Wall Street Zen Upgrades Tennant (NYSE:TNC) to Buy

Key Points

• Wall Street Zen upgraded Tennant from “hold” to “buy,” adding to mixed analyst sentiment that still leaves the stock with an overall Hold consensus and a $91 average target price.
• Tennant’s latest quarterly results beat expectations, with EPS of $0.58 versus $0.40 expected and revenue of $297.9 million topping estimates. The company also issued FY2026 EPS guidance of 4.70 to 5.30.
• The board approved a share buyback authorizing repurchases of up to 11.1% of outstanding shares, while recent insider activity was mixed, including a director sale and CEO share purchase.

Tennant (NYSE:TNC - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday.

TNC has been the subject of several other reports. Zacks Research raised shares of Tennant from a "strong sell" rating to a "hold" rating in a research note on Monday, April 27th. Freedom Capital cut shares of Tennant from a "strong-buy" rating to a "hold" rating in a research report on Thursday, February 26th. Roth Mkm reaffirmed a "buy" rating and set a $91.00 price objective (down from $107.00) on shares of Tennant in a research report on Wednesday, February 25th. Finally, Weiss Ratings raised shares of Tennant from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, April 24th. One equities research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $91.00.

Tennant Price Performance

Shares of TNC opened at $86.97 on Friday. The stock has a market capitalization of $1.48 billion, a P/E ratio of 52.39, a P/E/G ratio of 2.42 and a beta of 1.12. Tennant has a twelve month low of $60.17 and a twelve month high of $88.86. The company has a 50 day moving average of $71.21 and a 200-day moving average of $74.82. The company has a quick ratio of 1.37, a current ratio of 2.12 and a debt-to-equity ratio of 0.67.

Tennant (NYSE:TNC - Get Free Report) last issued its quarterly earnings results on Monday, May 4th. The industrial products company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.18. Tennant had a net margin of 2.55% and a return on equity of 14.87%. The company had revenue of $297.90 million during the quarter, compared to analysts' expectations of $289.25 million. During the same period last year, the business earned $1.12 EPS. The business's quarterly revenue was up 2.7% on a year-over-year basis. Tennant has set its FY 2026 guidance at 4.700-5.300 EPS. As a group, equities research analysts forecast that Tennant will post 5.12 EPS for the current fiscal year.

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

Insiders Place Their Bets

In related news, Director Carol S. Eicher sold 3,130 shares of the business's stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $61.98, for a total value of $193,997.40. Following the completion of the transaction, the director owned 28,836 shares of the company's stock, valued at $1,787,255.28. The trade was a 9.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO David W. Huml bought 4,000 shares of the stock in a transaction on Thursday, February 26th. The shares were acquired at an average cost of $64.39 per share, with a total value of $257,560.00. Following the purchase, the chief executive officer owned 67,958 shares of the company's stock, valued at approximately $4,375,815.62. This represents a 6.25% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired 20,163 shares of company stock valued at $1,261,674 over the last 90 days. 3.50% of the stock is owned by company insiders.

Institutional Trading of Tennant

Hedge funds and other institutional investors have recently made changes to their positions in the company. Hantz Financial Services Inc. grew its holdings in shares of 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 purchasing an additional 177 shares during the last quarter. CoreCap Advisors LLC bought a new stake in Tennant in the third quarter valued at approximately $30,000. UMB Bank n.a. increased its position in Tennant by 1,778.6% during the 4th quarter. UMB Bank n.a. now owns 526 shares of the industrial products company's stock valued at $39,000 after purchasing an additional 498 shares during the period. State of Wyoming acquired a new position in Tennant in the second quarter valued at $73,000. Finally, Whittier Trust Co. acquired a new position in Tennant in the third quarter valued at $74,000. 93.33% of the stock is currently owned by institutional investors.

More Tennant News

Here are the key news stories impacting Tennant this week:

• Positive Sentiment: Sidoti lifted its FY2026 EPS estimate for Tennant to $5.12 from $4.81, above the Street’s $4.84 consensus, reinforcing expectations for stronger full-year earnings. Tennant estimate update
• Positive Sentiment: The firm also raised Q2 2026, Q4 2026, Q1 2027, Q2 2027, and FY2027 EPS forecasts, signaling confidence in Tennant’s longer-term earnings trajectory. Tennant estimate update
• Positive Sentiment: Tennant was also added to Zacks’ Rank #1 (Strong Buy) income stocks list, which may improve sentiment among income-focused investors. Zacks Strong Buy income list
• Neutral Sentiment: Recent headlines around Tennant’s ERP implementation issues, a securities-fraud investigation, and a fund sale tied to those issues may cap enthusiasm and keep volatility elevated. ERP investigation headline
• Negative Sentiment: Some analysts also trimmed select later-period estimates, including Q3 2026 and Q4 2027, indicating not every outlook is improving uniformly. Tennant estimate update

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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