Tennant Company to Issue Quarterly Dividend of $0.31 (NYSE:TNC)

Key Points

• Tennant Company announced a quarterly dividend of $0.31 per share (annualized $1.24) with an ex-dividend/record date of May 29 and payment on June 15, implying a yield of about 1.5%.
• The firm has raised its dividend every year for 53 years and maintains a low payout ratio (~18.8%), with analysts forecasting $6.16 in EPS next year that would keep the expected payout near 20%.
• Recent insider buying—Director James Glerum purchased 8,163 shares and CEO David Huml bought 4,000 shares, with insiders acquiring a total of 20,163 shares (~$1.26M) over the past three months—indicates management confidence.

Tennant Company (NYSE:TNC - Get Free Report) announced a quarterly dividend on Wednesday, April 29th. Shareholders of record on Friday, May 29th will be paid a dividend of 0.31 per share by the industrial products company on Monday, June 15th. This represents a c) dividend on an annualized basis and a yield of 1.5%. The ex-dividend date is Friday, May 29th.

Tennant has raised its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 53 years. Tennant has a payout ratio of 18.8% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Tennant to earn $6.16 per share next year, which means the company should continue to be able to cover its $1.24 annual dividend with an expected future payout ratio of 20.1%.

Tennant Price Performance

TNC stock opened at $81.14 on Thursday. The company's 50-day moving average price is $70.65 and its two-hundred day moving average price is $74.70. The firm has a market cap of $1.46 billion, a P/E ratio of 34.68, a P/E/G ratio of 2.44 and a beta of 0.98. The company has a quick ratio of 1.37, a current ratio of 2.05 and a debt-to-equity ratio of 0.45. Tennant has a 12 month low of $60.17 and a 12 month high of $85.90.

Insider Transactions at Tennant

In other news, Director James T. Jr. Glerum purchased 8,163 shares of the company's stock in a transaction dated Monday, March 2nd. The stock was bought at an average cost of $61.25 per share, for a total transaction of $499,983.75. Following the purchase, the director owned 8,600 shares of the company's stock, valued at approximately $526,750. The trade was a 1,867.96% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO David W. Huml acquired 4,000 shares of the business's stock in a transaction that occurred on Thursday, February 26th. The shares were purchased at an average cost of $64.39 per share, for a total transaction of $257,560.00. Following the acquisition, the chief executive officer owned 67,958 shares in the company, valued at $4,375,815.62. This represents a 6.25% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have acquired 20,163 shares of company stock valued at $1,261,674. Corporate insiders own 3.50% of the company's stock.

Hedge Funds Weigh In On Tennant

Several large investors have recently bought and sold shares of the company. Salomon & Ludwin LLC acquired a new stake in shares of Tennant during the third quarter valued at about $28,000. Hantz Financial Services Inc. grew its holdings in Tennant by 85.1% during the 4th quarter. Hantz Financial Services Inc. now owns 385 shares of the industrial products company's stock worth $28,000 after acquiring an additional 177 shares during the last quarter. CoreCap Advisors LLC acquired a new position in Tennant in the 3rd quarter valued at approximately $30,000. UMB Bank n.a. increased its position in Tennant by 1,778.6% in the 4th quarter. UMB Bank n.a. now owns 526 shares of the industrial products company's stock valued at $39,000 after acquiring an additional 498 shares during the period. Finally, State of Wyoming bought a new position in shares of Tennant during the second quarter valued at $73,000. 93.33% of the stock is currently owned by institutional investors.

About Tennant

Tennant Company is a global provider of solutions that help keep facilities clean, safe and sustainable. The company designs, manufactures and markets a broad range of cleaning machines, chemicals and service programs that address the cleaning needs of customers in diverse industries, including manufacturing, warehousing, food and beverage, healthcare and education. Tennant's product portfolio encompasses both ride-on and walk-behind floor scrubbers and sweepers, carpet extractors, power brushes, pressure washers and autonomous cleaning machines.

Founded in 1870 and headquartered in Minneapolis, Minnesota, Tennant has grown from a regional manufacturer into a multinational organization with operations in more than 70 countries and sales representation in over 100 markets worldwide.

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