Twin Disc President and CEO Sold $656K In Company Stock

John H Batten, President and CEO at Twin Disc (NASDAQ:TWIN), disclosed an insider sell on November 12, according to a recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that Batten executed a sale of 40,000 shares of Twin Disc with a total value of $656,067.

The latest update on Wednesday morning shows Twin Disc shares up by 1.04%, trading at $16.47.

Unveiling the Story Behind Twin Disc

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 September, 2025, the company achieved a revenue growth rate of approximately 9.74%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Interpreting Earnings Metrics:

• Gross Margin: The company maintains a high gross margin of 28.67%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Twin Disc exhibits below-average bottom-line performance with a current EPS of -0.04.

Debt Management: Twin Disc's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.38.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 812.5 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.65 is lower than the industry average, implying a discounted valuation for Twin Disc's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Twin Disc's EV/EBITDA ratio stands at 12.49, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Navigating the Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Breaking Down the Significance of Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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.