Tennant (NYSE:TNC) Director Buys 1,500 Shares

Key Points

• Director Timothy Morse bought 1,500 Tennant shares at $68.18 each, investing $102,270 and increasing his direct ownership by 16.46% to 10,614 shares.
• Tennant’s stock traded at $67.92 after a disappointing quarterly report: adjusted earnings of $0.83 per share missed estimates by $0.50, while revenue declined short of expectations. Analysts’ consensus rating is Hold, with an average price target of $91.
• The company authorized a repurchase program covering up to 11.1% of outstanding shares and declared a quarterly dividend of $0.31 per share, equivalent to a 1.8% yield.

Tennant Company (NYSE:TNC - Get Free Report) Director Timothy Morse purchased 1,500 shares of the company's stock in a transaction that occurred on Wednesday, August 12th. The stock was bought at an average price of $68.18 per share, for a total transaction of $102,270.00. Following the transaction, the director directly owned 10,614 shares in the company, valued at $723,662.52. This trade represents a 16.46% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Tennant Stock Performance

TNC traded down $1.33 on Thursday, hitting $67.92. 305,090 shares of the company traded hands, compared to its average volume of 222,539. The company has a 50 day moving average of $85.33 and a 200-day moving average of $79.27. The company has a quick ratio of 1.37, a current ratio of 2.04 and a debt-to-equity ratio of 0.67. The stock has a market capitalization of $1.16 billion, a PE ratio of 66.58, a PEG ratio of 2.46 and a beta of 1.13. Tennant Company has a 12-month low of $60.17 and a 12-month high of $91.93.

Tennant (NYSE:TNC - Get Free Report) last announced its earnings results on Wednesday, August 5th. The industrial products company reported $0.83 earnings per share for the quarter, missing the consensus estimate of $1.33 by ($0.50). The company had revenue of $324.00 million during the quarter, compared to analysts' expectations of $329.55 million. Tennant had a net margin of 1.50% and a return on equity of 13.32%. The company's revenue for the quarter was up 1.7% compared to the same quarter last year. During the same quarter last year, the business posted $1.49 earnings per share. Tennant has set its FY 2026 guidance at 3.800-4.450 EPS. Sell-side analysts anticipate that Tennant Company will post 3.85 earnings per share for the current year.

Tennant declared that its board has authorized a share repurchase plan on Monday, May 4th that permits the company to repurchase 2,000,000,000,000 outstanding shares. This repurchase authorization permits the industrial products company to repurchase up to 11.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

Tennant Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Monday, August 31st will be issued a dividend of $0.31 per share. The ex-dividend date of this dividend is Monday, August 31st. This represents a $1.24 annualized dividend and a dividend yield of 1.8%. Tennant's dividend payout ratio (DPR) is currently 121.57%.

Institutional Trading of Tennant

A number of institutional investors have recently modified their holdings of the business. Comerica Bank lifted its stake in shares of Tennant by 1.2% during the 3rd quarter. Comerica Bank now owns 12,290 shares of the industrial products company's stock worth $996,000 after purchasing an additional 144 shares during the period. Daiwa Securities Group Inc. lifted its position in Tennant by 2.5% during the fourth quarter. Daiwa Securities Group Inc. now owns 6,115 shares of the industrial products company's stock worth $451,000 after buying an additional 148 shares during the period. Hantz Financial Services Inc. lifted its position in Tennant by 85.1% during the fourth quarter. Hantz Financial Services Inc. now owns 385 shares of the industrial products company's stock worth $28,000 after buying an additional 177 shares during the period. Swiss National Bank boosted its stake in Tennant by 0.6% in the 3rd quarter. Swiss National Bank now owns 34,300 shares of the industrial products company's stock worth $2,780,000 after buying an additional 200 shares during the last quarter. Finally, State of Tennessee Department of Treasury boosted its stake in Tennant by 3.9% in the 4th quarter. State of Tennessee Department of Treasury now owns 6,559 shares of the industrial products company's stock worth $499,000 after buying an additional 247 shares during the last quarter. 93.33% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of brokerages have commented on TNC. Zacks Research downgraded shares of Tennant from a "strong-buy" rating to a "strong sell" rating in a research report on Monday. Weiss Ratings downgraded shares of Tennant from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday. Finally, Wall Street Zen lowered shares of Tennant from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $91.00.

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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