Bullish Move: Michael J Merriman Shows Confidence, Acquires $190K In Nordson Stock
It was revealed in a recent SEC filing that Michael J Merriman, Board Member at Nordson (NASDAQ:NDSN) made a noteworthy insider purchase on November 3,.
What Happened: In a Form 4 filing on Monday with the U.S. Securities and Exchange Commission, it was disclosed that Merriman bought 822 shares of Nordson, amounting to a total of $190,662.
In the Tuesday’s morning session, Nordson‘s shares are currently trading at $229.66, experiencing a down of 0.0%.
Get to Know Nordson Better
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 Insights: Nordson
Revenue Growth: Nordson’s revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2025, the company achieved a revenue growth rate of approximately 12.08%. This indicates a substantial increase in the company’s top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.
Analyzing Profitability Metrics:
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Gross Margin: The company sets a benchmark with a high gross margin of 54.82%, reflecting superior cost management and profitability compared to its peers.
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Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.23, Nordson showcases strong earnings per share.
Debt Management: Nordson’s debt-to-equity ratio surpasses industry norms, standing at 0.74. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Financial Valuation Breakdown:
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Price to Earnings (P/E) Ratio: Nordson’s P/E ratio of 28.89 is below the industry average, suggesting the stock may be undervalued.
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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): With an EV/EBITDA ratio of 18.27, the company’s market valuation exceeds industry averages.
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.
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.
A Closer Look at Important Transaction Codes
Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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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