Confluence Loads Up on 182,305 NDSN Shares in Q2 2025

Key Points

• Confluence Investment Management added 182,305 shares worth $37.93 million to its holdings.

• Confluence's post-trade position now totals 336,090 shares valued at $72.05 million.

• Nordson now accounts for 1.02% of the fund’s holdings (526 equity positions).

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What happened

According to an SEC filing dated July 1, 2025, Confluence Investment Management LLC increased its stake in Nordson (NASDAQ:NDSN) by acquiring 182,305 additional shares during fiscal 2025's second quarter. The transaction lifted the fund’s holding in Nordson to 336,090 shares, increasing the reported position value by $41 million.

What else do you need to know?

Nordson stock now comprises 1.02% of Confluence Investment Management's reportable AUM.

Top five holdings after filing:

1. iShares 0-3 Month Treasury Bond ETF (SGOV): $238.64 million (3.4% of AUM)
2. Chubb (CB): $158.86 million (2.2% of AUM)
3. Snap-on (SNA): $156.07 million (2.2% of AUM)
4. Paychex (PAYX): $151.95 million (2.1% of AUM)
5. Northern Trust (NTRS): $150.20 million (2.1% of AUM)

Other need-to-know facts about Nordson:

• Nordson's share price closed at $221.50 on July 8, 2025.
• The stock's one-year share price change is -2.29%, and it underperformed the S&P 500 by 14.1 percentage points over the past year.
• Forward P/E is 22.1; EV/EBITDA (TTM) ratio is 18.1.
• The stock trades 16.3% below its 52-week high (as of July 8, 2025).

Company overview

Note: Trailing 12-month data is as of April 30, 2025.

Company snapshot

• Engineers and manufactures dispensing, coating, and curing systems for adhesives, coatings, polymers, sealants, biomaterials, and related fluids, serving both industrial and advanced technology applications.
• Generates revenue through the sale of proprietary equipment, systems, and related components, as well as aftermarket parts and service, with a focus on automation and precision solutions.
• Serves a global customer base across diverse end markets, including packaging, electronics, medical, and industrial sectors, with operations spanning North America, Europe, and Asia.

Nordson is a global provider of precision dispensing and processing equipment, leveraging advanced engineering to serve diverse end markets. The company’s scale and focus on specialized, high-margin applications enable it to maintain a strong competitive position in industrial and technology-driven sectors.

Foolish take

If you haven’t heard about Nordson, you likely are also unaware of what a powerful dividend-paying company it is. Nordson is a Dividend King, having increased its dividend payout annually for 61 consecutive years. The company increased its dividend by 15% last year, and appears to be on track to announce yet another meaningful hike in the coming weeks.

Nordson serves diverse end markets, including medical, electronics, consumer non-durable, and industrials, and it gets nearly 60% of its sales from outside the United States. Nordson’s product mix has undergone a sea change over the past decade, with the company generating more in recurring revenue now than ever. In 2024, for instance, 58% of Nordson's sales came from parts and consumables versus only 39% in 2014.

Buoyed by its 2024 acquisition of medical products maker Atrion, Nordson now expects to grow its annual revenue by 6% to 8% and adjusted earnings per share by 10% to 12% between 2025 and 2029. It also expects to generate nearly $4 billion in operating cash flows during the period, the bulk of which should be deployed into organic growth and dividends.

Given the backdrop, I wouldn’t be surprised if Nordson stock generates handsome returns for shareholders in the long run. The stock has more than tripled in value in the past 10 years.

Glossary

• Reportable AUM: Assets under management that must be disclosed in quarterly SEC Form 13F filings by institutional investment managers.
• SEC filing: Official documents submitted to the U.S. Securities and Exchange Commission, providing financial and ownership information about companies or funds.
• Post-trade position: The total number of shares or value held in a security after a transaction is completed.
• Dividend yield: Annual dividends per share divided by share price, expressed as a percentage.
• Forward P/E: Price-to-earnings ratio based on projected future earnings, used to assess valuation.
• EV/EBITDA: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; a valuation metric.

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Neha Chamaria 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.