Tennant (NYSE:TNC) Reaches New 12-Month High – Should You Buy?

Shares of Tennant Company (NYSE:TNC) hit a new 52-week high on Friday . The company traded as high as $88.86 and last traded at $87.75, with a volume of 28917 shares changing hands. The stock had previously closed at $87.53.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on TNC. Roth Mkm reiterated a “buy” rating and issued a $91.00 target price (down from $107.00) on shares of Tennant in a research note on Wednesday, February 25th. Freedom Capital lowered shares of Tennant from a “strong-buy” rating to a “hold” rating in a report on Thursday, February 26th. Wall Street Zen upgraded shares of Tennant from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Weiss Ratings raised shares of Tennant from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, June 5th. Finally, Zacks Research upgraded Tennant from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 26th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $91.00.

Tennant Stock Up 0.8%

The stock’s 50-day simple moving average is $81.50 and its 200-day simple moving average is $76.30. The company has a current ratio of 2.12, a quick ratio of 1.41 and a debt-to-equity ratio of 0.67. The firm has a market capitalization of $1.50 billion, a P/E ratio of 53.08, a P/E/G ratio of 2.39 and a beta of 1.12.

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

Tennant Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Friday, May 29th will be paid a $0.31 dividend. The ex-dividend date of this dividend is Friday, May 29th. This represents a $1.24 annualized dividend and a yield of 1.4%. Tennant’s payout ratio is presently 74.70%.

Tennant announced that its Board of Directors has initiated a share buyback program on Monday, May 4th that permits the company to buyback 2,000,000,000,000 shares. This buyback authorization permits the industrial products company to buy up to 11.1% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Institutional Trading of Tennant

Several institutional investors have recently modified their holdings of TNC. Gamco Investors INC. ET AL raised its position in shares of Tennant by 40.5% in the first quarter. Gamco Investors INC. ET AL now owns 706,400 shares of the industrial products company’s stock valued at $46,905,000 after purchasing an additional 203,802 shares during the period. Dimensional Fund Advisors LP lifted its position in shares of Tennant by 8.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 634,158 shares of the industrial products company’s stock worth $42,106,000 after buying an additional 49,136 shares in the last quarter. American Century Companies Inc. grew its position in shares of Tennant by 26.6% during the 3rd quarter. American Century Companies Inc. now owns 434,996 shares of the industrial products company’s stock valued at $35,261,000 after purchasing an additional 91,382 shares in the last quarter. Millennium Management LLC grew its position in Tennant by 33.8% in the fourth quarter. Millennium Management LLC now owns 358,452 shares of the industrial products company’s stock worth $26,418,000 after acquiring an additional 90,611 shares in the last quarter. Finally, Vision One Management Partners LP raised its stake in Tennant by 18.1% in the fourth quarter. Vision One Management Partners LP now owns 344,585 shares of the industrial products company’s stock worth $25,396,000 after buying an additional 52,721 shares in the last quarter. Institutional investors and hedge funds own 93.33% of the company’s stock.

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.