Tenneco Inc. (NYSE: TEN) Seen Running Too Hot, Let’s Look At This More Closely


Icahn Associates Holding LLC recently announced the acquisition of new stake in Tenneco Inc. (NYSE:TEN). The institutional investor has increased its shareholding in the Consumer Cyclical company by 61.67% to 9.14 million shares with purchase of 3.49 million shares. This fresh investment now brings its stake to 14.99% valued currently at $69.07 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.11 million to 5.01 million shares. And Charles Schwab Investment Managem. has lifted its position by 26.52% or 0.34 million shares – to 1.63 million shares.

With over 0.71 million Tenneco Inc. (TEN) shares trading Tuesday and a closing price of $7.64 on the day, the dollar volume was approximately $5.42 million. The shares have shown a positive weekly performance of 3.24% and its price on 07/21/20 gained nearly 0.53%. Currently, there are 81.17M common shares owned by the public and among those 59.58M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 6 analysts who have offered their price forecasts for TEN have a consensus price objective of $6.00. The analysts have set the share’s price value over the next 12 months at a high of $8.00 and a low of $2.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Tenneco Inc. stock is 3.20 for the next 12 months. The average price target is -38.91% below its last price level and a downside to the estimated low will see the stock lose -282.0% over that period. But an upside of 4.5% will see the stock hit the forecast high price target while mean target price for the stock is $7.00.

Insiders at the company have transacted a total of 63 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 40 of these insider trades were purchases, accounting for 588,068 shares. Insider sales of the common stock occurred on 23 occasions, with total insider shares sold totaling 56,361 shares.

The top 3 mutual fund holders in Tenneco Inc. are Undiscovered Managers Behavioral, Vanguard Total Stock Market Index, and Delaware Small Cap Core Fund. Undiscovered Managers Behavioral owns 1.6 million shares of the company’s stock, all valued at over $12.07 million. The company sold 5700.0 shares recently to bring their total holdings to about 2.62% of the shares outstanding. Vanguard Total Stock Market Index sold 30671.0 shares to see its total holdings shrink to 1.46 million shares valued at over $11.07 million and representing 2.40% of the shares outstanding. Delaware Small Cap Core Fund bought 0.62 million shares to bring its total holdings to over 1.41 million shares at a value of $10.68 million. Delaware Small Cap Core Fund now owns shares totaling to 2.32% of the shares outstanding.

Shares of Tenneco Inc. (NYSE: TEN) opened at $7.72, up $0.12 from a prior closing price of $7.60. However, the script later closed the day at $7.64, up 0.53%. The company’s stock has a 5-day price change of 3.24% and 109.89% over the past three months. TEN shares are trading -41.68% year to date (YTD), with the 12-month market performance down to -14.73% lower. It has a 12-month low price of $2.21 and touched a high of $16.29 over the same period. Currently, 0.71 million shares have been traded, compared to an average intraday trading volume of 1.78 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 3.35%, 6.03%, and -15.00% respectively.

Institutional ownership of Tenneco Inc. (NYSE: TEN) shares accounts for 75.50% of the company’s 81.17M shares outstanding. Mutual fund holders own 31.14%, while other institutional holders and individual stakeholders account for 41.54% and 13.65% respectively.

It has a market capitalization of $632.90M and a beta (3y monthly) value of 2.88. The earnings-per-share (ttm) stands at -$13.02. Price movements for the stock have been influenced by the stock’s volatility, which stands at 8.46% over the week and 8.08% over the month.

Analysts forecast that Tenneco Inc. (TEN) will achieve an EPS of -$3.66 for the current quarter, $0.36 for the next quarter and $1.07 for 2021. The lowest estimate earnings-per-share for the quarter is -$4.24 while analysts give the company a high EPS estimate of -$3.4. Comparatively, EPS for the current quarter was $1.2 a year ago. Earnings per share for the fiscal year are expected to decrease by -467.50%, and 128.80% over the next financial year. EPS should grow at an annualized rate of 4.42% over the next five years, compared to -25.70% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 6 brokerage firm advisors rate Tenneco Inc. (TEN) as a “Hold” at a consensus score of 3.20. Specifically, 0 Wall Street analysts polled rate the stock as a buy, while 4 of the 6 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the TEN, a number of firms have released research notes about the stock. JP Morgan stated their Neutral rating for the stock in a research note on April 02, 2020, with the firm’s price target at $5. Morgan Stanley coverage for the Tenneco Inc. (TEN) stock in a research note released on March 30, 2020 offered a Underweight rating with a price target of $2. Morgan Stanley was of a view on August 14, 2019 that the stock is Equal-Weight, while Morgan Stanley gave the stock Underweight rating on November 14, 2018, issuing a price target of. Wolfe Research on their part issued Peer Perform rating on October 02, 2018.


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