Insider Decision Unfolding At Northern Technologies: RICHARD NIGON Exercises Options, Resulting In $18K

A large exercise of company stock options by RICHARD NIGON, Director at Northern Technologies (NASDAQ:NTIC) was disclosed in a new SEC filing on July 28, as part of an insider exercise.

What Happened: The latest Form 4 filing on Monday with the U.S. Securities and Exchange Commission uncovered NIGON, Director at Northern Technologies, exercising stock options for 12,000 shares of NTIC. The total transaction was valued at $18,000.

Currently, Northern Technologies shares are trading up 13.61%, priced at $8.93 during Tuesday's morning. This values NIGON's 12,000 shares at $18,000.

Unveiling the Story Behind Northern Technologies

Northern Technologies International Corp, or NTIC is a United States-based firm that develops and markets environmentally beneficial products and services world-wide either directly or through a network of joint ventures, distributors, and agents. It operates through two segments which include ZERUST products and services and Nature-Tec products. Its main business is providing corrosion prevention solutions that are marketed under the ZERUST brand. The company also sells a portfolio of bio-based and biodegradable (compostable) polymer resin compounds and finished products marketed under the Nature-Tec brand. The ZERUST brand generates a vast majority of the revenue for the company.

Financial Insights: Northern Technologies

Revenue Growth: Northern Technologies displayed positive results in 3 months. As of 31 May, 2025, the company achieved a solid revenue growth rate of approximately 3.98%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Materials sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 38.4%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Northern Technologies's EPS reflects a decline, falling below the industry average with a current EPS of 0.01.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.15.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 25.35 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.9 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 10.38, Northern Technologies presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Important

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Northern Technologies's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.