Is Avantor Stock a Buy After the Incoming Chairman of the Board Purchased Shares Worth Over $1 Million?

Source Motley_fool

Key Points

  • A member of Avantor's Board of Directors, Gregory L. Summe, bought 100,000 shares in the company on Oct. 30, 2025.

  • Mr. Summe's purchase was valued at $1.1 million.

  • Mr. Summe will become the Chairman of the Board for Avantor in 2026.

  • These 10 stocks could mint the next wave of millionaires ›

Gregory L. Summe, who is on the Board of Avantor (NYSE:AVTR), completed an open-market purchase of 100,000 shares in the company on October 30, 2025, as disclosed in this SEC Form 4 filing. Mr. Summe will become Avantor's next Chairman of the Board at the start of 2026.

Transaction summary

MetricValue
Transaction value$1.13 million
Post-transaction shares358,111
Post-transaction value (direct and indirect ownership)$4.03 million

Transaction value calculated using the SEC Form 4 reported price ($11.25) as of October 30, 2025. Post-transaction value calculated using the SEC Form 4 reported price ($11.25).

Key questions

What was the scale and impact of this transaction on direct ownership?
Gregory L. Summe purchased 100,000 shares on October 30, 2025, representing a transaction value of ~$1.1 million. Following this trade, direct and indirect ownership totaled 358,111 shares with 300,000 held in a trust as of October 30, 2025.

How does this purchase compare to prior trading activity?
The 100,000-share transaction matches the largest single trade in Mr. Summe’s recent activity (period: May 8, 2025 to October 30, 2025), equivalent to a previous 100,000-share purchase on August 21, 2025.

What was the market context at the time of purchase?
The share price change over the trailing 12-month period ending Oct. 30, 2025 was -50.78%.

Company overview

MetricValue
Revenue (TTM)$6.67 billion
Net income (TTM)$687.40 million
Employees13,500
1-year price change(50.78%)

Note: One-year price change (calendar year basis) calculated as of October 30, 2025.

Company snapshot

Avantor is a global provider of mission-critical products and services supporting the life sciences and advanced technology industries. With a broad international footprint and diverse customer base, the company provides high-purity materials and integrated services. Avantor's competitive position is reinforced by its ability to serve complex supply chain needs across regulated industries.

Avantor offers a comprehensive portfolio of high-purity chemicals, laboratory consumables, equipment, and specialty materials, as well as services such as lab management and biopharmaceutical material scale-up.

The company generates revenue through the sale of consumables, equipment, and value-added services to clients in biopharma, healthcare, education, government, and advanced technology sectors.

Avantor's primary customers include biopharmaceutical manufacturers, research institutions, healthcare providers, and organizations requiring specialized laboratory and production solutions worldwide.

Foolish take

Gregory L. Summe's purchase of 100,000 shares in Avantor demonstrates his belief in upside for the stock. His buy came the day before shares hit a 52-week low of $10.83, indicating he thinks the stock was trading for a good price.

Avantor shares have dropped this year for a number of reasons. For starters, 2025 revenue is down year over year. In the third quarter, sales were $1.62 billion, a decrease of 5% compared to 2024.

Also in Q3, the company incurred a substantial goodwill impairment charge of $785 million, leading to a net loss of $711.8 million versus net income of $57.8 million in the previous year. In addition, the company's troubles include its CEO stepping down with Emmanuel Ligner taking over in August.

Perhaps Mr. Ligner can turn the company around, but that won't be known until Q4 earnings are released, the first full quarter under his leadership. Although Mr. Summe's October buy suggests his confidence that Avantor's business will improve, the prudent approach is to wait for Q4 results before deciding to buy.

Glossary

Open-market purchase: Buying securities directly on a public exchange, rather than through private transactions or company-issued offerings.
Director: A member of a company's board responsible for overseeing management and major business decisions.
SEC Form 4: A required filing disclosing insider trades by company officers, directors, or large shareholders.
Transaction value: The total dollar amount involved in a securities trade, calculated as shares bought or sold times the transaction price.
Direct ownership: Shares held in an individual's own name, not through trusts, funds, or indirect arrangements.
Disposed: Sold, transferred, or otherwise relinquished ownership of securities.
Reportable events: Transactions or activities that must be disclosed to regulators, such as insider trades.
Median trade size: The middle value of all trade sizes in a data set, with half larger and half smaller.
Biopharmaceutical: Relating to drugs produced using biotechnology, often for medical or therapeutic use.
Consumables: Products that are used up quickly and need regular replacement, such as laboratory supplies.
High-purity chemicals: Chemicals with very low levels of impurities, essential for laboratory and industrial applications.
TTM: The 12-month period ending with the most recent quarterly report.

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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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