Heidrick & Struggles International (NASDAQ:HSII) Shares Soar 129% Over Five Years: What's Behind the Growth?

Heidrick & Struggles International's stock has returned 129% over the past five years, driven by revenue growth of 10% and a 18% increase in the last quarter. However, earnings per share are down 30% per year, and the modest 1.3% dividend yield may not be attracting many buyers. Insiders have made significant purchases in the last year, but future earnings will be key to determining shareholder returns.

Heidrick & Struggles International (HSII) reported a mixed financial performance in the fourth quarter of 2024, with revenue growth outpacing earnings per share (EPS) decline. The company's stock has seen significant appreciation over the past five years, driven by robust revenue growth and insider buying activity.

Revenue Growth and Segment Performance

Heidrick & Struggles International reported fourth-quarter net revenue of $276.2 million, up 9.1% year-over-year [1]. This growth was driven by all segments of the business, including executive search, on-demand talent, and Heidrick consulting. Executive search revenue increased by 0.5% year-over-year, while on-demand talent revenue grew by 3.0% and Heidrick consulting revenue increased by 11.5% [1].

Earnings Per Share and Dividend Yield

Despite the revenue growth, Heidrick & Struggles International reported a net loss of $15.0 million in the fourth quarter, driven by a non-cash goodwill impairment charge of $43.3 million and an earnout fair value reduction of $800,000 [1]. Excluding these charges, adjusted net income increased by 54.2% to $22.9 million in the quarter. However, EPS fell by 30% year-over-year, from $0.67 to $0.47 [2].

The company also recently disclosed a quarterly dividend of $0.15 per share, which represents a $0.60 annualized dividend and a dividend yield of 1.3% [2]. The dividend payout ratio is currently 171.43%, which may be a concern for some investors [2].

Analyst Ratings and Stock Performance

Several analysts have recently commented on Heidrick & Struggles International's stock. Truist Financial raised their price objective on shares of HSII from $44.00 to $46.00 and gave the company a "hold" rating [2]. Barrington Research restated an "outperform" rating and set a $52.00 target price on shares of HSII [2].

Heidrick & Struggles International's stock hit a new 52-week high during trading on July 10, 2025, trading as high as $49.02 and last trading at $48.78 [2]. The stock has a market capitalization of $966.25 million, a price-to-earnings ratio of 133.89, a P/E/G ratio of 1.02, and a beta of 1.02 [2].

Future Outlook and Insider Activity

Heidrick & Struggles International forecast first-quarter revenue of between $263 million and $273 million, which ranges between a decrease of 0.8% and an increase of 2.9% year-over-year [1]. The company is also engaged in finding its next permanent CEO, with Heidrick & Struggles assisting in the search [3].

Insiders have made significant purchases in the last year, with several institutional investors and hedge funds increasing their stakes in HSII [2]. However, future earnings will be key to determining shareholder returns.

References

[1] Heidrick & Struggles International – Q4 2024. Staffing Industry. Retrieved from https://www.staffingindustry.com/news/global-daily-news/heidrick-revenue-up-91-with-growth-in-all-segments

[2] Heidrick & Struggles International, Inc. (NASDAQ:HSII - Get Free Report) reaches new 52-week high. MarketBeat. Retrieved from https://www.marketbeat.com/instant-alerts/heidrick-struggles-international-nasdaqhsii-reaches-new-52-week-high-heres-what-happened-2025-07-10/

[3] Kenvue appoints Kirk Perry as interim CEO, sees Q2 adjusted EPS of $0.28 to $0.29. Seeking Alpha. Retrieved from https://seekingalpha.com/news/4467081-kenvue-appoints-kirk-perry-as-interim-ceo-sees-q2-adjusted-eps-of-028-to-029