Major Purchase Alert: Steven A Brass Invests $72K In WD-40 Stock

A significant insider buy by Steven A Brass, President and CEO at WD-40 (NASDAQ:WDFC), was executed on October 30, and reported in the recent SEC filing.

What Happened: In a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, it was disclosed that Brass bought 362 shares of WD-40, amounting to a total of $72,566.

In the Thursday's morning session, WD-40's shares are currently trading at $195.76, experiencing a up of 2.27%.

Unveiling the Story Behind WD-40

WD-40 Co is a global marketing organization focused on developing and selling products that solve maintenance and cleaning problems internationally. It offers two product groups: maintenance products, including the flagship WD-40 Multi-Use Product, which serves as a lubricant, rust preventative, penetrant, and moisture displacer, marketed globally; and homecare and cleaning products, mainly sold in North America, the UK, and Australia. The company distributes its products through hardware stores, automotive parts outlets, industrial suppliers, mass retailers, online platforms, and specialty retailers across the Americas, EIMEA, and Asia-Pacific, with the majority of revenue generated in the Americas.

Unraveling the Financial Story of WD-40

Revenue Growth: WD-40 displayed positive results in 3 months. As of 31 August, 2025, the company achieved a solid revenue growth rate of approximately 4.8%. This indicates a notable 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 Consumer Staples sector.

Profitability Metrics: Unlocking Value

  • Gross Margin: The company sets a benchmark with a high gross margin of 54.71%, reflecting superior cost management and profitability compared to its peers.

  • Earnings per Share (EPS): WD-40's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.57.

Debt Management: With a below-average debt-to-equity ratio of 0.36, WD-40 adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding Financial Valuation:

  • Price to Earnings (P/E) Ratio: WD-40's current Price to Earnings (P/E) ratio of 28.64 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

  • Price to Sales (P/S) Ratio: The current P/S ratio of 4.19 is above industry norms, reflecting an elevated valuation for WD-40's stock and potential overvaluation based on sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 23.23 reflects market recognition of WD-40's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Delving Into the Significance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Exploring Key Transaction Codes

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 WD-40's Insider Trades.

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

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