On January 7, Srinivas Subramanian, Executive Vice President at Nordson (NASDAQ:NDSN) executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: Subramanian demonstrated confidence in Nordson by purchasing 519 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the transaction is $127,616.

At Thursday morning, Nordson shares are down by 0.78%, trading at $250.88.

Discovering Nordson: A Closer Look

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 $2.8 billion in revenue in its fiscal 2025.

Nordson's Financial Performance

Revenue Growth: Over the 3 months period, Nordson showcased positive performance, achieving a revenue growth rate of 0.99% as of 31 October, 2025. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Profitability Indicators:

• Gross Margin: The company excels with a remarkable gross margin of 56.33%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Nordson's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.7.

Debt Management: Nordson's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.69, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 29.71, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 5.16 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Nordson's EV/EBITDA ratio of 18.89 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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.

Deciphering Transaction Codes in Insider Filings

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 Nordson's Insider Trades.

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