Custom Truck One Source (NYSE:CTOS) Shares Gap Down – Time to Sell?

Custom Truck One Source, Inc. (NYSE:CTOS)’s stock price gapped down before the market opened on Tuesday. The stock had previously closed at $9.01, but opened at $8.26. Custom Truck One Source shares last traded at $9.7040, with a volume of 110,862 shares trading hands.

Custom Truck One Source News Summary

Here are the key news stories impacting Custom Truck One Source this week:

• Positive Sentiment: Management raised its full-year 2026 adjusted EBITDA and specialty equipment rental (SER) revenue guidance, signaling confidence in demand and operating performance. Custom Truck One Source 2026 earnings guidance
• Positive Sentiment: Third-quarter revenue increased 2.7% year over year to $495.2 million, while rental revenue rose 20.1%. Gross profit and operating profit also improved, and the company generated $163.5 million in operating cash flow, more than double the prior-year level. Custom Truck One Source third-quarter results
• Positive Sentiment: Cantor Fitzgerald reaffirmed its “overweight” rating and assigned a $14 price target, implying substantial upside from recent trading levels. Cantor Fitzgerald CTOS rating
• Neutral Sentiment: CTOS reported quarterly earnings of $0.01 per share, matching consensus and improving from a $0.03-per-share loss a year earlier. However, net margin remained low at 1.05%, highlighting limited bottom-line profitability. CTOS matches third-quarter earnings estimates
• Negative Sentiment: Revenue of $495.2 million missed analyst expectations of approximately $516.5 million, with weather-related impacts weighing on results. The company also has substantial liabilities, which may keep investors focused on leverage and cash needs. CTOS third-quarter revenue

Analysts Set New Price Targets

Several analysts have issued reports on CTOS shares. Oppenheimer upped their price target on shares of Custom Truck One Source from $11.00 to $13.00 and gave the company an “outperform” rating in a report on Wednesday, August 5th. Robert W. Baird raised their price objective on shares of Custom Truck One Source from $10.00 to $12.00 and gave the stock a “neutral” rating in a research note on Tuesday, August 4th. Cantor Fitzgerald restated an “overweight” rating and set a $14.00 price objective on shares of Custom Truck One Source in a research report on Tuesday. Zacks Research lowered Custom Truck One Source from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Finally, Weiss Ratings upgraded Custom Truck One Source from a “sell (d-)” rating to a “hold (c)” rating in a report on Tuesday, September 22nd. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $12.00.

Custom Truck One Source Trading Up 12.0%

The business has a 50-day moving average of $9.36 and a 200 day moving average of $8.74. The stock has a market cap of $2.29 billion, a PE ratio of 112.28 and a beta of 1.43. The company has a debt-to-equity ratio of 2.03, a quick ratio of 0.29 and a current ratio of 1.34.

Custom Truck One Source (NYSE:CTOS) last released its earnings results on Monday, October 26th. The company reported $0.01 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.01. Custom Truck One Source had a net margin of 1.05% and a return on equity of 2.66%. The company had revenue of $495.22 million for the quarter, compared to analyst estimates of $516.51 million. During the same period in the prior year, the firm earned ($0.03) EPS. The firm’s quarterly revenue was up 2.7% on a year-over-year basis. Equities research analysts predict that Custom Truck One Source, Inc. will post 0.13 EPS for the current fiscal year.

Hedge Funds Weigh In On Custom Truck One Source

A number of institutional investors have recently modified their holdings of CTOS. Dimensional Fund Advisors LP lifted its stake in shares of Custom Truck One Source by 15.3% during the first quarter. Dimensional Fund Advisors LP now owns 5,602,838 shares of the company’s stock valued at $36,806,000 after buying an additional 741,857 shares during the period. First Trust Advisors LP grew its stake in Custom Truck One Source by 6.4% in the 1st quarter. First Trust Advisors LP now owns 1,301,351 shares of the company’s stock worth $8,550,000 after acquiring an additional 78,476 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in Custom Truck One Source by 154.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,056,550 shares of the company’s stock worth $6,942,000 after acquiring an additional 642,109 shares during the period. Heartland Advisors Inc. raised its holdings in Custom Truck One Source by 42.9% in the 1st quarter. Heartland Advisors Inc. now owns 1,000,000 shares of the company’s stock valued at $6,570,000 after acquiring an additional 300,000 shares during the last quarter. Finally, Empowered Funds LLC raised its holdings in Custom Truck One Source by 9.9% in the 1st quarter. Empowered Funds LLC now owns 810,115 shares of the company’s stock valued at $5,322,000 after acquiring an additional 72,935 shares during the last quarter. Institutional investors and hedge funds own 90.07% of the company’s stock.

Custom Truck One Source Company Profile

Custom Truck One Source, Inc is a specialty equipment provider serving the utility, telecommunications, rail, and related infrastructure industries. The company sells, rents, leases, and services new and used trucks and equipment, including aerial devices, cranes, digger derricks, bucket trucks, service trucks, trailers, and other specialized vehicles.

Through its parts and service operations, Custom Truck One Source provides replacement parts, maintenance, repair, refurbishment, and field support for specialty equipment.