Nordson (NDSN) Surges 5.97% on Q3 Earnings Beat and Strategic Repurchase Authorization

Summary
• Nordson (NDSN) surges 5.97% to $226.26, hitting an intraday high of $235.71
• Q3 adjusted EPS of $2.73 beats estimates, with 13% YoY growth
• $500M share repurchase authorization and 180% free cash flow conversion drive optimism
• Technicals show short-term bearish momentum but long-term range-bound consolidation
Nordson’s stock is trading at its highest level since November 2024, fueled by robust Q3 results and strategic capital allocation. The company’s 12% YoY revenue growth, 32% EBITDA margin, and $500M buyback authorization have ignited investor enthusiasm. With the stock trading 14% below its 52-week high, the move reflects confidence in management’s ability to navigate macroeconomic headwinds.

Q3 Earnings Beat and Strategic Repurchase Drive Sharp Rally
Nordson’s 5.97% intraday surge is directly attributable to its Q3 fiscal 2025 results, which exceeded expectations across all metrics. The company reported $742M in sales (+12% YoY), adjusted EPS of $2.73 (+13% YoY), and EBITDA of $239M (32% of sales). The Advanced Technology Solutions segment delivered 15% organic growth, while the Medical and Fluid Solutions segment surged 32% YoY. Management’s $500M share repurchase authorization and 180% free cash flow conversion ratio further signaled disciplined capital allocation, reinforcing investor confidence in the company’s ability to generate shareholder value.

Options Playbook: Leveraging Volatility and Gamma for Short-Term Gains
• 200-day MA: $215.38 (below current price)
• RSI: 49.18 (neutral)
• MACD: -0.202 (bearish) vs. signal line -0.274
• Bollinger Bands: $207.79 (lower) to $222.53 (upper)
• Implied volatility: 23.55–33.90% (moderate)
Nordson’s technicals suggest a short-term bearish bias but long-term consolidation. Key support at $212.06–213.99 (200D range) and resistance at $220.66–220.94 (30D range) define the near-term trading zone. The stock’s 5.97% intraday move has created high-gamma options opportunities for directional plays.
Top Option 1: NDSN20250919C230
• Code: NDSN20250919C230
• Type: Call
• Strike: $230
• Expiry: 2025-09-19
• IV: 24.56% (moderate)
• Leverage: 48.82% (high)
• Delta: 0.4169 (moderate)
• Theta: -0.1853 (high decay)
• Gamma: 0.0245 (high sensitivity)
• Turnover: $240,485 (liquid)
This call option offers high leverage and gamma, ideal for a 5% upside scenario. If Nordson closes above $230 by expiration, the contract could deliver 105%+ returns. The high gamma ensures rapid delta expansion as the stock approaches the strike.
Top Option 2: NDSN20250919C240
• Code: NDSN20250919C240
• Type: Call
• Strike: $240
• Expiry: 2025-09-19
• IV: 22.01% (moderate)
• Leverage: 167.08% (very high)
• Delta: 0.1799 (low)
• Theta: -0.0986 (moderate decay)
• Gamma: 0.0184 (moderate)
• Turnover: $52,063 (liquid)
This deep-out-of-the-money call provides explosive leverage (167%) for a 5% upside. While delta is low, the high gamma and moderate theta make it a speculative play for aggressive bulls expecting a breakout above $240.
Action: Aggressive bulls may consider NDSN20250919C230 into a bounce above $230, while NDSN20250919C240 offers high-risk, high-reward potential for a sustained rally.

Backtest Nordson Stock Performance
The backtest of NDSN's performance after an intraday increase of 6% shows mixed results. While the stock experienced a positive surge, the returns faded over time. The 3-day win rate was 50.09%, the 10-day win rate was 52.83%, and the 30-day win rate was 55.23%, indicating a higher probability of positive returns in the short term. However, the maximum return during the backtest period was only 0.60%, which suggests that while the stock had the potential for gains, they were relatively modest.

Bullish Catalysts Intact, but Watch for 200D MA Rejection
Nordson’s rally is underpinned by strong Q3 results and a $500M buyback program, but technicals suggest caution. The stock’s 5.97% move has pushed it above the 200D MA ($215.38), but the 30D MA ($216.02) and 100D MA ($205.48) remain key support levels. A close below $212.06 (200D range) could trigger a retest of the 52W low ($165.03). Investors should monitor the Industrial Machinery sector leader MMM, which fell -0.57% today, as sector weakness could dampen momentum. Watch for $230 breakout or 200D MA rejection to define the next move.