Disclosed in the latest SEC filing, a significant insider purchase on November 4, involves Juliann Larimer, Board Member at Twin Disc TWIN.

What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Larimer purchased 6,747 shares of Twin Disc, demonstrating confidence in the company’s growth potential. The total value of the transaction stands at $79,999.

As of Tuesday morning, Twin Disc shares are up by 0.43%, currently priced at $11.73.

Discovering Twin Disc: A Closer Look

Twin Disc Inc is a United States-based firm engaged in the manufacture and sale of marine and heavy-duty off-highway power transmission equipment. The company operates its business through two reportable segments: Manufacturing and Distribution. Its product portfolio includes marine transmissions, surface drives, propellers, and boat management systems as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and control systems.

Twin Disc: A Financial Overview

Revenue Growth: Twin Disc’s revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 0.59%. This indicates a substantial increase in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Key Profitability Indicators:

• Gross Margin: Achieving a high gross margin of 29.72%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Twin Disc’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.54.

Debt Management: Twin Disc’s debt-to-equity ratio is below the industry average. With a ratio of 0.26, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 14.81, Twin Disc’s stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.55, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 6.91, Twin Disc’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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The Relevance of Insider Transactions

Considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Navigating the World of Insider Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Twin Disc’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.