JELD

JELD-WEN($JELD) Insiders Aggressively Buy Shares While Stock Plummets 60%, Signaling Potential Value Play

03/25/2025 21:28

JELD-WEN Holding Inc ($JELD) has seen its share price plummet by approximately 60% over the past six months, yet significant insider buying continues to attract investor attention. The window and door products manufacturer has experienced sharp stock declines following earnings announcements in November 2024 and February 2025. The share price, which traded above $15 six months ago, now hovers around $6, approaching its 52-week low. Market capitalization has likewise shrunk from about $800 million to around $500 million. Despite this decline, notable insider purchasing activity has persisted. Major shareholder Turtle Creek Asset Management Inc has consistently made substantial purchases during price downturns. Between November 5-7, 2024, they acquired 1 million shares (approximately $10.37 million) over three days, followed by another 395,000 shares (about $3.07 million) in January 2025. Most recently, from late February through March 21, 2025, they purchased over 350,000 additional shares. Particularly noteworthy is that company directors and executives have recently joined in buying with personal funds. On February 24, 2025, Director David G. Nord purchased 20,000 shares (about $120,000), followed by Director Steven E. Wynne acquiring 10,000 shares (approximately $60,000) on February 27. Additionally, EVP Matthew Meier bought 20,000 shares (about $115,000) on March 5. These purchases all occurred shortly after the mid-February earnings release that triggered a significant price drop. This insider buying pattern contrasts with JELD-WEN's recent poor financial performance. The company reported a Q4 2024 loss of $0.10 per share, with revenue declining 12.3% year-over-year to $895.7 million. Annual revenue for 2024 decreased by 5.3% to $3.78 billion, and the company has consecutively lowered guidance. The performance struggles largely stem from the U.S. housing market slowdown and decreased remodeling demand. As a supplier of windows and doors for new construction and remodeling markets, JELD-WEN has been directly impacted by rising interest rates and housing construction weakness. Financially, JELD-WEN faces significant challenges. Its debt-to-equity ratio stands at a concerning 189.3%, and the company recorded an annual net loss of approximately $188 million in recent reporting, with earnings per share (EPS) at -$2.21. Nevertheless, persistent insider buying may reflect insiders' belief that current difficulties are temporary and that the stock is undervalued relative to its intrinsic worth. Major shareholder Turtle Creek Asset Management has consistently strengthened its position during price declines. Analysts generally maintain cautious positions. Recent reports indicate most analysts hold 'hold' ratings, with a recent price target reduction to $9.50. While this exceeds the current price, it represents a significant decrease from targets above $16 six months ago. JELD-WEN's future performance improvement will likely depend heavily on U.S. housing market recovery and interest rate cuts. With the Federal Reserve expected to begin rate cuts this year, gradual housing market recovery could benefit JELD-WEN. Investors should closely monitor JELD-WEN's upcoming earnings reports and insider trading patterns. While recent insider purchases signal positive sentiment, caution remains advisable until fundamental performance improvements and debt burden reductions materialize.

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