FUL

H.B. Fuller ($FUL) CEO Buys $198K in Shares After Stock Plunges 30% in Six Months

04/01/2025 19:19

The President of adhesives manufacturer H.B. Fuller Company ($FUL), Celeste Beeks Mastin, has recently purchased company stock amid a significant share price decline. This move is being interpreted as a strong signal of management's confidence in the company's long-term outlook. $FUL has declined approximately 30% over the past six months and currently trades around $56. The stock plummeted from highs of around $85 to as low as $53 following disappointing earnings earlier this year, though it has recently shown modest signs of recovery. According to SEC filings, President Mastin purchased 3,500 shares at $56.66 per share on April 1, with the transaction totaling approximately $198,310. The transaction involved restricted stock units (RSUs) that convert into shares of common stock on a 1-for-1 basis, with vesting over a three-year period. Notably, this purchase came shortly after $FUL's quarterly earnings announcement. In its Q1 2025 results released on March 26, H.B. Fuller reported net revenue of $789 million, down 2.7% year-over-year, though organic revenue increased by 1.9%. Net income stood at $13 million with diluted EPS of $0.24. After this earnings release, the stock surged 7.4% in after-hours trading but subsequently declined following analyst price target reductions. In contrast to Mastin's purchase, there were notable insider sales preceding it. In July 2024, when the stock was near its peak, officers Robert J. Martsching and Heather Campe sold 7,292 shares ($590,258) and 23,696 shares ($1,958,763), respectively. Additionally, in January 2025, officer Xinyu Du consecutively sold a total of 309 shares ($19,689) just before the January earnings announcement. H.B. Fuller ranks as the world's fourth-largest manufacturer of adhesives and sealants, operating 81 manufacturing facilities across 26 countries and employing approximately 7,500 people. For fiscal year 2024, the company reported revenue of $3.57 billion, operating income of $348 million, and net income of $130 million. Despite recent performance challenges, the company has reported positive signs of moderating raw material cost inflation. However, the CEO has expressed caution regarding weak market demand and geopolitical uncertainties. Wall Street analysts maintain an average rating of 'hold' for the stock, with JP Morgan recently cutting its price target to $60 and Baird reducing its target from $73 to $60. Barird specifically highlighted significant macroeconomic uncertainty while acknowledging $FUL's effective internal initiatives and limited tariff exposure. Year-to-date, $FUL has declined more than 15%, with Baird maintaining a 'neutral' rating under current market conditions. In this context, the CEO's substantial purchase may reflect management's internal view that the stock is undervalued. Historically, insider buying, particularly by CEOs, often serves as a positive signal for stock performance. However, investors should consider that weakened market demand and geopolitical uncertainties may continue to constrain the company's growth. The company is targeting adjusted EBITDA of $600 million to $625 million for fiscal 2025, indicating a focus on cost control and pricing initiatives. If these efforts prove successful, the current stock decline could present an opportunity for long-term investors.

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