Is Twin Disc, Incorporated (TWIN) Going to Burn These Hedge Funds?

Is Twin Disc, Incorporated (NASDAQ:TWIN) a buy, sell, or hold? Prominent investors are getting less optimistic. The number of bullish hedge fund positions stayed the same which is a slightly negative development in our experience

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Consequently, it’s important to take a glance at the latest action encompassing Twin Disc, Incorporated (NASDAQ:TWIN).

What have hedge funds been doing with Twin Disc, Incorporated (NASDAQ:TWIN)?

Heading into 2013, a total of 5 of the hedge funds we track were bullish in this stock, a change of 0% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings meaningfully.

When looking at the hedgies we track, Mario Gabelli’s GAMCO Investors had the biggest position in Twin Disc, Incorporated (NASDAQ:TWIN), worth close to $12.2 million, comprising 0.1% of its total 13F portfolio. On GAMCO Investors’s heels is Gregory Fraser, Rudolph Kluiber, and Timothy Kroch of GRT Capital Partners, with a $1.1 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include John Overdeck and David Siegel’s Two Sigma Advisors, D. E. Shaw’s D E Shaw and Jim Simons’s Renaissance Technologies.

Seeing as Twin Disc, Incorporated (NASDAQ:TWIN) has experienced declining sentiment from hedge fund managers, we can see that there lies a certain “tier” of funds that elected to cut their positions entirely at the end of the year. At the top of the heap, Israel Englander’s Millennium Management dropped the largest position of all the hedgies we key on, comprising an estimated $0.3 million in stock. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What do corporate executives and insiders think about Twin Disc, Incorporated (NASDAQ:TWIN)?

Insider trading activity, especially when it’s bullish, is best served when the primary stock in question has seen transactions within the past six months. Over the last half-year time frame, Twin Disc, Incorporated (NASDAQ:TWIN) has experienced 1 unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Twin Disc, Incorporated (NASDAQ:TWIN). These stocks are Flow International Corporation (NASDAQ:FLOW), Ampco-Pittsburgh Corp. (NYSE:AP), Global Power Equipment Group Inc (NASDAQ:GLPW), Kadant Inc. (NYSE:KAI), and Marine Products Corp. (NYSE:MPX). This group of stocks are in the diversified machinery industry and their market caps resemble TWIN’s market cap.