Investment Analysis Report on Large-Scale Stock Sale by Knowles Corp (KN) CEO

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Based on SEC Form 144 filings and recent insider trading records, Knowles Corp President and CEO

conducted multiple stock sales between August 2025 and January 2026 [0][1]:

Trade Date	Shares Sold	Trade Proceeds	Trade Type
October 31, 2025	98,252	$2,330,026.53	Planned Sale
November 3, 2025	38,404	$904,402.68	Planned Sale
December 4, 2025	25,000	$587,500.00	Planned Sale
December 10, 2025	25,000	$600,000.00	Planned Sale
January 15, 2026	50,000	$1,237,500.00	Form 144

• Total Shares Sold:
  236,656 shares
• Total Proceeds:
  $5,659,429.21
• Average Sale Price:
  $23.91 per share

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The CEO’s stock sales exhibit clear

:

• Sales Before Earnings Release:
  The sales on October 31, 2025 and November 3, 2025 (totaling $3.23 million in proceeds) occurred before the release of Q3 earnings, which showed EPS exceeded expectations [2]
• Mid-Quarter Sales:
  The two sales in December (totaling $1.18 million in proceeds) occurred after Q3 earnings and before Q4 earnings
• New Sale Plan:
  The Form 144 filing dated January 15, 2026 indicates a planned sale of 50,000 shares, expected to be executed before the release of Q4 earnings [1]

This

warrants investor attention:

Behavioral Feature	Potential Signal
Selling when stock price is near 52-week high	CEO may believe current valuation fully reflects intrinsic value
Multiple phased sales	Compliant with 10b5-1 trading plan requirements, reducing insider trading suspicion
Choosing to sell before earnings release	May possess information advantage, anticipating post-earnings stock price movement

While Niew sold over

over 5.5 months, the proportion is manageable relative to his total holdings and the company’s total shares:

• Total Outstanding Shares:
  85,151,884 shares [0]
• Proportion of This Sale:
  Approximately
  0.28%
  (this Form 144 filing)
• Proportion of Recent Sales to Total Holdings:
  Approximately
  1.5-2%
  (based on historical shareholding estimates)

• CEO still holds a significant number of company shares, aligning interests
• The sale has not triggered concerns of a large-scale sell-off
• Consistent with common practices for monetizing executive compensation incentives

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Based on the latest financial analysis [0][3]:

Financial Dimension	Assessment Result
Financial Stance	Conservative (high depreciation/capital expenditure ratio)
Debt Risk	Low Risk
Profitability	ROE 5.22%, Net Profit Margin 6.85%
Cash Flow	Q3 Operating Cash Flow $29.1M, Healthy Free Cash Flow

• Market Capitalization: $2.05B
• P/E Ratio:
  52.51x
  (significantly higher than industry average of 25x)
• P/B Ratio: 2.74x
• P/S Ratio: 3.57x

Knowles’ current valuation faces market divergence:

Positive Factors	Negative Factors
Sequential Revenue Growth (Q3 YoY +7%)	P/E 52.5x significantly deviates from industry average
Improved Gross Profit Margin (reached 45.7% in Q3)	Limited expected Q4 revenue growth
Declining debt levels	CEO continues to sell shares at highs
Analyst Consensus Target Price $28.0 (+16.4%)	Beta 1.5, high volatility

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Based on technical analysis data [0]:

• Trend Type:
  Uptrend (breakout pending confirmation)
• Trend Score:
  6.5 out of 10
• MACD Signal:
  Bullish bias (no death cross)
• KDJ Indicator:
  Bearish bias (K value 77.2, D value 78.0)

Price Type	Price	Implication
Current Price	$24.05	Near 52-week high
52-Week High	$25.24	Key Resistance Level
Key Support	$23.58	Short-Term Support Level
Next Target	$25.93	Upside target after breakout

The stock price is at a relatively high level, close to a strong resistance zone, making chasing the rally at current levels high-risk.

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Interpretation Dimension	Assessment	Weight
Sale Timing	Sold near stock price highs	⚠️ Neutral-Bearish
Sale Scale	High proportion but not a full liquidation	⚖️ Neutral
Sale Frequency	Conducted in batches, compliant with rules	✅ Bullish
CEO Shareholdings	Still holds a significant number of shares	✅ Bullish
Company Performance	Q3 earnings exceeded expectations	✅ Bullish
Valuation Level	Elevated P/E ratio	⚠️ Bearish

⚠️

While the CEO’s sale

, his timing choice (near 52-week high) and frequency (5 sales) warrant attention. Taking all factors into account:

1. Reasons for Caution:
   • As the person most familiar with the company, the CEO chose to monetize at historical highs
   • Current P/E 52.5x is significantly overvalued, with pullback risk
   • Selling before earnings releases may reflect conservative expectations for short-term performance

2. Positive Factors:
   • CEO still holds substantial shares, with interests not fully decoupled
   • Compliant with 10b5-1 plan sales, reducing insider trading suspicion
   • Company fundamentals have improved, with enhanced profitability

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Investor Type	Recommendation	Rationale
Short-Term Traders	Caution/Watch	Stock price near resistance level + CEO stock sale + pre-earnings uncertainty
Medium-Term Investors	Accumulate on Pullbacks	Consider initiating positions if price pulls back to the $22-23 range
Long-Term Investors	Monitor Fundamental Changes	Monitor Q4 earnings and 2026 guidance
Risk-Averse Investors	Avoid	Elevated P/E ratio + executive stock sale + high Beta

1. Near-Term Catalysts:
   • February 5, 2026: FY2025 Q4 Earnings Release
   • Analysts will closely monitor 2026 performance guidance

2. Risk Events:
   • Exercise caution if the CEO continues large-scale share sales
   • Q4 earnings falling short of expectations may trigger a valuation pullback
   • A shift in market sentiment may lead to a valuation correction

3. Entry Timing Recommendations:
   • Wait for the stock price to pull back to the $22-23 range
   • Consider chasing the rally if price breaks through $25.24 and stabilizes

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CEO Jeffrey Niew sold over

over 5.5 months, which is a , but should not be overinterpreted as purely bearish:

Core View	Details
Interpretation of CEO’s Stock Sale	Neutral-Cautious: Suboptimal timing, but compliant with rules and not a full liquidation
Valuation Judgment	Current P/E 52.5x is elevated, with an unattractive risk-reward ratio
Investment Strategy	Recommend holding/watching or waiting for a pullback before initiating positions
Risk Warning	Pre-earnings uncertainty + executive stock sale + high valuation pressure

🟡 (C+, 6.5/10)

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[0] Gilin API Data - Knowles Corp Real-Time Quotes, Technical Analysis, and Financial Data (https://gilin-data.com)

[1] SEC.gov - Knowles Corp Form 144: Report of proposed sale of securities (https://www.sec.gov/Archives/edgar/data/1587523/000195004726000491/0001950047-26-000491-index.htm)

[2] SEC.gov - Knowles Corp Form 4: Statement of changes in beneficial ownership (https://www.sec.gov/Archives/edgar/data/1587523/000159808625000002/0001598086-25-000002-index.htm)

[3] SEC.gov - Knowles Corp Q3 2025 8-K Filing (https://www.sec.gov/Archives/edgar/data/1587523/000158752325000077/kn-20251023.htm)