JELD

JELD-WEN($JELD) Insiders Pour $8.3 Million Into Shares Despite 64% Stock Collapse Over Six Months

04/24/2025 01:38

JELD-WEN Holding ($JELD) has been experiencing a significant stock price decline in 2025, yet major shareholders and executives have been consistently purchasing shares, signaling confidence and drawing investor attention. Over the past six months, $JELD's stock has plummeted approximately 64%, with a particularly sharp decline from $8.82 to $5.08 following the February earnings report. However, during this downturn, major shareholder Turtle Creek Asset Management has steadily acquired over 1,500,000 shares worth approximately $8.3 million between January and April 2025. Notably, their buying spree continued even as the stock hit its lowest points in mid-April. JELD-WEN Holding, founded in 1960, is a door and window manufacturer serving the residential construction and remodeling markets in North America and Europe. The company competes with industry peers like Masonite International, PGT Innovations, and Andersen Corporation, and until 2023, had maintained annual revenues of approximately $4 billion. However, recent financial performance has shown serious deterioration. In November 2024, $JELD reported Q3 revenues of $934.7 million, a 13% year-over-year decline, with an operating loss of $52.4 million. The downward trend continued in February 2025 when the company announced a Q4 loss of $0.10 per share, significantly missing market expectations and triggering a single-day stock price collapse of over 20%. Despite these disappointing results, insider buying has actually intensified. Beyond Turtle Creek Asset Management's consistent purchases, directors David Nord and Steven Wynne acquired 20,000 shares (approximately $120,000) and 10,000 shares (approximately $60,000), respectively, in late February. In early March, EVP Matthew Meier purchased 20,000 shares (approximately $115,000). These actions suggest company leadership believes the current stock price substantially undervalues the company. Particularly noteworthy is Turtle Creek's buying pattern. They strategically increased their positions during the two major price drops in November and January, and have been especially aggressive in April, purchasing between 50,000 and 100,000 shares almost weekly. Market analysts interpret this sustained buying by a major shareholder as reflecting medium to long-term confidence in the company. However, $JELD's financial situation remains concerning. The company currently carries a debt-to-equity ratio of 213%, while quarterly revenue has declined 12.3% year-over-year. With an operating profit margin of -5.01% and return on equity (ROE) of -25.51%, profitability has deteriorated significantly. In late March, the company also amended its revolving credit agreement, indicating active liquidity management efforts. These financial challenges are closely tied to the downturn in the U.S. housing market. Persistent high interest rates have suppressed both new construction and remodeling activity, directly impacting window and door manufacturers like $JELD. Analysts predict industry-wide recovery will likely be delayed until the Federal Reserve begins cutting interest rates. The current analyst consensus on $JELD is generally 'Hold,' with a median price target of $5.12, roughly in line with the current share price. For the upcoming Q1 2025 earnings announcement scheduled for May 5, analysts project a loss of $0.19 per share and revenue of $770 million, representing a 19.74% year-over-year decline. While the consistent insider buying demonstrates confidence in the company's long-term outlook, $JELD faces immediate challenges from the housing market slowdown and deteriorating financial performance. The Trump administration's potential easing of tariff policies could positively reduce some construction material costs, but worsening consumer sentiment and high inflation expectations continue to limit housing market recovery prospects. Investors may view $JELD's insider buying signals positively but should approach with caution until performance improvements materialize. The upcoming Q1 results and management guidance will be crucial indicators of the company's recovery potential.

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