Custom Truck One Source (NYSE:CTOS) Shares Gap Up After Strong Earnings

Key Points

• Shares gapped up after the company reported better-than-expected results—EPS of ($0.02) vs. ($0.05) expected and revenue of $461.6M (up 9.3% YoY), sending the stock from a $8.78 close to a $9.25 open.
• Analyst sentiment is mixed: four Buys, one Hold and two Sells yield a consensus “Hold” rating with a $8.00 price target, while individual targets range from $6.00 to $11.00.
• Institutional ownership is very high (about 90%), with several funds substantially increasing stakes during the latest quarter, and the company has a $2.03B market cap with negative trailing P/E and leverage (debt/equity ~2.0).

Shares of Custom Truck One Source, Inc. (NYSE:CTOS - Get Free Report) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $8.78, but opened at $9.25. Custom Truck One Source shares last traded at $9.0030, with a volume of 251,877 shares traded.

The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.05) by $0.03. The firm had revenue of $461.62 million for the quarter, compared to analysts' expectations of $448.27 million. Custom Truck One Source had a negative return on equity of 3.88% and a negative net margin of 1.60%.The business's revenue was up 9.3% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.08) earnings per share.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. DA Davidson reaffirmed a "buy" rating and issued a $8.50 price target on shares of Custom Truck One Source in a research note on Wednesday, March 11th. Cantor Fitzgerald assumed coverage on Custom Truck One Source in a research note on Tuesday, April 21st. They issued an "overweight" rating and a $11.00 price target on the stock. JPMorgan Chase & Co. reduced their price target on Custom Truck One Source from $6.50 to $6.00 and set an "underweight" rating on the stock in a research note on Wednesday, March 11th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Custom Truck One Source in a research note on Monday, April 20th. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Custom Truck One Source presently has a consensus rating of "Hold" and a consensus price target of $8.00.

Institutional Investors Weigh In On Custom Truck One Source

A number of institutional investors have recently modified their holdings of CTOS. Canvas Wealth Advisors LLC grew its stake in shares of Custom Truck One Source by 48.5% in the fourth quarter. Canvas Wealth Advisors LLC now owns 7,050,221 shares of the company's stock worth $40,609,000 after acquiring an additional 2,303,504 shares during the last quarter. M&T Bank Corp grew its stake in shares of Custom Truck One Source by 3,477.5% in the fourth quarter. M&T Bank Corp now owns 938,098 shares of the company's stock worth $5,403,000 after acquiring an additional 911,876 shares during the last quarter. First Trust Advisors LP grew its stake in shares of Custom Truck One Source by 221.9% in the fourth quarter. First Trust Advisors LP now owns 1,222,875 shares of the company's stock worth $7,044,000 after acquiring an additional 842,964 shares during the last quarter. Alyeska Investment Group L.P. grew its stake in shares of Custom Truck One Source by 42.9% in the fourth quarter. Alyeska Investment Group L.P. now owns 2,500,229 shares of the company's stock worth $14,401,000 after acquiring an additional 750,000 shares during the last quarter. Finally, Portolan Capital Management LLC purchased a new stake in shares of Custom Truck One Source in the third quarter worth $4,167,000. 90.07% of the stock is owned by hedge funds and other institutional investors.

Custom Truck One Source Stock Performance

The stock has a market capitalization of $2.03 billion, a PE ratio of -59.59 and a beta of 1.12. The business has a 50 day moving average price of $6.99 and a 200 day moving average price of $6.48. The company has a debt-to-equity ratio of 2.00, a current ratio of 1.33 and a quick ratio of 0.26.

About Custom Truck One Source

Custom Truck One Source, Inc NYSE: CTOS is a North American provider of specialty rental equipment, parts and services. The company's fleet encompasses a wide range of assets, including cranes, aerial work platforms, trench safety and shoring equipment, fluid management solutions, generators and other industrial machinery. Customers rely on Custom Truck One Source to support projects in construction, energy, telecommunications, industrial manufacturing, municipalities and large-scale events.

Headquartered in Plano, Texas, Custom Truck One Source has expanded through a combination of organic growth and strategic acquisitions to establish a network of more than 140 branch locations across the United States and Canada.

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