What Happened?
Shares of material handling equipment manufacturer Columbus McKinnon (NASDAQ: CMCO) jumped 2% in the afternoon session after the company presented an optimistic strategic overview at the Sidoti Small-Cap Virtual Conference.
During the presentation, leadership reiterated a target to grow annual sales to approximately $1 billion with a 15-16% adjusted EBITDA margin. A central part of the discussion was the pending acquisition of Kito Crosby, which was expected to close by the end of the year. The deal was projected to deliver $70 million in net cost synergies and generate roughly $200 million in free cash flow once completed. Adding to the positive tone, the company noted a record backlog of $360 million, reflecting a 23% increase from the previous year and signaling strong demand.
The shares closed the day at $14.80, down 0.1% from previous close.
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What Is The Market Telling Us
Columbus McKinnon’s shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock dropped 3.1% as concerns about the health of the U.S. economy grew following a significant downward revision of job market data. The Labor Department reported that employers added 911,000 fewer jobs from April 2024 through March than initially estimated. These "benchmark revisions" are issued annually to more accurately account for new and defunct businesses. The report detailed that the leisure and hospitality sector added 176,000 fewer jobs, professional and business services 158,000 fewer, and retailers 126,000 fewer. This weaker-than-expected data has fueled investor anxiety, as it suggests businesses may be becoming more reluctant to hire amid economic uncertainty. The numbers issued are preliminary, with final revisions scheduled for February 2026.
JPMorgan Chase CEO Jamie Dimon added that the U.S. economy is "weakening," though he stopped short of predicting a recession. "Whether it's on the way to recession or just weakening, I don't know," he said. Dimon's remarks are closely watched, given his influence as head of one of the nation's largest banks.
Columbus McKinnon is down 59.9% since the beginning of the year, and at $14.81 per share, it is trading 63.5% below its 52-week high of $40.59 from December 2024. Investors who bought $1,000 worth of Columbus McKinnon’s shares 5 years ago would now be looking at an investment worth $412.99.
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