President and CEO of Nordson Purchases $141,000 Worth of Shares
Nordson CEO Makes Notable Insider Purchase
On January 7, Sundaram Nagarajan, who serves as President and CEO of Nordson (NASDAQ: NDSN), made a significant insider acquisition, according to a recent filing with the SEC.
Details of the Transaction
A Form 4 submitted to the U.S. Securities and Exchange Commission on Wednesday revealed that Nagarajan bought 576 shares of Nordson, with the total value of the purchase reaching $141,632.
During Thursday morning trading, Nordson shares were priced at $250.88, reflecting a decrease of 0.78%.
About Nordson Corporation
Nordson specializes in producing equipment such as pumps, valves, dispensers, applicators, filters, and pelletizers, which are used for applying adhesives, coatings, sealants, and other substances. The company caters to a wide array of industries, including packaging, healthcare, electronics, and manufacturing. Its operations are divided into three main segments: industrial precision solutions, medical and fluid solutions, and advanced technology solutions. For fiscal year 2025, Nordson reported approximately $2.8 billion in revenue.
Nordson’s Financial Performance Overview
Revenue Growth: Over the past quarter, Nordson posted a revenue growth rate of 0.99% as of October 31, 2025, indicating an upward trend in sales. However, this growth lags behind the average for companies in the Industrials sector.
- Gross Margin: The company boasts a robust gross margin of 56.33%, highlighting its efficiency in managing costs and maintaining profitability compared to competitors.
- Earnings per Share (EPS): Nordson’s EPS stands at 2.7, which is above the sector average, reflecting a positive trend in net earnings.
Debt Profile: Nordson’s debt-to-equity ratio is 0.69, which is higher than the industry norm. This suggests the company relies more on debt financing, potentially increasing its financial risk.
Valuation Metrics:
- P/E Ratio: With a price-to-earnings ratio of 29.71, Nordson is trading below the industry average, which could indicate the stock is undervalued and may present an attractive investment opportunity.
- P/S Ratio: The price-to-sales ratio is 5.16, higher than the sector average, suggesting the stock may be overvalued relative to its sales.
- EV/EBITDA: The enterprise value to EBITDA ratio is 18.89, exceeding industry benchmarks and placing Nordson at a premium valuation in the market.
Market Capitalization: Nordson’s market cap is below the industry average, which may reflect limitations in growth prospects or operational scale.
The Role of Insider Transactions in Investing
Insider trades provide valuable insights for investors, but they should be considered alongside other information when making investment decisions.
Legally, an "insider" refers to any executive, board member, or major shareholder owning over 10% of a company’s shares, as defined by Section 12 of the Securities Exchange Act of 1934. This group includes top executives and large institutional investors. Insiders are required to report their trades using Form 4 within two business days of the transaction.
When insiders purchase shares, it often reflects their confidence in the company’s future performance. However, insider sales can occur for many reasons and do not always signal negative sentiment.
Understanding Transaction Codes in Insider Filings
Investors often focus on open market transactions, which are detailed in Table I of Form 4 filings. The code P indicates a purchase, S denotes a sale, C represents the conversion of an option, and A refers to grants, awards, or other acquisitions of company securities.
Insider Buying: Tracking Executive Moves
Benzinga Edge provides real-time updates on insider transactions. Stay informed about significant stock moves driven by insider activity.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Trump’s tariffs on Greenland have completely derailed the EU’s strategy of appeasement
European Council to convene urgent talks on Trump’s tariffs and EU retaliation options
As Apple Collaborates with Google to Enhance Siri with AI, Is Now the Right Time to Invest in AAPL Shares?
Crypto Markets Brace for Turbulent Times as US-EU Tensions Escalate
