Twin Disc (NASDAQ:TWIN) Stock Breaks Above 200 Day Moving Average - Time to Sell?

Key Points

• Twin Disc shares rose above their 200-day moving average, reaching $24.45 and last trading at $24.35, compared with the 200-day average of $21.84.
• Analyst sentiment is generally positive, with an average rating of “Moderate Buy” and a consensus price target of $30.00; Lake Street Capital initiated coverage with a Buy rating.
• The company reported a strong quarter, posting $0.64 in earnings per share versus a $0.23 estimate and revenue of $114.4 million versus expectations of $100.35 million. Twin Disc also raised its quarterly dividend to $0.05 per share.

Twin Disc, Incorporated (NASDAQ:TWIN - Get Free Report) crossed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $21.84 and traded as high as $24.45. Twin Disc shares last traded at $24.35, with a volume of 73,028 shares trading hands.

Analysts Set New Price Targets

TWIN has been the subject of several recent research reports. Weiss Ratings raised Twin Disc from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, October 8th. Wall Street Zen upgraded Twin Disc from a "buy" rating to a "strong-buy" rating in a research note on Saturday, September 12th. Finally, Lake Street Capital assumed coverage on shares of Twin Disc in a report on Thursday, July 9th. They set a "buy" rating and a $30.00 price objective on the stock. Two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $30.00.

Twin Disc Price Performance

The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.84 and a current ratio of 2.35. The business has a 50 day simple moving average of $25.01 and a two-hundred day simple moving average of $21.84. The firm has a market capitalization of $354.05 million, a P/E ratio of 10.23 and a beta of 0.59.

Twin Disc (NASDAQ:TWIN - Get Free Report) last announced its earnings results on Thursday, August 20th. The industrial products company reported $0.64 earnings per share for the quarter, beating analysts' consensus estimates of $0.23 by $0.41. Twin Disc had a net margin of 9.06% and a return on equity of 6.78%. The business had revenue of $114.40 million for the quarter, compared to the consensus estimate of $100.35 million.

Twin Disc Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th were given a dividend of $0.05 per share. The ex-dividend date was Tuesday, August 18th. This is a positive change from Twin Disc's previous quarterly dividend of $0.04. This represents a $0.20 dividend on an annualized basis and a yield of 0.8%. Twin Disc's dividend payout ratio (DPR) is 8.40%.

Insiders Place Their Bets

In other Twin Disc news, CFO Jeffrey Knutson sold 7,482 shares of Twin Disc stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $24.25, for a total transaction of $181,438.50. Following the completion of the sale, the chief financial officer owned 164,891 shares of the company's stock, valued at $3,998,606.75. The trade was a 4.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders sold a total of 17,686 shares of company stock worth $417,606 in the last quarter. Company insiders own 21.10% of the company's stock.

Hedge Funds Weigh In On Twin Disc

Institutional investors have recently modified their holdings of the company. IFP Advisors Inc lifted its holdings in shares of Twin Disc by 1.5% in the 3rd quarter. IFP Advisors Inc now owns 122,185 shares of the industrial products company's stock worth $3,201,000 after acquiring an additional 1,828 shares during the last quarter. Ellsworth Advisors LLC purchased a new position in Twin Disc during the 3rd quarter valued at about $976,000. Squarepoint Ops LLC bought a new position in shares of Twin Disc during the second quarter valued at approximately $526,000. Empowered Funds LLC bought a new position in Twin Disc in the 2nd quarter worth $666,000. Finally, Bank of America Corp DE bought a new position in Twin Disc in the second quarter worth about $259,000. 65.25% of the stock is currently owned by institutional investors.

Twin Disc Company Profile

Twin Disc, Inc designs, manufactures and sells power transmission and propulsion systems for marine, industrial and specialty vehicle applications. The company's products are used to transfer and control engine power in commercial and recreational boats, workboats, military vessels, construction equipment and other heavy-duty machinery.

Its product portfolio includes marine transmissions, propulsion systems, surface drives, electronic controls, boat-management systems, power take-offs, torque converters and industrial transmissions.

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