Have any insiders of Nordson Corporation (NASDAQ: NDSN) sold their shares?
Anyone interested in Nordson Corporation (NASDAQ: NDSN) should probably know that Executive Vice President Gregory Merk recently sold US $ 266,000 of shares in the company, at an average price of US $ 221 each. On the positive side, this sale was only 2.0% of their stake, so we doubt it was very meaningful, on its own.
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Nordson Insider Trading in the Past Year
In the past year or so, we can see that the biggest insider sale has come from Executive Vice President Jeffrey Pembroke for $ 1.1 million in shares, at around $ 195 per share. So it’s clear that an insider wanted to take money off the table, even below the current price of US $ 220. Generally, we find it disheartening when insiders sell below the current price, as it suggests they were happy with a lower valuation. However, while insider selling can be daunting at times, this is only a weak signal. We note that the biggest single sale was only 26% of Jeffrey Pembroke’s stake.
Nordson insiders have not bought any shares in the past year. The chart below shows insider trading (by businesses and individuals) over the past year. If you want to know exactly who sold, for how much and when, just click on the graph below!
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Nordson insider ownership
Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. We generally like to see fairly high levels of insider ownership. It’s great to see that Nordson insiders own 8.0% of the company, worth around $ 1.0 billion. This type of large insider ownership generally increases the chances that the business will be run in the best interests of all shareholders.
What might insider trading at Nordson tell us?
An insider recently sold stocks, but they haven’t bought any. Looking at the past twelve months, our data shows no insider buying. It’s good to see a high number of Insider Owners, but insider selling leaves us cautious. So these insider trading can help us build a thesis on the stock, but it’s also worth knowing the risks this company faces. During our analysis, we found that Nordson has 2 warning signs and it would be unwise to ignore them.
Of course, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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