Tennant (NYSE:TNC) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded Tennant to “strong sell” from “strong buy,” while the broader analyst consensus remains “hold” with a $91 price target.
• Tennant’s latest quarterly results missed expectations: EPS was $0.83 versus the $1.33 consensus, and revenue was $324 million versus $329.6 million expected. Earnings also declined year over year despite modest revenue growth.
• Analysts further reduced Tennant’s 2026 and 2027 earnings forecasts, signaling expectations that performance pressures may persist; the stock opened at $66.63, well below its 52-week high of $91.93.

Tennant (NYSE:TNC - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "strong sell" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other research firms have also recently weighed in on TNC. Weiss Ratings raised shares of Tennant from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, June 5th. Wall Street Zen cut shares of Tennant from a "buy" rating to a "hold" rating in a research note on Saturday. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $91.00.

Tennant Stock Performance

Shares of NYSE TNC opened at $66.63 on Monday. The firm has a market capitalization of $1.14 billion, a price-to-earnings ratio of 65.33, a PEG ratio of 2.57 and a beta of 1.13. Tennant has a one year low of $60.17 and a one year high of $91.93. The business has a fifty day simple moving average of $85.64 and a 200 day simple moving average of $79.35. The company has a current ratio of 2.04, a quick ratio of 1.37 and a debt-to-equity ratio of 0.67.

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

Tennant announced that its Board of Directors has approved a stock buyback 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 buy up to 11.1% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Institutional Investors Weigh In On Tennant

Hedge funds have recently made changes to their positions in the company. Royal Bank of Canada boosted its position in Tennant by 23.0% in the first quarter. Royal Bank of Canada now owns 4,563 shares of the industrial products company's stock valued at $364,000 after buying an additional 854 shares in the last quarter. AQR Capital Management LLC increased its holdings in shares of Tennant by 68.8% during the first quarter. AQR Capital Management LLC now owns 49,724 shares of the industrial products company's stock worth $3,966,000 after buying an additional 20,275 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Tennant by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 11,271 shares of the industrial products company's stock worth $899,000 after buying an additional 491 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Tennant by 17.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 56,214 shares of the industrial products company's stock valued at $4,483,000 after acquiring an additional 8,421 shares during the last quarter. Finally, Jane Street Group LLC raised its stake in shares of Tennant by 39.1% in the first quarter. Jane Street Group LLC now owns 38,911 shares of the industrial products company's stock valued at $3,103,000 after acquiring an additional 10,946 shares during the last quarter. Institutional investors and hedge funds own 93.33% of the company's stock.

Key Stories Impacting Tennant

Here are the key news stories impacting Tennant this week:

• Negative Sentiment: Sidoti cut its Tennant earnings estimates across multiple periods: Q3 2026 EPS to $1.10 from $1.56, Q4 2026 EPS to $1.45 from $1.80, and FY2026 EPS to $3.96 from $5.12. The FY2026 estimate is also below the broader consensus of $4.13. Sidoti Has Negative Estimate for Tennant Q2 Earnings
• Negative Sentiment: The analyst also lowered forward forecasts, including Q1 2027 EPS to $0.99 from $1.36 and FY2027 EPS to $5.82 from $6.60. These cuts suggest that the pressure is viewed as extending beyond the current fiscal year. Why Tennant Company’s Stock Is Down
• Negative Sentiment: The estimate reductions follow Tennant’s latest quarterly results, which missed expectations: adjusted earnings were $0.83 per share versus a $1.33 consensus estimate, while revenue of $324.0 million was below the $329.6 million forecast. Earnings also declined from $1.49 per share a year earlier, despite modest revenue growth.

Tennant Company Profile

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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