Is H.B. Fuller Stock a Buy, Sell or Hold After the CFO Sold Shares?

On October 27, 2025, H.B. Fuller Company (NYSE:FUL) Executive VP and CFO John Corkrean exercised 16,672 options and sold 14,222 shares of common stock in an open-market transaction valued at approximately $857,800, according to an SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average purchase price ($60.31); post-transaction value based on Oct. 27, 2025 market close ($60.09).

Key questions

How significant was the sale relative to John Corkrean's direct holdings?
The 14,222 shares sold represented 20.65% of Corkrean's direct stake immediately prior to the transaction, reducing his direct ownership from 68,868 to 54,646 shares.

What was the nature of this transaction and how does the derivative context affect interpretation?
The transaction involved exercising 16,672 stock options, followed by the immediate sale of 14,222 shares. This structure indicates the disposition was linked to option exercise rather than a pure discretionary sale.

How does the transaction price compare to recent market levels and the company's recent stock performance?
Shares were sold at a weighted average price of $60.31. H.B. Fuller Company closed at $60.09 on the transaction date and was priced at $57.37 as of October 31, 2025. The stock’s one-year total return was -20.34% as of October 27, 2025, indicating the disposition occurred during a period of significant price weakness.

What does this transaction indicate about historical trading activity by the insider?
This was the only sell transaction reported for Mr. Corkrean in the last two years. All other Form 4 filings in that period were administrative in nature, with no prior open-market sales reported between November 2022 and October 2025.

Company overview

* 1-year price change calculated using October 27, 2025 as the reference date.

Company snapshot

H.B. Fuller Company is a global specialty chemicals manufacturer with a broad portfolio of adhesives and related products serving diverse end markets. The company leverages over a century of technical expertise and a segmented approach to address both industrial and consumer needs. Its scale, innovation capabilities, and diversified customer base support its position as a leading supplier in the specialty chemicals industry.

H.B. Fuller Company produces adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products across three segments: hygiene, health and consumable adhesives; engineering adhesives; and construction adhesives.

The company generates revenue primarily through the formulation, manufacturing, and distribution of specialty chemical products to industrial, commercial, and consumer markets worldwide. Its main customers include manufacturers in packaging, hygiene products, construction, transportation, electronics, and consumer goods sectors.

Foolish take

H.B. Fuller Company CFO John Corkrean exercised a large chunk of shares, but the sale isn't necessarily a red flag. He still owns the bulk of his stock.

Still, the timing of the sale, while shares were well below the 52-week high of $80.15 reached last November, suggests he doesn't see the stock price rising any time soon. This makes sense since H.B. Fuller is having a rough year.

In the company's fiscal third quarter, ended Aug. 30, revenue was down 3% year over year to $892 million. Moreover, H.B. Fuller expects to end its 2025 fiscal year with sales down between 2% and 3% compared to the prior year.

In addition to the lower sales, the company holds substantial debt. At the end of fiscal Q3, H.B. Fuller's net debt totaled nearly $2 billion, resulting in a net debt-to-adjusted EBITDA ratio of 3.3x. That's better than the 3.4x at the end of Q2, but still on the high side.

The large debt and declining revenue suggest now is not a good time to invest in H.B. Fuller. However, for existing shareholders, the company is not in such a dire state that following in the CFO's footsteps to sell shares now is a necessity. The prudent approach is to wait for the next few earnings reports to see how the company is doing over time before deciding to buy or sell its stock.

Glossary

Executive VP: Executive vice president, a senior corporate officer reporting directly to the chief executive officer.
CFO: Chief financial officer, responsible for managing a company's financial actions and strategy.
Options (stock options): Contracts granting the right to buy company shares at a set price within a specific period.
Option exercise: The act of using stock options to purchase company shares at the predetermined price.
Open-market transaction: Buying or selling securities on a public exchange rather than through private arrangements.
Form 4: A U.S. SEC filing disclosing insider trades by company officers, directors, or major shareholders.
Direct ownership: Shares held personally by an individual, not through trusts or indirect means.
Weighted average purchase price: The average price paid per share, weighted by the number of shares in each transaction.
Disposition: The act of selling or otherwise transferring ownership of an asset, such as company stock.
Derivative context: Refers to transactions involving financial instruments like options, not just direct stock trades.
Administrative filing: A regulatory disclosure for non-trading events, such as grants or transfers, not involving open-market sales.
TTM: The 12-month period ending with the most recent quarterly report.

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.