Titan International (NYSE:TWI) Shares Gap Down After Earnings Miss

Key Points

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Titan International, Inc. (NYSE:TWI - Get Free Report) shares gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $9.07, but opened at $8.29. Titan International shares last traded at $8.24, with a volume of 215,441 shares traded.

The industrial products company reported ($0.02) EPS for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.01). The company had revenue of $460.83 million during the quarter, compared to analysts' expectations of $483.84 million. Titan International had a negative return on equity of 1.62% and a negative net margin of 1.24%.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on TWI. Wall Street Zen raised Titan International from a "sell" rating to a "hold" rating in a research note on Thursday, May 8th. Noble Financial began coverage on Titan International in a research note on Wednesday, June 4th. They set an "outperform" rating and a $11.00 target price on the stock. Finally, DA Davidson upped their target price on Titan International from $10.00 to $12.00 and gave the company a "buy" rating in a research note on Tuesday, July 22nd.

Insider Buying and Selling

In related news, CAO Anthony Eheli sold 25,000 shares of the stock in a transaction that occurred on Friday, June 20th. The stock was sold at an average price of $9.24, for a total value of $231,000.00. Following the transaction, the chief accounting officer owned 45,276 shares of the company's stock, valued at $418,350.24. This represents a 35.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Richard M. Cashin, Jr. sold 212,398 shares of the stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $10.34, for a total value of $2,196,195.32. Following the completion of the transaction, the director directly owned 176,461 shares in the company, valued at approximately $1,824,606.74. This trade represents a 54.62% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 301,348 shares of company stock worth $3,086,520. Insiders own 25.00% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of TWI. KLP Kapitalforvaltning AS bought a new position in Titan International in the fourth quarter worth approximately $54,000. Geode Capital Management LLC grew its stake in Titan International by 0.5% in the fourth quarter. Geode Capital Management LLC now owns 1,138,329 shares of the industrial products company's stock worth $7,732,000 after purchasing an additional 5,940 shares in the last quarter. Trexquant Investment LP bought a new position in Titan International in the fourth quarter worth approximately $639,000. ExodusPoint Capital Management LP bought a new position in Titan International in the fourth quarter worth approximately $236,000. Finally, Wells Fargo & Company MN grew its stake in Titan International by 29.7% in the fourth quarter. Wells Fargo & Company MN now owns 30,042 shares of the industrial products company's stock worth $204,000 after purchasing an additional 6,878 shares in the last quarter. Institutional investors own 80.39% of the company's stock.

Titan International Stock Performance

The firm has a 50 day moving average of $9.16 and a 200-day moving average of $8.32. The company has a quick ratio of 1.25, a current ratio of 2.35 and a debt-to-equity ratio of 0.98. The company has a market cap of $540.18 million, a P/E ratio of -27.35 and a beta of 2.05.

About Titan International

Titan International, Inc, together with its subsidiaries, manufactures and sells wheels, tires, and undercarriage systems and components for off-highway vehicles in the United States and internationally. The company operates in Agricultural, Earthmoving/Construction, and Consumer segments. It offers wheels, tires, and undercarriage systems and components for various agricultural equipment, including tractors, combines, skidders, plows, planters, and irrigation equipment.