Raymond D Cabrera, SVP at Knowles KN, reported an insider sell on May 19, according to a new SEC filing.
What Happened: Cabrera’s recent move involves selling 5,545 shares of Knowles. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value is $95,653.
Monitoring the market, Knowles‘s shares down by 0.0% at $17.12 during Monday’s morning.
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 two segments; the Precision Devices segment specializes in the design and delivery of high-performance capacitor products and RF solutions; and Medtech & Specialty Audio segment designs and manufactures microphones and balanced armature speakers used in applications. The majority of its revenue comes from the Precision Devices. Geographically, it operates in United States, Asia, Other Americas, Europe and Others, out of which United States generates maximum revenue.
Knowles: Financial Performance Dissected
Negative Revenue Trend: Examining Knowles’s financials over 3 months reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -0.83% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Analyzing Profitability Metrics:
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Gross Margin: With a high gross margin of 40.32%, the company demonstrates effective cost control and strong profitability relative to its peers.
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Earnings per Share (EPS): With an EPS below industry norms, Knowles exhibits below-average bottom-line performance with a current EPS of -0.02.
Debt Management: Knowles’s debt-to-equity ratio is below the industry average. With a ratio of 0.28, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Analyzing Market Valuation:
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Price to Earnings (P/E) Ratio: Knowles’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 63.41.
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Price to Sales (P/S) Ratio: The current P/S ratio of 2.78 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 16.26, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
Market Capitalization Analysis: Falling below industry benchmarks, the company’s market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
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Why Insider Transactions Are Key in Investment Decisions
Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.
In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Deciphering Transaction Codes in Insider Filings
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.
