Twin Disc CEO John Batten Sells 1,500 Shares Amid Quiet Market, Hinting at Risk‑Averse Strategy

Insider Selling Squeeze? Twin Disc’s CEO Unloads Shares Amid a Quiet Market

The most recent filing shows President and CEO John H. Batten selling 1,500 shares of Twin Disc at $18.00 on February 13, 2026—just one cent above the stock’s close of $17.99 the day before. The trade is part of a string of large sales by Batten over the past year, most notably the 10 000‑share blocks sold on February 11 and the 15 000‑share sale in early September. In total, Batten has shed more than 50 000 shares in 2025‑26, bringing his holdings down to roughly 483 000 shares (about 0.18 % of the outstanding float).

What Does the Sale Mean for Shareholders?

On the surface, the volume of Batten’s transactions is modest relative to the 18‑million‑share float, and the price is close to the current market level. Yet the timing is intriguing. The company just announced a record backlog and is poised for a “strategic growth” push, but the stock is trading near its 52‑week low—an 8.4 % weekly gain but still 5 % below the recent high. An insider who has repeatedly sold in a volatile period may signal that he is hedging personal risk or that he does not fully believe the near‑term upside will materialize.

For investors, the key takeaway is that the CEO’s outflows are not necessarily a red flag but a reminder that the stock’s upside is already capped by a price‑to‑earnings ratio of 12.16 and a close proximity to its 52‑week high. If the backlog expansion translates into earnings growth, the stock could recover a few points, but any misstep in execution could trigger further sales and a decline.

Batten’s Trading Pattern: A Risk‑Averse, Opportunistic Leader

Looking back, Batten’s history shows a blend of strategic selling and periodic buying. He has bought a substantial block of 120 000 shares in August 2025 at $9.02—an aggressive position that suggests confidence in the company’s long‑term prospects. Since then, he has sold in large blocks, often at prices 20‑30 % above the 12‑month low, indicating a preference for locking in gains when the market is favorable. The most recent block of 10 000 shares at $18.58 on February 11, 2026, was executed at a price that was 8 % above the 52‑week low but still below the recent high, hinting at a “sell‑while‑still‑in‑a‑good‑range” approach.

His pattern is consistent with many CEOs who aim to balance personal liquidity needs with the desire to remain a significant shareholder. The fact that he has not reduced his stake to a negligible level suggests he believes in Twin Disc’s long‑term trajectory, even if his recent sales hint at short‑term risk mitigation.

Market Reaction and Broader Insider Activity

Beyond Batten, the company saw a handful of other insider sales in February 2026, including CFO Jeffrey Knutson’s 4 k share sale on February 10 and a series of sales by senior financial officers in November 2025. These outflows are small relative to the overall float but indicate a broader trend of senior executives taking profits as the company’s backlog and earnings outlook improve. In contrast, the board has not been active in buying, which could suggest that the leadership team is not positioning for aggressive upside.

Bottom Line for Investors

• Current Price vs. Outlook: Twin Disc sits near its 52‑week high with a modest P/E, leaving limited upside if the backlog conversion into earnings stalls.
• CEO Activity: Batten’s recent sales are part of a larger pattern of hedging personal risk, not a wholesale loss of confidence.
• Risk Considerations: The market remains sensitive to operational execution; a hiccup could trigger additional insider sales and a sharper decline.

For those weighing a position in Twin Disc, the CEO’s activity signals that the stock may already be priced for a near‑term upside. A cautious approach—buying on pullbacks or in a dollar‑cost‑averaging fashion—could mitigate the risk of a short‑term correction while still allowing exposure to the company’s long‑term growth prospects.