Primestone Capital LLP Declares Ownership of 5.2% Stake in Tennant (TNC)
Primestone Capital LLP
recently revealed that they own 5.2% of Tennant (NYSE:TNC) in a Schedule 13D disclosure that was filed with the SEC on Wednesday, December 13th. The investor owns 927,972 shares of the stock valued at $57,812,656. The filing is available through Edgar at this link.
provided the following explanation of their ownership:
The Reporting Person acquired the Common Stock to which this Schedule 13D relates because it believes that the Common Stock represents an attractive investment opportunity. The Reporting Person has engaged and will seek to continue to engage in a constructive dialogue with the Issuer’s management and Board of Directors outlining the Reporting Person’s belief that the Issuer should undertake a strategic review process regarding a consolidation transaction with Nilfisk Holding A/S (“Nilfisk”). The Reporting Person believes that such a transaction would create the global industry leader in the professional cleaning equipment industry. In particular, the Reporting Person believes that a consolidation transaction with Nilfisk would generate greater scale, industry leadership and financial synergies and has provided a presentation to the Issuer outlining such beliefs (the “PrimeStone Presentation”) in the form attached hereto as Exhibit 1 and incorporated by reference herein. The PrimeStone Fund is a greater than 5% shareholder of Nilfisk. The Reporting Person has engaged and intends to continue to actively engage in a dialogue with the Issuer and Nilfisk and stands ready to assist the Issuer and Nilfisk in connection with a transaction. The Reporting Person does not have any present plan or proposal which would relate to or result in any of the matters set forth in subparagraphs (a) (j) of Item 4 of Schedule 13D except as set forth herein or such as would occur upon or in connection with completion of, or following, any of the actions discussed herein. The Reporting Person may take positions or make proposals relating to the Issuer and/or Nilfisk with respect to, or with respect to potential changes in, their operations, management, governing documents, composition of their Boards of Directors, ownership, capital or corporate structure, dividend policy, potential acquisitions or sales of businesses or assets, or strategy and plans as a means of enhancing shareholder value, or the Reporting Person may change its intention with respect to any and all matters referred to in Item 4. The Reporting Person intends to review its investment in the Issuer and Nilfisk on a continuing basis and the Reporting Person or its representatives may from time to time in the future express their views to and/or meet with management, the Board of Directors of the Issuer and Nilfisk, other shareholders or third parties, including, potential acquirers, service providers and financing sources, and/or formulate plans or proposals regarding the Issuer, Nilfisk, or their respective securities. The Reporting Person may exchange information with any such persons pursuant to appropriate confidentiality or similar agreements or otherwise. Such plans or proposals may include one or more plans or proposals that relate to or would result in one or more of the changes referred to in this Item 4, or any of the matters set forth in subparagraphs (a) (j) of Item 4 of Schedule 13D.
CUSIP No. 880345103SCHEDULE 13DPage 5 of 7
Depending upon overall market conditions, other investment opportunities available to the Reporting Person, and the availability of securities of the Issuer and Nilfisk at prices that would make the purchase or sale of such securities desirable, the Reporting Person may endeavor (i) to increase or decrease its position in the Issuer and/or Nilfisk through, among other things, the purchase or sale of securities on the open market or in private transactions, on such terms and at such times as the Reporting Person may deem advisable, and/or (ii) to enter into transactions that increase or hedge its economic exposure to the Common Stock and shares of Nilfisk or other securities, and that may or may not affect its beneficial ownership of shares of Common Stock or of the shares of Nilfisk.
Other hedge funds also recently bought and sold shares of the company. Alps Advisors Inc. increased its stake in shares of Tennant by 0.3% during the 2nd quarter. Alps Advisors Inc. now owns 6,855 shares of the industrial products company’s stock worth $506,000 after purchasing an additional 18 shares in the last quarter. The Manufacturers Life Insurance Company increased its stake in shares of Tennant by 0.5% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 13,620 shares of the industrial products company’s stock worth $1,005,000 after purchasing an additional 72 shares in the last quarter. Ameritas Investment Partners Inc. increased its stake in shares of Tennant by 9.0% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 1,548 shares of the industrial products company’s stock worth $114,000 after purchasing an additional 128 shares in the last quarter. Wells Fargo & Company MN increased its stake in shares of Tennant by 0.9% during the 2nd quarter. Wells Fargo & Company MN now owns 16,516 shares of the industrial products company’s stock worth $1,218,000 after purchasing an additional 142 shares in the last quarter. Finally, Texas Permanent School Fund increased its stake in shares of Tennant by 1.5% during the 2nd quarter. Texas Permanent School Fund now owns 13,000 shares of the industrial products company’s stock worth $959,000 after purchasing an additional 189 shares in the last quarter. Institutional investors own 91.61% of the company’s stock.
A number of research analysts have recently weighed in on the stock. Dougherty & Co reissued a “neutral” rating on shares of Tennant in a research note on Sunday, November 12th. Zacks Investment Research raised shares of Tennant from a “strong sell” rating to a “hold” rating in a research note on Wednesday, October 4th. Two investment analysts have rated the stock with a sell rating and three have issued a hold rating to the company. The stock has an average rating of “Hold” and an average target price of $65.00.
Tennant (NYSE TNC) traded up $0.25 during mid-day trading on Wednesday, reaching $62.30. 143,537 shares of the company’s stock traded hands, compared to its average volume of 80,769. The stock has a market cap of $1,130.00, a PE ratio of 30.02, a P/E/G ratio of 3.35 and a beta of 1.03. The company has a debt-to-equity ratio of 1.29, a current ratio of 2.09 and a quick ratio of 1.39. Tennant has a 12-month low of $60.05 and a 12-month high of $76.80.
Tennant (NYSE:TNC) last released its earnings results on Thursday, November 2nd. The industrial products company reported $0.32 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.61 by ($0.29). The firm had revenue of $261.92 million during the quarter, compared to analysts’ expectations of $252.13 million. Tennant had a return on equity of 13.07% and a net margin of 1.32%. The firm’s revenue was up 30.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.64 earnings per share. equities analysts anticipate that Tennant will post 1.56 earnings per share for the current year.
The company also recently announced a quarterly dividend, which will be paid on Friday, December 15th. Shareholders of record on Thursday, November 30th will be paid a $0.21 dividend. The ex-dividend date is Wednesday, November 29th. This represents a $0.84 annualized dividend and a yield of 1.35%. Tennant’s payout ratio is currently 123.53%.
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Tennant Company Profile
Tennant Company is engaged in designing, manufacturing and marketing of cleaning solutions. The Company’s segments are Americas; Europe, Middle East, Africa, and Asia Pacific. The Company offers a range of products, including floor maintenance and outdoor cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, specialty surface coatings and asset management solutions.
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