Daily Stock Analysis: Hennessy Advisors

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The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its eighteenth stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today I'll review the first of five financial services sector stock candidates vying to be that eighteenth selection in Vista.

Today we look at a nano-cap asset management company named Hennessy Advisors Inc. Its trading ticker symbol is HNNA. This is my first ever report on Hennessy Advisors Inc for any of my dog of the week portfolios

Hennessy Advisors, Inc. is a publicly owned investment manager. It provides its services to Hennessy Funds and investment companies. 

The firm launches and manages equity, fixed income, and balanced mutual funds. It invests in the public equity and fixed income markets across the globe. 

The firm primarily invests in growth stocks of companies. It conducts in-house research to make its investments. 

Hennessy Advisors, Inc. was founded in 1989 and is based in Novato, California with additional offices in Boston, Massachusetts, and Chapel Hill, North Carolina.

I use three key data points to gauge dividend equities or funds like Hennessy Advisors Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

HNNA Price

Hennessy's price per share closed at $8.52 yesterday. A year ago its price was $10.20. Price is down $1.68 or about 16.5% on the year.

If Hennessy Advisors Inc stock trades in the range of $6 to $10 this next year, its recent $8.52 price might rise by $0.96 to reach $9.50 by January 4, 2022. 

HNNA Dividends

Hennessy's most recently declared quarterly dividend was $0.1375 paid December 2nd. Dividends are estimated to total $0.55 per share annually and yield 6.46% at Thursday's $8.52 closing price.

HNNA Gains?

Adding the $0.55 annual anticipated dividend to my $0.96 optimistic price upside shows a $1.51 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in Hennessy Advisors Inc at $8.52 per share and we'd buy 117 shares of HNNA stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us about $0.09 per share.

Subtract that maybe $0.09 brokerage cost from my estimated $1.51 gross gain per share results in a net gain of $1.42 X 117 shares = $166.14 for a 16.62% net gain on a $996.84 investment.

So it goes that Hennessy Advisors Inc shows a possible 16.6% net gain including a 6.46% dividend yield. It could be more, it could be less.  

All of the estimates above are speculation based on the past history of Hennessy Advisors Inc. Only time and money invested in this stock will determine its worth.