Twin Disc, Incorporated (NASDAQ:TWIN) Sees Large Increase in Short Interest

Key Points

• Short interest in Twin Disc surged to 348,028 shares as of June 30, up 387.8% from mid-June, with about 3.1% of shares sold short and a short-interest ratio of 1.2 days.
• The stock traded down to $22.62 in recent trading, near its 52-week high of $24.50, while the company showed a market cap of $326.18 million and a P/E ratio of 12.29.
• Analysts and institutions remain engaged: Lake Street Capital initiated coverage with a buy rating and $30 price target, and institutional ownership stands at 65.25% of shares.

Twin Disc, Incorporated (NASDAQ:TWIN - Get Free Report) was the target of a significant growth in short interest during the month of June. As of June 30th, there was short interest totaling 348,028 shares, a growth of 387.8% from the June 15th total of 71,351 shares. Based on an average trading volume of 285,865 shares, the short-interest ratio is currently 1.2 days. Currently, 3.1% of the company's shares are sold short.

Twin Disc Price Performance

Shares of NASDAQ TWIN traded down $0.48 during mid-day trading on Friday, hitting $22.62. 109,543 shares of the company's stock traded hands, compared to its average volume of 196,233. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.09 and a quick ratio of 0.81. Twin Disc has a 1 year low of $8.03 and a 1 year high of $24.50. The company's 50-day moving average is $19.57 and its two-hundred day moving average is $17.89. The company has a market capitalization of $326.18 million, a P/E ratio of 12.29 and a beta of 0.64.

Twin Disc (NASDAQ:TWIN - Get Free Report) last released its earnings results on Wednesday, May 6th. The industrial products company reported $0.23 earnings per share for the quarter, missing analysts' consensus estimates of $0.25 by ($0.02). The business had revenue of $96.69 million during the quarter, compared to analysts' expectations of $94.70 million. Twin Disc had a return on equity of 2.77% and a net margin of 7.32%.

Twin Disc Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Monday, May 18th were issued a $0.04 dividend. The ex-dividend date of this dividend was Monday, May 18th. This represents a $0.16 dividend on an annualized basis and a dividend yield of 0.7%. Twin Disc's dividend payout ratio is currently 8.70%.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on TWIN shares. Lake Street Capital started coverage on shares of Twin Disc in a report on Thursday. They issued a "buy" rating and a $30.00 target price on the stock. Weiss Ratings raised shares of Twin Disc from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, June 12th. Finally, Wall Street Zen cut shares of Twin Disc from a "strong-buy" rating to a "buy" rating in a research report on Saturday, June 6th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $30.00.

Institutional Investors Weigh In On Twin Disc

A number of large investors have recently bought and sold shares of TWIN. Ritholtz Wealth Management lifted its holdings in Twin Disc by 350.6% during the fourth quarter. Ritholtz Wealth Management now owns 60,464 shares of the industrial products company's stock worth $1,009,000 after acquiring an additional 47,045 shares in the last quarter. Allspring Global Investments Holdings LLC increased its holdings in shares of Twin Disc by 105.1% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 180,119 shares of the industrial products company's stock worth $3,004,000 after acquiring an additional 92,284 shares in the last quarter. Mink Brook Asset Management LLC raised its position in shares of Twin Disc by 385.8% during the third quarter. Mink Brook Asset Management LLC now owns 298,520 shares of the industrial products company's stock worth $4,161,000 after purchasing an additional 237,073 shares during the period. North Star Investment Management Corp. acquired a new stake in shares of Twin Disc during the first quarter worth about $874,000. Finally, Meros Investment Management LP bought a new position in shares of Twin Disc during the 4th quarter valued at about $911,000. Hedge funds and other institutional investors own 65.25% of the company's stock.

Twin Disc Company Profile

Twin Disc, Inc NASDAQ: TWIN is a global designer and manufacturer of power transmission equipment for marine and industrial applications. Headquartered in Racine, Wisconsin, the company develops a range of mechanical and digital solutions that control power delivery in demanding environments. Its portfolio includes marine gears, power take-offs, clutches, brakes, transmissions and controllable pitch propeller systems engineered to withstand heavy loads and corrosive conditions.

In addition to original equipment manufacturing, Twin Disc offers aftermarket parts and services, including maintenance, repair and overhaul support through a network of service centers worldwide.

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