Nordson EVP Makes $344K Stock Purchase

On December 23, Sarah Siddiqui, EVP at Nordson NDSN executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: Siddiqui demonstrated confidence in Nordson by purchasing 1,642 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the transaction is $344,376.

Monitoring the market, Nordson's shares up by 0.11% at $209.53 during Tuesday's morning.

All You Need to Know About Nordson

Nordson manufactures equipment (including pumps, valves, dispensers, applicators, filters, and pelletizers) 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 $2.7 billion in revenue in its fiscal 2024.

Nordson: Delving into Financials

Revenue Growth: Nordson's revenue growth over a period of 3 months has been noteworthy. As of 31 October, 2024, the company achieved a revenue growth rate of approximately 12.53%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Analyzing Profitability Metrics:

• Gross Margin: With a high gross margin of 54.11%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.14, Nordson showcases strong earnings per share.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.75, caution is advised due to increased financial risk.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 25.81 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.48, 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 of 17.44 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Illuminating the Importance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes To Focus On

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.

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