JELD

As JELD-WEN($JELD) Shares Plunge 70%, Major Shareholders and Executives Keep Buying – What Do They See?

05/14/2025 11:46

As shares of JELD-WEN Holding Inc ($JELD), a U.S. manufacturer of doors and windows, have experienced a dramatic decline in recent months, significant insider buying from major shareholders and executives has caught investors' attention. Particularly noteworthy is the consistent large-scale purchasing by major shareholder Turtle Creek Asset Management, which has been steadily acquiring shares during each step of the stock's downward spiral. $JELD's stock has suffered a precipitous decline over the past year. Trading at around $16 in mid-July 2024, the shares have fallen in a stair-step pattern following quarterly earnings releases, dropping to $4.44 as of May 13, 2025—a loss of approximately 70% of its value. The stock recorded particularly sharp drops of 28.6%, 20%, and 21.8% immediately following earnings announcements in November 2024, February 2025, and early May 2025, respectively. Despite this steep decline, Turtle Creek Asset Management has maintained a steady buying pattern. According to SEC filings, the major shareholder purchased 1 million shares (worth approximately $10.36 million) in the first week of November 2024 alone, followed by 470,000 shares (approximately $3.7 million) in January 2025, and hundreds of thousands more shares in February and March. Notably, the scale of these purchases has increased with each significant drop in the stock price. Turtle Creek is not alone in its buying activity. When the stock fell to around $6 in February 2025, directors David Nord and Steven Wynne purchased 20,000 and 10,000 shares, respectively. In early March, EVP Matthew Meier also stepped in, acquiring 20,000 shares (worth approximately $114,600), signaling that management is also responding to the price decline with purchases of their own. This insider buying stands in stark contrast to the company's poor financial performance. $JELD reported Q1 2025 revenue of $776 million (a 19.1% year-over-year decline) and a net loss of $179.8 million, or $2.12 per share. This follows similarly disappointing results in Q3 2024 (13% revenue decline, $74.4 million net loss) and Q4 2024 (12.3% revenue decline, $0.10 per share loss). The company's struggles can be attributed to a combination of factors, including a slowdown in the U.S. construction market, the impact of tariff policies under the Trump administration, and the court-ordered divestiture of the Towanda facility. The company's high debt-to-equity ratio of 290.74% has further intensified concerns about its financial health. Given these circumstances, what does the consistent insider buying by executives and major shareholders signify? Financial analysts interpret this activity from two perspectives. First, insiders may believe that the current stock price significantly undervalues the company's true worth. Second, there could be positive factors or recovery strategies in progress that the market has yet to recognize. Indeed, the company is pursuing a restructuring plan aimed at delivering approximately $100 million in ongoing benefits and $50 million in short-term effects in 2025. Additionally, with a $500 million revolving credit line, its short-term liquidity remains relatively stable. Buy-side analysts maintain a largely neutral stance on $JELD. Of 11 analysts, 8 recommend 'hold' while the remainder suggest 'sell,' with a median price target of $6—indicating a potential 35% upside from the current price. At this juncture, $JELD investors must navigate between the contradictory signals of poor financial performance and consistent insider buying. While the sustained purchasing by major shareholders and executives certainly presents a positive indicator, the consecutive quarters of disappointing results and uncertain market conditions make it difficult to anticipate a dramatic recovery in the short term. Nevertheless, the insiders' actions suggest there may be hope for this company from a long-term perspective.

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