Custom Truck One Source (NYSE:CTOS) Stock Price Breaks Above 50 Day Moving Average – Should You Sell?

Custom Truck One Source, Inc. (NYSE:CTOS) shares crossed above its 50-day moving average during trading on Tuesday. The stock has a 50-day moving average of $9.36 and traded as high as $10.51. Custom Truck One Source shares last traded at $10.4260, with a volume of 2,486,943 shares.

Key Stories Impacting Custom Truck One Source

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

• Positive Sentiment: CTOS reported record third-quarter results, with revenue rising 2.7% year over year to $495.2 million. Rental revenue increased 20.1%, while gross profit rose 12.4% to $113.3 million and operating profit increased 16.7% to $38.1 million. Custom Truck One Source third-quarter results
• Positive Sentiment: Adjusted EBITDA guidance for 2026 was raised to approximately $447.5 million-$460 million. The company also increased its full-year specialty equipment rental revenue outlook, signaling continued demand from infrastructure-related markets. Custom Truck guidance
• Positive Sentiment: Operating cash flow more than doubled from the prior year to $163.5 million, and quarterly EPS of $0.01 improved from a $0.03 loss a year earlier while matching consensus estimates. CTOS earnings estimates
• Positive Sentiment: D.A. Davidson reaffirmed its Buy rating with a $13 price target, while Cantor Fitzgerald maintained its Overweight rating and set a $14 target. Both imply meaningful upside based on the cited share price. D.A. Davidson rating
• Neutral Sentiment: Management plans to invest $210 million-$230 million in the net rental fleet during 2026. This could expand future rental revenue but also increases capital requirements.
• Negative Sentiment: Quarterly revenue of $495.2 million fell short of analyst expectations of roughly $516.5 million-$526.8 million, reportedly reflecting weather-related pressure. The miss initially weighed on the stock despite the earnings improvement. CTOS revenue expectations
• Negative Sentiment: CTOS continues to carry substantial leverage, with total liabilities of about $2.8 billion and a debt-to-equity ratio above 2.0. Planned fleet spending could pressure liquidity if operating growth slows.

Analysts Set New Price Targets

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

Custom Truck One Source Trading Up 15.7%

The stock has a market capitalization of $2.37 billion, a PE ratio of 80.20 and a beta of 1.43. The firm’s fifty day moving average price is $9.36 and its two-hundred day moving average price is $8.77.

Custom Truck One Source (NYSE:CTOS) last posted its earnings results on Monday, October 26th. The company reported $0.01 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.01. The firm had revenue of $495.22 million during the quarter, compared to analyst estimates of $516.51 million. During the same quarter in the prior year, the firm earned ($0.03) earnings per share. The business’s revenue for the quarter was up 2.7% on a year-over-year basis. As a group, sell-side analysts anticipate that Custom Truck One Source, Inc. will post 0.13 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Custom Truck One Source

Hedge funds have recently modified their holdings of the company. Dimensional Fund Advisors LP grew its stake in shares of Custom Truck One Source by 15.3% in 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 in the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in Custom Truck One Source by 154.9% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,056,550 shares of the company’s stock valued at $6,942,000 after acquiring an additional 642,109 shares during the period. Heartland Advisors Inc. grew its holdings in shares of Custom Truck One Source by 42.9% during the first quarter. Heartland Advisors Inc. now owns 1,000,000 shares of the company’s stock valued at $6,570,000 after purchasing an additional 300,000 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Custom Truck One Source during the second quarter valued at approximately $1,842,000. Finally, Tidal Investments LLC acquired a new stake in shares of Custom Truck One Source during the 2nd quarter worth approximately $987,000. 90.07% of the stock is owned by hedge funds and other institutional investors.

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.