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In a challenging year for Twin Disc (NASDAQ:TWIN), Inc., the company’s stock has tumbled to a 52-week low, reaching a price level of $8.44. According to InvestingPro analysis, the stock’s RSI indicates oversold territory, while maintaining a healthy current ratio of 2.11, suggesting strong short-term liquidity. This significant downturn reflects a stark 44.63% decline over the past year, underscoring the headwinds faced by the industrial machinery manufacturer. Investors have watched with concern as the stock struggled to find its footing amidst a landscape of economic uncertainties and sector-specific challenges. The 52-week low serves as a critical marker for Twin Disc, as the company looks to navigate through the current market conditions and strategize a path to recovery. Despite the challenges, InvestingPro analysis suggests the stock is currently trading below its Fair Value, with the company maintaining moderate debt levels and achieving profitability over the last twelve months. Discover more insights and 6 additional ProTips for TWIN with an InvestingPro subscription.
In other recent news, Twin Disc, Inc. announced the acquisition of Kobelt Manufacturing Co. Ltd. for $16.5 million. This strategic move is aimed at expanding Twin Disc’s portfolio and international reach, integrating Kobelt’s expertise in industrial and marine control systems. Kobelt, based in British Columbia, reported revenues of approximately $14 million for the fiscal year ending December 31, 2024. The acquisition is expected to immediately benefit Twin Disc’s earnings according to U.S. GAAP.
John H. Batten, President and CEO of Twin Disc, highlighted the synergistic fit between the two companies, noting Kobelt’s established market presence in 60 countries. Dave Bockhold, CEO of Kobelt, echoed this sentiment, emphasizing the strategic alignment of their product lines and corporate cultures. The acquisition is anticipated to foster growth opportunities by leveraging Twin Disc’s global sales and service network. Additionally, Kobelt’s in-house capabilities promise comprehensive quality control and after-sales services. This transaction underscores Twin Disc’s commitment to enhancing its product offerings and solidifying its position in the marine and industrial sectors.
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