Quanex Building Products Hits 52-Week Low: What Insider Buying Tells Us
On Tuesday, shares of Quanex Building Products Corp (Symbol: NX) fell to a new 52-week low of $22.61 each. This marks a significant decline of $16.69 per share, or -42.47%, from the 52-week high of $39.30, reached on March 28, 2024. For NX to recover back to its previous high, it would need to gain 73.82%, demonstrating fundamental resilience within the company.
Understanding Insider Behavior
Who better to assess a company’s fundamentals than its insiders? To dig deeper, we examined the trading activity of Quanex insiders during the past six months, focusing specifically on instances where they bought shares as the stock was declining to this new low. The table below summarizes these insider transactions.
| Purchased | Insider | Title | Shares | Price/Share | Value |
|---|---|---|---|---|---|
| 12/19/2024 | Scott M. Zuehlke | Senior VP, CFO & Treasurer | 435 | $23.10 | $10,048.50 |
| 12/19/2024 | George Laverne Wilson | President & CEO | 4,328 | $23.03 | $99,673.84 |
The Challenge Ahead for Investors
While the new 52-week low could suggest it’s the best buying opportunity for the year, it also means that anyone who purchased NX within that timeframe is experiencing an unrealized loss. This situation often leads to increased selling resistance as investors who bought the stock at higher prices look to exit once they break even. The chart below illustrates NX’s price movements over the past year, including its 50-day and 200-day moving averages.
As of the most recent close, NX shares stood at $22.94, just slightly above the new 52-week low. Whether the recent insider purchases indicate a coming rebound remains to be seen.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
