Nordson Recent Insider Activity

Disclosed on February 28, James E DeVries, Executive Vice President at Nordson NDSN, executed a substantial insider sell as per the latest SEC filing.

What Happened: After conducting a thorough analysis, DeVries sold 5,800 shares of Nordson. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $1,576,034.

The latest update on Thursday morning shows Nordson shares up by 0.3%, trading at $267.76.

All You Need to Know About Nordson

Nordson is a manufacturer of equipment (including pumps, valves, dispensers, applicators, filters, and pelletizers, among other equipment) used for dispensing adhesives, coatings, sealants, and other materials. The firm serves a diverse range of end markets including packaging, medical, electronics, and industrial. Nordson's business is organized into three segments: industrial precision solutions, medical and fluid solutions, and advanced technology solutions. The company generated approximately $2.6 billion in revenue in its fiscal 2023.

Nordson: Financial Performance Dissected

Revenue Growth: Nordson displayed positive results in 3 months. As of 31 January, 2024, the company achieved a solid revenue growth rate of approximately 3.72%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Navigating Financial Profits:

• Gross Margin: With a high gross margin of 55.03%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Nordson's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.92.

Debt Management: Nordson's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.64, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 31.22, Nordson's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 5.8, Nordson's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Nordson's EV/EBITDA ratio stands at 20.79, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Why Insider Activity Matters in Finance

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Nordson's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.