JELD

Major Shareholder Turtle Creek Continues Aggressive Buying as $JELD Stock Plunges 70%

04/26/2025 00:45

Door and window manufacturer JELD-WEN Holding Inc ($JELD) has seen its stock plummet by approximately 66% over the past 10 months, yet major shareholders and insiders continue to aggressively purchase shares, drawing significant attention from market observers. The stock price of $JELD has fallen from about $15 in early June 2024 to the current $5.34. Notably, the share price plunged 28.6% following the earnings release last November and dropped an additional 20% after the fourth-quarter results announcement on February 18, 2025, continuing a prolonged downtrend. From its mid-July 2024 level of $16, the stock has now declined approximately 70%. Despite this precipitous fall, major shareholder Turtle Creek Asset Management has maintained a consistent buying pattern. According to SEC filings, this investment firm has conducted numerous large-scale stock purchases from November 2024 through April 2025. Particularly noteworthy is their acquisition of approximately 1,000,000 shares (worth about $10 million) during a three-day period immediately following the sharp price drop in early November 2024. They continued their purchasing activity in February and March 2025 when the stock fell below $6, and have persisted with substantial buys in April as the price dropped to the $5 range. Company executives have also joined the buying trend. On February 24, 2025, Director David G. Nord purchased 20,000 shares at $5.96, while Director Steven E. Wynne acquired 10,000 shares at $6.01 on February 27. On March 5, EVP Matthew Meier bought 20,000 shares at $5.73, demonstrating the internal management team's confidence in the stock at current price levels. However, despite these insider buying signals, $JELD's financial performance continues to deteriorate. In the third quarter of 2024, the company reported revenue of $935 million, a 13% decrease year-over-year, with an operating loss of $52.4 million and a net loss of $74.4 million. More concerning, the fourth-quarter results announced on February 17, 2025, showed a loss of $0.10 per share and a 12.3% revenue decline to $896 million. Examining the trailing twelve months (TTM) financial data, $JELD has generated $3.78 billion in revenue with a net loss of $188 million, resulting in a profit margin of -5.01%. The company's earnings per share (EPS) stands at -$2.21, and its debt-to-equity ratio is an elevated 213.16%, indicating a vulnerable financial structure. Industry experts attribute $JELD's challenges to the housing market downturn, high mortgage rates, and reduced consumer spending due to inflation. Particularly, as of April 2025, the U.S. economy faces significant uncertainty from the Trump administration's tariff policies and trade tensions, with consumer sentiment indices trending downward. A notable development is the company's March 26 SEC filing revealing its eighth amendment to a revolving credit agreement, suggesting a focus on liquidity management. Among investors, two perspectives prevail: one views Turtle Creek Asset Management and management's aggressive buying as a positive signal reflecting the company's underlying value, while the other maintains a cautious outlook due to persistent underperformance and high debt ratios. Analysts' average price target of $6.61 suggests a potential upside of approximately 24% from current levels, though this remains significantly below historical highs. $JELD is scheduled to announce its first-quarter 2025 results on May 5, with analysts projecting a revenue decline of approximately 19.74% year-over-year to $770 million. The upcoming earnings release and management's forward guidance will likely be crucial factors determining the stock's direction. While the insider buying signals are noteworthy, prudent investors may wait for clear indications of a performance turnaround before making commitments.

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