Nordson (NASDAQ:NDSN) Reaches New 1-Year Low - Is It Time to Sell?

Nordson Co. (NASDAQ:NDSN) experienced a downturn, hitting a new 52-week low on Wednesday. The stock dipped as low as $221.99 before closing slightly higher at $222.64, with a trading volume of 74,502 shares. This is a decline from its previous close of $224.01.

Analysts Forecast Mixed Signals for Nordson

Recently, several analysts have weighed in on Nordson's stock. On December 13th, Baird R W downgraded the rating from "strong-buy" to "hold." Meanwhile, Seaport Res Ptn upgraded its rating from "hold" to "strong-buy". DA Davidson lowered its price target from $295.00 to $285.00 while keeping a "buy" rating. Additionally, Robert W. Baird maintained a "neutral" rating with a target price adjustment from $294.00 to $237.00.

Currently, there is a mix of opinions on the stock. Out of seven analysts, four have rated it as a hold, two as a buy, and one as a strong buy. The average rating given is "Moderate Buy," with a price target averaging around $279.00.

Nordson's Financial Overview

Nordson Corporation has a market cap of approximately $12.43 billion, a PE ratio of 26.81, and a price-to-earnings-growth ratio of 1.85. Its beta stands at 0.90. The company’s current ratio is 2.36, quick ratio at 1.52, and its debt-to-equity ratio is 0.49. The moving averages indicate some volatility, with a fifty-day moving average of $252.89 and a two-hundred-day moving average of $245.80.

The latest quarterly earnings report, released on December 11th, highlighted that Nordson achieved earnings of $2.78 per share, surpassing the analysts' prediction of $2.59 by $0.19. The return on equity reported was 20.12%, with a net margin of 17.37%. The company's revenue reached $744.00 million, exceeding the estimate of $736.83 million, and showing a year-over-year revenue increase of 3.5%. Analysts forecast earnings of $10.35 per share for the remainder of the year.

Insider Transactions

Recent insider activity reveals that EVP Jennifer L. Mcdonough sold 225 shares at an average price of $262.27, totaling approximately $59,010.75. Following this transaction, she owns 3,287 shares valued around $862,081.49, marking a 6.41% decrease in her holding. In another instance, EVP Stephen Lovass sold 317 shares for $82,657.75 and now holds 6,666 shares worth about $1,738,159.50, representing a 4.54% reduction in his ownership as well. Over the last 90 days, insiders collectively sold 3,629 shares for about $914,400, and currently, insiders own 0.86% of Nordson stock.

Institutional Investors' Movements

Several institutional investors have recently adjusted their holdings in Nordson. For instance, Ashton Thomas Private Wealth LLC started a new position in the second quarter worth roughly $27,000. Tortoise Investment Management LLC increased its stake by 70.7%, acquiring a total of 140 shares valued at $32,000 after purchasing an additional 58 shares. Similarly, Blue Trust Inc. raised its holdings by 130% in the third quarter, owning 161 shares valued at $42,000.

Overall, institutional investors currently hold 72.11% of Nordson's stock, showing strong interest from large investment entities.

Company Background

Nordson Corporation specializes in engineering, manufacturing, and marketing products and systems for dispensing, applying, and controlling adhesives, coatings, polymers, sealants, biomaterials, and other fluids. The company operates three segments: Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions.

Conclusion

With Nordson reaching a new low and mixed projections from analysts, investors must consider whether to hold or sell their shares. As the financial landscape shifts, it is essential for investors to stay informed regarding potential changes in stock performance and market conditions.

Nordson, Stocks, Analysts