Titan International (NYSE:TWI) Stock Rating Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Titan International to “Sell” from “Hold,” while Weiss Ratings maintained a “sell (d-)” rating. MarketBeat lists the stock’s average rating as “Hold” with a $13.00 target price.
• Titan shares fell 5.5% to $4.64, near their 52-week low, amid weak operating results. Third-quarter revenue declined to $335.2 million from $357.3 million and significantly missed estimates, despite adjusted EPS of -$0.03 beating expectations.
• The company expects fourth-quarter revenue of $410 million to $430 million but adjusted EBITDA ranging from breakeven to $7 million. Investors remain concerned about weak agricultural demand and execution or delays surrounding the planned sale of its ITM business.

Titan International (NYSE:TWI - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday, Wall Street Zen reports.

Separately, Weiss Ratings reissued a "sell (d-)" rating on shares of Titan International in a report on Friday, October 16th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, Titan International currently has an average rating of "Hold" and an average target price of $13.00.

Titan International Stock Down 5.5%

Shares of NYSE TWI opened at $4.64 on Friday. The stock has a market capitalization of $299.47 million, a P/E ratio of -2.54 and a beta of 1.43. The company has a 50-day moving average price of $6.98 and a 200-day moving average price of $7.83. Titan International has a 1 year low of $4.61 and a 1 year high of $11.70. The company has a debt-to-equity ratio of 1.16, a current ratio of 2.16 and a quick ratio of 1.15.

Titan International (NYSE:TWI - Get Free Report) last posted its earnings results on Thursday, October 29th. The industrial products company reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.05) by $0.02. Titan International had a negative net margin of 6.76% and a negative return on equity of 2.54%. The company had revenue of $335.18 million during the quarter, compared to the consensus estimate of $448.82 million. On average, equities research analysts forecast that Titan International will post -0.12 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Grace & White Inc. NY grew its stake in Titan International by 16.6% in the 3rd quarter. Grace & White Inc. NY now owns 438,228 shares of the industrial products company's stock valued at $2,971,000 after buying an additional 62,500 shares in the last quarter. SummerHaven Investment Management LLC bought a new stake in Titan International during the 3rd quarter valued at $726,000. Engineers Gate Manager LP purchased a new stake in shares of Titan International during the second quarter worth $225,000. Squarepoint Ops LLC purchased a new stake in shares of Titan International during the second quarter worth $1,211,000. Finally, HighTower Advisors LLC boosted its holdings in shares of Titan International by 18.6% in the second quarter. HighTower Advisors LLC now owns 50,271 shares of the industrial products company's stock worth $388,000 after acquiring an additional 7,892 shares during the period. 80.39% of the stock is currently owned by hedge funds and other institutional investors.

Titan International News Summary

Here are the key news stories impacting Titan International this week:

• Positive Sentiment: Titan reported third-quarter adjusted EPS of -$0.03, exceeding the consensus estimate of -$0.05 by $0.02. Earthmoving and construction sales also increased 5% year over year to $57.4 million. Titan International third-quarter earnings report
• Positive Sentiment: Management projected fourth-quarter revenue of $410 million to $430 million and adjusted EBITDA ranging from breakeven to $7 million. The company continues to target a January 2027 closing for the ITM sale, which could simplify operations and provide proceeds for Titan. Titan fourth-quarter outlook and ITM sale
• Neutral Sentiment: The ITM business was classified as discontinued operations ahead of its proposed sale to USCO S.p.A. This accounting treatment contributed to a reported net loss of $42.5 million, or $0.66 per share, making comparisons with prior periods more difficult. Titan third-quarter financial results
• Negative Sentiment: Third-quarter sales fell to $335.2 million from $357.3 million a year earlier and were well below the roughly $448.8 million analyst estimate. Agricultural sales declined 11.7%, consumer sales fell 3.3%, and adjusted EBITDA from continuing operations dropped to $16.4 million from $20.3 million. Titan third-quarter revenue and loss report
• Negative Sentiment: Analysts and investors remain concerned that the ITM transaction could face closing delays, execution challenges or deliver less financial benefit than expected. The weak agricultural market and fourth-quarter EBITDA guidance near breakeven reinforce concerns about Titan’s near-term profitability. Titan ITM sale risks

Titan International Company Profile

Titan International, Inc NYSE: TWI designs, manufactures and sells wheels, tires and undercarriage systems for off-highway vehicles and equipment. Its products are used in agricultural, construction, earthmoving, mining and other industrial applications, with offerings that include specialized tires, wheels, wheel assemblies, tracks and related components.

The company serves original equipment manufacturers and replacement, or aftermarket, customers. Its products are used on tractors, combines, planting and harvesting equipment, loaders, graders, haulage vehicles and other heavy-duty machinery.

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