Custom Truck One Source Shares Surge 7.2% Amid Analyst Upgrades

Custom Truck One Source, Inc. (NYSE:CTOS) experienced a notable increase in its stock value, rising by 7.2% during trading on October 31, 2023. The shares reached a high of $5.99 before closing at $5.9950. This uptick came despite a decline in trading volume, with approximately 201,445 shares exchanged, markedly down from the average daily volume of 751,004 shares. The stock had previously settled at $5.59.

Analysts have recently taken a closer look at Custom Truck One Source, contributing to the stock’s upward momentum. Zacks Research upgraded the company from a “strong sell” rating to a “hold” rating on October 30, 2023. Following this, JPMorgan Chase & Co. raised its target price from $5.50 to $6.00, assigning it an “underweight” rating. On October 9, Stifel Nicolaus increased its price target from $7.00 to $8.00 while maintaining a “buy” rating.

Analyst sentiments vary, with two research analysts recommending a buy, three suggesting a hold, and two advising a sell. According to data from MarketBeat, Custom Truck One Source currently holds an average rating of “hold” with a consensus target price of $7.13.

Recent Earnings Report and Future Projections

The company last reported its earnings results on October 27, 2023. Custom Truck One Source posted an earnings per share (EPS) of ($0.03), falling short of the consensus estimate of ($0.02) by ($0.01). Revenue for the quarter reached $482.06 million, which was below the anticipated $492.12 million. Despite these figures, revenue showed a year-on-year increase of 7.8%. The previous year’s EPS for the same period was ($0.07). Looking ahead, analysts forecast that Custom Truck One Source will record an EPS of ($0.21) for the current fiscal year.

Institutional Investment Activity

Recent shifts in institutional holdings reflect growing interest in Custom Truck One Source. Cetera Investment Advisers significantly increased its stake by 118.8% in the first quarter, now owning 58,343 shares valued at approximately $246,000. Additionally, Swiss National Bank raised its position by 15.6%, acquiring 135,700 shares worth around $573,000. Other notable investors include Invesco Ltd., which boosted its holdings by 12.8% and Nuveen LLC, which entered a new position valued at approximately $699,000.

Hedge funds and other institutional investors now collectively own 90.07% of the company’s stock, indicating strong institutional confidence in the firm’s growth potential.

Custom Truck One Source provides specialty equipment rental and sales services to various sectors, including electric utility, telecommunications, forestry, and waste management. The company operates through three segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS).

As the market continues to react to analyst upgrades and earnings reports, stakeholders will be closely monitoring Custom Truck One Source’s performance in the coming months.