Tennant (NYSE:TNC) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Tennant to “Hold” from “Buy,” while broader analyst coverage remains “Moderate Buy” with a consensus price target of $91.
• Tennant’s stock opened at $73.77, down 4.1%, after the company reported quarterly EPS of $0.83—$0.50 below estimates—and revenue of $324 million, slightly below expectations.
• The board authorized a share repurchase program covering up to 11.1% of outstanding shares, signaling management’s view that the stock may be undervalued; institutional investors own 93.33% of the shares.

Tennant (NYSE:TNC - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

A number of other equities analysts also recently issued reports on the stock. Zacks Research raised shares of Tennant from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 26th. Weiss Ratings raised shares of Tennant from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, June 5th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $91.00.

Tennant Stock Down 4.1%

TNC stock opened at $73.77 on Friday. The company has a market cap of $1.26 billion, a price-to-earnings ratio of 72.32, a P/E/G ratio of 2.66 and a beta of 1.13. The company has a debt-to-equity ratio of 0.67, a quick ratio of 1.41 and a current ratio of 2.04. The business's 50-day moving average is $86.35 and its two-hundred day moving average is $79.50. Tennant has a fifty-two week low of $60.17 and a fifty-two week high of $91.93.

Tennant (NYSE:TNC - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The industrial products company reported $0.83 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.33 by ($0.50). Tennant had a net margin of 1.50% and a return on equity of 13.32%. The firm had revenue of $324.00 million for the quarter, compared to the consensus estimate of $329.55 million. During the same quarter in the prior year, the firm earned $1.49 earnings per share. The company's revenue for the quarter was up 1.7% compared to the same quarter last year. Tennant has set its FY 2026 guidance at 3.800-4.450 EPS. As a group, analysts forecast that Tennant will post 4.13 earnings per share for the current year.

Tennant announced that its board has approved a share buyback plan on Monday, May 4th that allows the company to buyback 2,000,000,000,000 outstanding shares. This buyback authorization allows the industrial products company to purchase up to 11.1% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

Hedge Funds Weigh In On Tennant

Several large investors have recently made changes to their positions in TNC. Hantz Financial Services Inc. raised its stake in Tennant by 85.1% during the 4th quarter. Hantz Financial Services Inc. now owns 385 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 177 shares during the period. UMB Bank n.a. boosted its stake 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 worth $39,000 after purchasing an additional 498 shares during the period. State of Wyoming purchased a new stake in Tennant during the 2nd quarter valued at approximately $73,000. BNP Paribas Financial Markets grew its holdings in Tennant by 25.1% during the 2nd quarter. BNP Paribas Financial Markets now owns 1,936 shares of the industrial products company's stock valued at $150,000 after buying an additional 389 shares in the last quarter. Finally, Tower Research Capital LLC TRC grew its holdings in Tennant by 40.8% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,492 shares of the industrial products company's stock valued at $193,000 after buying an additional 722 shares in the last quarter. 93.33% of the stock is currently owned by hedge funds and other 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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