A new SEC filing reveals that Jannet Giesselman, Director at Twin Disc TWIN, made a notable insider purchase on November 4,.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled that Giesselman made a notable purchase of 6,747 shares of Twin Disc, valuing at $79,999.
In the Tuesday's morning session, Twin Disc's shares are currently trading at $11.73, experiencing a up of 0.43%.
Get to Know Twin Disc Better
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: Financial Performance Dissected
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 its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Navigating Financial Profits:
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Gross Margin: The company sets a benchmark with a high gross margin of 29.72%, reflecting superior cost management and profitability compared to its peers.
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Earnings per Share (EPS): With an EPS below industry norms, Twin Disc exhibits below-average bottom-line performance 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.
Assessing Valuation Metrics:
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Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 14.81 suggests caution, as the stock may be overvalued in the eyes of investors.
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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.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Twin Disc's EV/EBITDA ratio, lower than industry averages at 6.91, indicates attractively priced shares.
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
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Why Insider Transactions Are Important
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Essential Transaction Codes Unveiled
When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes 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.
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