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

Custom Truck One Source, Inc. (NYSE:CTOS) shares 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.

Custom Truck One Source News Summary

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

• Positive Sentiment: Custom Truck reported third-quarter adjusted EBITDA and operational performance that management described as a record quarter, supported by continued growth in its rental business. The company raised planned 2026 net rental fleet investment to approximately $210 million–$230 million, signaling confidence in customer demand. Custom Truck targets 2026 adjusted EBITDA and raises rental fleet investment
• Positive Sentiment: Management is targeting full-year 2026 adjusted EBITDA of approximately $447.5 million–$460 million and provided or updated full-year earnings guidance, giving investors greater visibility into expected profitability. Custom Truck provides 2026 earnings guidance
• Positive Sentiment: DA Davidson reaffirmed its “buy” rating with a $13 price target, while Cantor Fitzgerald maintained an “overweight” rating and a $14 target. The targets imply additional upside and reinforce the constructive analyst view of CTOS’s rental and fleet-growth strategy. DA Davidson rating Cantor Fitzgerald rating
• Neutral Sentiment: Third-quarter earnings per share of $0.01 matched consensus estimates, while revenue of approximately $495.2 million increased 2.7% year over year but fell short of the roughly $516.5 million analyst expectation. The results suggest improving profitability, although top-line growth remains a focus for investors. Custom Truck third-quarter earnings results
• Negative Sentiment: Weather-related disruption affected results, and the revenue miss, low net margin and substantial leverage remain risks. Investors will therefore watch whether rental expansion can offset softer equipment sales and support the company’s ambitious EBITDA outlook. Custom Truck Q3 2026 rental surge and weather impact

Wall Street Analyst Weigh In

CTOS has been the subject of a number of recent research reports. DA Davidson reiterated a “buy” rating and issued a $13.00 price target on shares of Custom Truck One Source in a research note on Tuesday. Robert W. Baird increased their price objective on shares of Custom Truck One Source from $10.00 to $12.00 and gave the company a “neutral” rating in a research report on Tuesday, August 4th. Zacks Research lowered shares of Custom Truck One Source from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $14.00 price objective on shares of Custom Truck One Source in a research report on Tuesday. Finally, Oppenheimer boosted their target price on shares of Custom Truck One Source from $11.00 to $13.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 5th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Custom Truck One Source has an average rating of “Hold” and a consensus price target of $12.00.

Custom Truck One Source Trading Up 2.0%

The company has a debt-to-equity ratio of 2.03, a current ratio of 1.34 and a quick ratio of 0.29. The company has a market capitalization of $2.44 billion, a price-to-earnings ratio of 82.50 and a beta of 1.43. The business’s 50 day simple moving average is $9.37 and its 200 day simple moving average is $8.79.

Custom Truck One Source (NYSE:CTOS) last released its earnings results on Monday, October 26th. The company reported $0.01 EPS for the quarter, hitting the consensus estimate of $0.01. The company had revenue of $495.22 million during the quarter, compared to analysts’ expectations of $516.51 million. Custom Truck One Source had a net margin of 1.05% and a return on equity of 2.66%. The business’s revenue was up 2.7% on a year-over-year basis. During the same quarter last year, the business earned ($0.03) EPS. Research analysts anticipate that Custom Truck One Source, Inc. will post 0.13 EPS for the current year.

Institutional Investors Weigh In On Custom Truck One Source

Several hedge funds have recently modified their holdings of the stock. Dimensional Fund Advisors LP lifted its position in 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 in the last quarter. First Trust Advisors LP increased its position in shares of Custom Truck One Source by 6.4% in the first 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 in the last quarter. Arrowstreet Capital Limited Partnership raised its stake in shares of 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 valued at $6,942,000 after acquiring an additional 642,109 shares during the period. Heartland Advisors Inc. raised its stake in shares of 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 period. Finally, Empowered Funds LLC lifted its holdings in shares of Custom Truck One Source by 9.9% during 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 in the last quarter. 90.07% of the stock is owned by institutional investors and hedge funds.

About Custom Truck One Source

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.