Columbus McKinnon director Michael Dastoor acquires $192,100 in stock

Published 24/02/2025, 21:42
Columbus McKinnon director Michael Dastoor acquires $192,100 in stock

Michael Dastoor, a director at Columbus McKinnon Corp (NASDAQ:CMCO), recently acquired 10,000 shares of the company’s common stock. The timing is notable as the stock trades near its 52-week low of $18.86, having declined about 49% year-to-date. The purchase, which took place on February 21, 2025, was made at a price of $19.21 per share, amounting to a total value of $192,100. Following this transaction, Dastoor’s direct ownership in the company increased to 20,366 shares. According to InvestingPro analysis, the $527 million market cap company appears undervalued at current levels.

Additionally, the filing reported holdings of 3,214.1329 deferred stock units, which are equivalent to common stock and will be delivered after Dastoor ceases to be a director, under the terms of the company’s plan. InvestingPro subscribers have access to 14 additional key insights about CMCO, including detailed Fair Value analysis and comprehensive financial health metrics.

In other recent news, Columbus McKinnon reported a decline in its third-quarter earnings, with net sales decreasing by 7.9% to $234.1 million compared to the same period last year. The company’s operating margin also fell, with GAAP EPS at $0.14 and Adjusted EPS at $0.56, impacted by foreign exchange and lower short-cycle demand. Additionally, Columbus McKinnon announced a significant acquisition of Kito Crosby for $2.7 billion, which is expected to double the company’s annual revenue and enhance its competitive position in the lifting solutions market. However, the acquisition will be primarily funded through debt, increasing the company’s net leverage ratio to approximately 4.8 times pro forma Adjusted EBITDA.

Following these developments, DA Davidson downgraded Columbus McKinnon’s stock from a Buy to a Neutral rating, citing concerns over increased leverage and deal complexity. S&P Global Ratings placed the company’s ’B+’ credit rating on CreditWatch with negative implications, reflecting potential financial strain from the acquisition. Moody’s (NYSE:MCO) also placed Columbus McKinnon’s ratings under review for a possible downgrade, highlighting high financial leverage and integration risks. In contrast, Moody’s is reviewing Kito Crosby’s ratings for an upgrade, as it becomes part of a higher-rated entity post-acquisition. These recent developments indicate a cautious outlook among analysts and rating agencies regarding Columbus McKinnon’s financial future.

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