54

WDFC

WD-40 ($WDFC) CFO Buys $57K in Shares After Post-Earnings Slump, Signaling Insider Confidence Amid Trade Tensions

04/15/2025 21:26

Sentiment

C-Level

Summary

  • WD-40 Company CFO Sara Hyzer purchased 256 shares ($57,044) following post-earnings price decline, potentially signaling confidence in the company's value at current levels.
  • Q2 fiscal 2025 revenue missed expectations, but net income surged 93% year-over-year with EPS significantly exceeding analyst forecasts.
  • Despite trade tensions and economic uncertainties, the company raised its fiscal 2025 outlook for both revenue and earnings.

POSITIVE

  • CFO's share purchase represents a strong signal that insiders see long-term value at current price levels.
  • Q2 net income surged 93% year-over-year with EPS rising 16%, significantly exceeding analyst expectations.
  • Strong financial position with a robust current ratio of 2.40 and manageable debt-to-asset ratio of approximately 20%.
  • Institutional investors hold about 89% of shares, indicating substantial confidence from large investors.
  • Company raised its fiscal 2025 outlook, projecting 6-11% revenue growth.

NEGATIVE

  • Q2 revenue of $146.1 million fell short of market expectations of $154.41 million.
  • Asia Pacific region experienced a 1% sales decline, showing uneven regional growth.
  • Valuation metrics (P/E 35.27, P/S 4.96) exceed industry averages, indicating premium pricing.
  • External economic factors including trade tensions, tariff increases, and currency fluctuations pose risks to future performance.

Expert

In the Consumer Durables sector, WD-40 maintains a solid position due to its brand power and strong margins. The CFO's purchase suggests the current price may present an investment opportunity, but trade uncertainties and tariff pressures could strain cost structures. The company's ability to optimize global supply chains will be crucial for future performance.

Previous Closing Price

$219.85

-2.91(1.31%)

Average Insider Trading Data Over the Past Year

$227.37

Purchase Average Price

$275.15

Sale Average Price

$106.63K

Purchase Amount

$495.28K

Sale Amount

Transaction related to News

Trading Date

Filing Date

Insider

Title

Type

Avg. Price

Trans. Value

04/22/2025

04/22/2025

Sale

$

WD-40 Company's ($WDFC) Chief Financial Officer Sara Kathleen Hyzer has purchased company shares following a post-earnings price decline. According to SEC filings, Hyzer acquired 256 shares at $222.83 per share on April 11, representing a total investment of $57,044.48. This purchase came shortly after WD-40 reported its fiscal 2025 second-quarter results on April 8. The company posted revenue of $146.1 million, a 5% year-over-year increase but below analyst expectations of $154.41 million. However, net income surged 93% to $29.9 million, while earnings per share rose 16% to $2.19, significantly exceeding analyst forecasts. Following the earnings release, WD-40's stock price dropped approximately 8.2%, falling from $237.93 on April 8 to $218.48 on April 9. Hyzer's purchase occurred immediately after this sharp decline, potentially signaling that company insiders see long-term value at current price levels. In contrast, Director William B. Noble sold shares twice in the latter half of last year. Noble divested 800 shares at $256.98 per share on October 22, 2024, and another 1,000 shares at $289.70 on November 13, 2024. Both transactions were disclosed as being related to various compensation packages including tax withholding obligations and restricted stock units. Since its founding in 1953, WD-40 has established itself as a global leader in maintenance and cleaning products. The company's flagship brands, including WD-40 Multi-Use, WD-40 Specialist, and 3-IN-ONE, are distributed worldwide through hardware stores, automotive parts outlets, and online platforms. The company maintains a solid financial position with a robust current ratio of 2.40, indicating strong liquidity to cover short-term liabilities. Its debt-to-asset ratio stands at approximately 20%, representing a manageable level of leverage. Operating cash flow for the trailing twelve months reached $70.05 million. Regional performance varied across markets, with sales in the Americas increasing 3% to $65.5 million and the EIMEA (Europe, India, Middle East, and Africa) region growing 10% to $59.6 million. However, the Asia Pacific region experienced a 1% decline to $21 million. Hyzer's stock purchase comes at a time of considerable uncertainty in U.S. markets. In early April, markets faced significant volatility driven by trade tensions and economic uncertainties stemming from President Trump's imposition of high tariffs. The U.S. dollar experienced a notable 1.7% decline on April 4, while consumer sentiment plummeted to 50.8, heightening overall economic concerns. Despite these challenges, WD-40 has raised its fiscal 2025 outlook. The company now projects net sales growth between 6% and 11%, with total revenue expected to range between $600 million and $630 million. Non-GAAP earnings per share are forecast between $5.25 and $5.55. Currently, WD-40 trades at premium valuation metrics, with a price-to-earnings (P/E) ratio of 35.27, price-to-sales (P/S) ratio of 4.96, price-to-book (P/B) ratio of 12.49, and an enterprise value to EBITDA (EV/EBITDA) ratio of 28.61. While these figures exceed industry averages, they may be justified by the company's strong profitability metrics and brand value. Notably, institutional investors hold approximately 89% of WD-40's shares, indicating substantial confidence from large investors in the company's long-term prospects. The company is focusing on enhancing its supply chain resilience by adopting more decentralized operations to respond to potential tariff impacts. Additionally, WD-40 continues to invest in brand-building activities to strengthen its market position amidst competitive pressures. As of April 15, the stock closed at $221.15, representing a decline of approximately 6.2% over the past six months, compared to a 1.4% loss for the S&P 500 during the same period. However, Hyzer's purchase may signal that the current price level presents an attractive entry point. Investors should remain mindful of external economic factors that could impact future performance, including trade tensions, currency fluctuations, and potential cost increases.

Start your 7-day free trial to access more data.

Start your 7-day free trial to access more data.

  • Access advanced features of insider transaction screener.

  • Read insider transaction news without any limits.

  • Try out BDR and WG products for free.