Twin Disc (NASDAQ:TWIN) Stock Price Breaks Above 200-Day Moving Average - Here's What Happened

Key Points

• Twin Disc shares broke above their 200-day moving average, reaching $29.24 and last trading at $28.72, compared with a 200-day average of $20.85.
• Analyst sentiment remains mixed: the consensus rating is Hold with an average price target of $30, while one analyst upgraded the stock to “strong buy” and another initiated coverage with a “buy” rating.
• The company reported strong quarterly results, with EPS of $0.64 versus a $0.23 estimate and revenue of $114.4 million versus $100.35 million expected. Twin Disc also increased 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 Monday. The stock has a 200-day moving average of $20.85 and traded as high as $29.24. Twin Disc shares last traded at $28.72, with a volume of 89,198 shares.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the company. Wall Street Zen raised Twin Disc from a "buy" rating to a "strong-buy" rating in a research report on Saturday, September 12th. Lake Street Capital assumed coverage on Twin Disc in a research report on Thursday, July 9th. They set a "buy" rating and a $30.00 target price on the stock. Finally, Weiss Ratings cut Twin Disc from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, September 8th. One research analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Twin Disc has a consensus rating of "Hold" and an average price target 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 stock's 50-day moving average is $24.40 and its 200 day moving average is $20.85. The stock has a market capitalization of $417.59 million, a PE ratio of 12.07 and a beta of 0.59.

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

Twin Disc Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 18th were given a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 0.7%. This is an increase from Twin Disc's previous quarterly dividend of $0.04. The ex-dividend date was Tuesday, August 18th. Twin Disc's payout ratio is presently 8.40%.

Insider Buying and Selling at Twin Disc

In other news, CFO Jeffrey Knutson sold 7,482 shares of the business's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $24.25, for a total value of $181,438.50. Following the completion of the sale, the chief financial officer directly owned 164,891 shares of the company's stock, valued at approximately $3,998,606.75. The trade was a 4.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Over the last ninety days, insiders sold 17,686 shares of company stock valued at $417,606. 21.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Legal & General Group Plc acquired a new position in Twin Disc during the second quarter worth approximately $26,000. Global Retirement Partners LLC acquired a new stake in shares of Twin Disc in the second quarter valued at approximately $54,000. Bank of America Corp DE acquired a new stake in shares of Twin Disc in the second quarter valued at approximately $259,000. Deutsche Bank AG purchased a new position in shares of Twin Disc during the second quarter worth approximately $261,000. Finally, Empowered Funds LLC grew its position in shares of Twin Disc by 8.5% during the first quarter. Empowered Funds LLC now owns 26,786 shares of the industrial products company's stock worth $404,000 after acquiring an additional 2,099 shares during the last quarter. Hedge funds and other institutional investors own 65.25% of the company's stock.

Twin Disc Company Profile

Twin Disc, Inc designs, manufactures and sells power transmission and propulsion systems for marine and industrial applications. The company's products include marine transmissions, propulsion systems, controls, surface drives, propellers and related equipment used to transfer power from engines to vessels or machinery.

Its marine offerings serve pleasure craft, commercial vessels and workboats, while its industrial products support applications such as energy, construction, agriculture and other equipment that require power management and transmission solutions.

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