Ginger M Jones, Board Member at Nordson (NASDAQ:NDSN), reported an insider buy on November 3, according to a new SEC filing.
What Happened: Jones made a significant move by purchasing 822 shares of Nordson as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $190,662.
As of Tuesday morning, Nordson shares are down by 0.0%, currently priced at $229.66.
Delving into Nordson's Background
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.
Financial Milestones: Nordson's Journey
Revenue Growth: Nordson displayed positive results in 3 months. As of 31 July, 2025, the company achieved a solid revenue growth rate of approximately 12.08%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Analyzing Profitability Metrics:
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Gross Margin: With a high gross margin of 54.82%, the company demonstrates effective cost control and strong profitability relative to its peers.
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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 2.23.
Debt Management: Nordson's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.74, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Valuation Metrics: A Closer Look
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Price to Earnings (P/E) Ratio: The P/E ratio of 28.89 is lower than the industry average, implying a discounted valuation for Nordson's stock.
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Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.72, Nordson's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Nordson's EV/EBITDA ratio, surpassing industry averages at 18.27, positions it with an above-average valuation in the market.
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
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Why Insider Transactions Are Key in Investment Decisions
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Breaking Down the Significance of Transaction Codes
In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.
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