TNC Should I Buy
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Tennant Co (TNC) is not a good buy for a beginner investor with a long-term focus at this time. The company is facing significant operational and financial challenges, including ERP-related disruptions, declining financial performance, and negative analyst sentiment. While hedge funds are increasing their positions, the lack of positive catalysts and weak financials outweigh this factor.
The MACD is positive at 0.512 but contracting, indicating weakening momentum. RSI is at 75.363, suggesting a neutral trend. Moving averages are converging, showing no clear directional bias. The stock is trading near its pivot level of 79.286, with resistance at 81.605 and support at 76.967. Overall, the technical indicators do not strongly support a buy signal.
Hedge funds have significantly increased their buying activity, with an 8733.45% increase over the last quarter.
ERP-related disruptions have caused significant operational issues, leading to $30 million in lost sales and an additional $20 million in unplanned expenses for
Legal investigations into potential securities fraud related to the ERP implementation.
Negative analyst sentiment, including a downgrade to Hold with a reduced price target of $
Weak financial performance in Q4 2025, with revenue, net income, EPS, and gross margin all declining significantly year-over-year.
In Q4 2025, Tennant's revenue dropped by 11.34% YoY to $291.6 million. Net income fell to -$4.4 million, a 166.67% decline YoY. EPS dropped to -$0.24, down 168.57% YoY. Gross margin also declined to 34.57%, down 16.46% YoY. These metrics indicate significant financial struggles.
Freedom Capital downgraded Tennant to Hold from Buy, with a reduced price target of $67 (down from $93). The downgrade is attributed to weak Q4 performance, ongoing operational disruptions, and tariff inflation, which are expected to persist into 2026.
