Hennessy Advisors (NASDAQ:HNNA) Releases Earnings Results, Misses Expectations By $0.09 EPS

Key Points

• Hennessy Advisors missed expectations, reporting $0.24 EPS versus a $0.33 consensus (a $0.09 shortfall) and revenue of $8.13M versus $9.61M; the firm posted a 9.33% return on equity and a 26.52% net margin.
• The company raised its quarterly dividend to $0.15 (annualized $0.60), implying a roughly 6.1% yield with a dividend payout ratio around 52.6%.
• Shares traded down about 0.6% to $9.91 after the report (market cap ~$78M, P/E ~8.7); Weiss Ratings reiterated a Hold, and institutional investors own roughly 10.3% of the stock.

Hennessy Advisors (NASDAQ:HNNA - Get Free Report) posted its quarterly earnings data on Wednesday. The asset manager reported $0.24 EPS for the quarter, missing analysts' consensus estimates of $0.33 by ($0.09), FiscalAI reports. Hennessy Advisors had a return on equity of 9.33% and a net margin of 26.52%.The firm had revenue of $8.13 million during the quarter, compared to the consensus estimate of $9.61 million.

Hennessy Advisors Trading Down 0.6%

HNNA stock traded down $0.06 on Wednesday, hitting $9.91. 6,120 shares of the company's stock traded hands, compared to its average volume of 13,100. Hennessy Advisors has a 1-year low of $8.90 and a 1-year high of $13.19. The stock has a market cap of $78.19 million, a price-to-earnings ratio of 8.69 and a beta of 0.59. The stock has a fifty day moving average of $9.82 and a 200-day moving average of $9.88.

Hennessy Advisors Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, March 4th. Investors of record on Wednesday, February 18th were paid a dividend of $0.15 per share. This is a boost from Hennessy Advisors's previous quarterly dividend of $0.14. This represents a $0.60 annualized dividend and a yield of 6.1%. The ex-dividend date of this dividend was Wednesday, February 18th. Hennessy Advisors's dividend payout ratio (DPR) is currently 52.63%.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued a "hold (c+)" rating on shares of Hennessy Advisors in a research note on Friday, March 27th. One analyst has rated the stock with a Hold rating, According to data from MarketBeat, the company has a consensus rating of "Hold".

Institutional Trading of Hennessy Advisors

Several institutional investors and hedge funds have recently added to or reduced their stakes in HNNA. Geode Capital Management LLC raised its holdings in shares of Hennessy Advisors by 2.0% during the second quarter. Geode Capital Management LLC now owns 51,894 shares of the asset manager's stock valued at $654,000 after acquiring an additional 1,014 shares during the period. Truffle Hound Capital LLC boosted its stake in Hennessy Advisors by 6.1% in the 4th quarter. Truffle Hound Capital LLC now owns 160,000 shares of the asset manager's stock worth $1,536,000 after purchasing an additional 9,143 shares during the period. Dimensional Fund Advisors LP grew its position in Hennessy Advisors by 2.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 49,110 shares of the asset manager's stock worth $471,000 after purchasing an additional 1,282 shares in the last quarter. Susquehanna International Group LLP grew its position in Hennessy Advisors by 108.5% during the 3rd quarter. Susquehanna International Group LLP now owns 26,553 shares of the asset manager's stock worth $280,000 after purchasing an additional 13,819 shares in the last quarter. Finally, Citadel Advisors LLC acquired a new stake in Hennessy Advisors during the 3rd quarter valued at $218,000. 10.31% of the stock is owned by institutional investors and hedge funds.

Hennessy Advisors Company Profile

Hennessy Advisors, Inc is an investment advisory firm specializing in the management of closed-end and open-end funds, as well as separate account strategies. Serving as the investment adviser to a family of publicly traded closed-end funds and a series of mutual funds, the company focuses on generating income and total return for its shareholders by deploying a range of equity and fixed-income strategies. Hennessy Advisors is registered with the U.S. Securities and Exchange Commission and operates under the Investment Advisers Act of 1940.

The firm's product lineup includes multiple closed-end funds that invest in U.S.

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