Knowles Insiders Sold $9.8M Amid 4 EPS Beat Streak
Four consecutive EPS beats and 14.3% revenue growth support the bull case for Knowles Corporation, but CEO Jeffrey Niew and CFO John S. Anderson sold $9.8 million in shares between late July and mid-A
Knowles Insiders Sold $9.8M at $36, $39 Before Q3 Report
NEW YORK, October 15 —
Four consecutive EPS beats and 14.3% revenue growth make a strong case for Knowles Corporation (KN), but the executives who built that record collectively sold $9.83 million in shares between late July and mid-August at prices all above the stock's current $34.88, with Q3 results due Thursday.
- CEO Jeffrey Niew sold approximately 200,000 shares over three days in August for roughly $7.79 million per Form 4 filings.
- Knowles has beaten EPS estimates four consecutive quarters; trailing revenue hit $0.64 billion on improving margins.
- Analyst consensus target is $43.75, implying roughly 25% upside; all insider sales executed above today's $34.88.
The Selling Pattern
CEO Jeffrey Niew sold approximately 200,000 shares across August 12-14 per Form 4 filings for roughly $7.79 million. CFO John S. Anderson sold 40,000 shares on August 12-13 for $1.56 million. Director Cheryl L. Shavers and Chief HR Officer Raymond D. Cabrera added approximately $484,000 in July, August. All four sellers cleared between $36.28 and $39.28 per share, every transaction above the current trading level. Insider ownership sits at 1.8% following the activity. Four executives, zero purchases in the 90-day window.
A 21x Multiple Priced for Execution
Knowles makes precision capacitors, RF filters, and microwave components for defense and industrial customers through its Precision Devices segment, and balanced armature speakers for hearing aids through Medtech and Specialty Audio. The company has beaten EPS estimates in each of the four most recent quarters by margins ranging from 2.3% to 12.6%, with trailing revenue at $0.64 billion. Gross margin runs at 45.3% with $104 million in operating cash flow on a trailing basis. At a 21.6x forward earnings multiple (stress-test it against sector history in the P/E calculator), the stock was already pricing in continued execution precisely when insiders chose to exit.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| KN | $3.0B | 21.6x | +48.0% |
| EVTC | $1.9B | 7.1x | +4.3% |
| MEI | $508M | 34.8x | +93.9% |
| CTS | $1.6B | 19.3x | +34.8% |
| CNXN | $2.3B | 20.5x | +50.7% |
| BHE | $2.7B | 22.5x | +79.9% |
If Thursday Breaks the Streak
Thursday's Q3 results are the first real test. The analyst consensus target of $43.75 implies roughly 25% upside, and the beat streak gives that number footing. The specific figure that would validate the bull case: EPS above consensus with revenue sustaining the trailing growth pace. A guidance cut or margin compression below 45.3% would retroactively reframe August's selling as prescient rather than routine. The honest call ahead of the report is neutral: the beat streak supports the upside case, but $9.83 million in open-market sales by four executives with zero purchases is a credible counter-signal. Run the free Knowles Corporation deep-dive before Thursday →
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Frequently Asked Questions
Why did Knowles insiders sell stock before earnings?
CEO Jeffrey Niew sold approximately 200,000 shares across August 12-14 for roughly $7.79 million, and CFO John S. Anderson sold 40,000 shares on August 12-13 for $1.56 million. All sales executed at prices between $36.28 and $39.28 per share, above the current stock price of $34.88. Zero insider purchases occurred in the same 90-day window.
What is Knowles' recent financial performance?
Knowles has beaten EPS estimates in four consecutive quarters with trailing revenue of $0.64 billion and gross margin of 45.3%. The company reported 14.3% revenue growth and $104 million in operating cash flow on a trailing basis. The stock trades at a 21.6x forward earnings multiple.
When are Knowles Q3 earnings due?
Q3 results are due Thursday, October 17. This is the first test of whether the company can sustain its four-quarter beat streak, with analyst consensus targeting $43.75 per share, implying roughly 25% upside from current levels.
What does the insider selling timing signal?
The article frames the $9.8 million in sales by four executives as a counter-signal amid strong operational results. While the beat streak supports the bull case, the timing and price levels of insider activity present uncertainty ahead of the earnings report.
Knowles Corporation reports third-quarter earnings on Thursday after four consecutive EPS beats — but the CEO, CFO, Chief HR Officer, and a board director collectively sold $9.83 million in shares between late July and mid-August at prices ranging from $36.28 to $39.28, all above the stock's current price of $34.88.