPro Tip indicating high returns over the last year, which may contextualize the CEO's decision to realize some gains.
For investors seeking a deeper understanding of Korn Ferry's prospects, InvestingPro offers 11 additional tips, providing a more comprehensive analysis of the company's financial health and market position.
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