Corvex Management Acquires Over 1 Million Shares in Heidrick & Struggles

Corvex Management LP has expanded its investment portfolio by purchasing 1,002,462 shares of Heidrick & Struggles International, Inc. (NASDAQ: HSII). This acquisition, valued at approximately $42,935,000, occurred during the first quarter of 2023, according to Holdings Channel.com. The shares represent about 1.6% of Corvex Management’s total portfolio, positioning Heidrick & Struggles as the firm’s 20th largest investment.

In addition to Corvex Management, other institutional investors have also increased their stakes in Heidrick & Struggles. Northern Trust Corp elevated its holdings by 9.5% in the fourth quarter, acquiring an additional 21,843 shares to reach a total of 251,778 shares worth approximately $11,156,000. Meanwhile, American Century Companies Inc. made a significant move by boosting its stake by 50.5% in the first quarter, bringing its total to 432,731 shares, valued at $18,534,000.

Other notable acquisitions include Banque Cantonale Vaudoise, which entered a new stake valued around $304,000, and Nuveen LLC, which acquired shares worth approximately $7,622,000. Victory Capital Management Inc. increased its holdings by 17.1% in the first quarter, now owning 23,824 shares worth $1,020,000. Currently, institutional investors and hedge funds collectively own 90.13% of Heidrick & Struggles’ stock.

Analysts provide varied insights on the stock’s performance. Barrington Research raised its price target for Heidrick & Struggles from $52.00 to $56.00, giving it an “outperform” rating. Similarly, Truist Financial increased its target from $44.00 to $46.00, maintaining a “hold” rating. Wall Street Zen upgraded the stock from a “buy” to a “strong-buy” rating, reflecting growing confidence among analysts. The consensus target price now stands at $51.00, with an overall rating of “Moderate Buy” from the analyst community.

Heidrick & Struggles’ financial performance has shown promising results. On August 4, 2023, the firm reported earnings per share (EPS) of $0.85 for the last quarter, surpassing analysts’ expectations of $0.74 by $0.11. The company generated revenue of $317.25 million, exceeding anticipated figures of $292.94 million. Heidrick & Struggles reported a net margin of 2.92% and a return on equity of 14.85%.

The company has also announced its Q3 2025 guidance for EPS, indicating positive growth expectations. Analysts project that Heidrick & Struggles will achieve an EPS of 2.68 for the current fiscal year.

In addition to its investment activities, Heidrick & Struggles recently declared a quarterly dividend of $0.15, paid on August 28, 2023. Shareholders on record as of August 14, 2023, received this payment, which amounts to an annualized dividend of $0.60 and a yield of 1.2%. The ex-dividend date was also set for August 14, 2023, with a dividend payout ratio of 37.74%.

Heidrick & Struggles International, Inc. is a prominent player in leadership consulting, executive search services, and culture shaping. It operates across various segments, including the Americas, Europe, Asia Pacific, Heidrick Consulting, and On Demand Talent Business.

For ongoing updates on Heidrick & Struggles and to track hedge fund activities, interested readers can visit HoldingsChannel.com for the latest 13F filings and insider trades related to the company.