Tennant (NYSE:TNC) Sets New 12-Month Low Following Weak Earnings

Tennant (NYSE:TNC) reached a new 52-week low on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $70.80 and last traded at $71.95, with a volume of 207922 shares trading hands. The stock had previously closed at $72.89.

The industrial products company reported $1.12 earnings per share for the quarter, missing the consensus estimate of $1.38 by ($0.26). Tennant had a net margin of 6.51% and a return on equity of 19.98%. The business had revenue of $290.00 million for the quarter, compared to analyst estimates of $296.63 million. During the same quarter last year, the firm posted $1.49 earnings per share. Tennant’s revenue was down 6.8% on a year-over-year basis.

Tennant Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 16th. Shareholders of record on Friday, May 30th will be paid a $0.295 dividend. This represents a $1.18 dividend on an annualized basis and a dividend yield of 1.64%. The ex-dividend date of this dividend is Friday, May 30th. Tennant’s dividend payout ratio is presently 26.94%.

Tennant declared that its Board of Directors has authorized a share buyback program on Thursday, February 13th that authorizes the company to repurchase 2,000,000 shares. This repurchase authorization authorizes the industrial products company to repurchase shares of its stock through open market purchases. Shares repurchase programs are usually an indication that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

Separately, StockNews.com cut shares of Tennant from a “strong-buy” rating to a “buy” rating in a report on Thursday, February 27th.

Insiders Place Their Bets

In related news, SVP Barb Balinski sold 1,717 shares of the business’s stock in a transaction that occurred on Friday, February 28th. The stock was sold at an average price of $86.42, for a total value of $148,383.14. Following the completion of the sale, the senior vice president now directly owns 11,829 shares in the company, valued at approximately $1,022,262.18. The trade was a 12.68 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Richard H. Zay sold 7,053 shares of the business’s stock in a transaction that occurred on Monday, February 24th. The shares were sold at an average price of $87.58, for a total transaction of $617,701.74. Following the transaction, the insider now owns 25,770 shares of the company’s stock, valued at approximately $2,256,936.60. This represents a 21.49 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 2.60% of the company’s stock.

Hedge Funds Weigh In On Tennant

Several large investors have recently bought and sold shares of the company. Sterling Capital Management LLC grew its holdings in shares of Tennant by 668.9% during the fourth quarter. Sterling Capital Management LLC now owns 346 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 301 shares during the last quarter. GAMMA Investing LLC grew its holdings in shares of Tennant by 429.0% during the first quarter. GAMMA Investing LLC now owns 492 shares of the industrial products company’s stock worth $39,000 after purchasing an additional 399 shares during the last quarter. Farther Finance Advisors LLC grew its holdings in shares of Tennant by 194.8% during the first quarter. Farther Finance Advisors LLC now owns 619 shares of the industrial products company’s stock worth $50,000 after purchasing an additional 409 shares during the last quarter. SBI Securities Co. Ltd. acquired a new position in shares of Tennant in the fourth quarter worth approximately $59,000. Finally, KBC Group NV lifted its stake in shares of Tennant by 69.5% in the fourth quarter. KBC Group NV now owns 961 shares of the industrial products company’s stock worth $78,000 after acquiring an additional 394 shares during the period. 93.33% of the stock is currently owned by institutional investors.

Tennant Stock Performance

The stock has a 50 day moving average of $78.24 and a 200 day moving average of $83.53. The company has a quick ratio of 1.43, a current ratio of 1.97 and a debt-to-equity ratio of 0.32. The company has a market capitalization of $1.35 billion, a price-to-earnings ratio of 16.43 and a beta of 0.97.

Tennant Company Profile

Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and asset management solutions.