GMS (NYSE:GMS) Stock Price Down 4.5% on Disappointing Earnings

GMS Inc. (NYSE:GMSGet Free Report)’s share price fell 4.5% on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $80.37 and last traded at $80.62. 285,857 shares changed hands during trading, a decline of 18% from the average session volume of 347,501 shares. The stock had previously closed at $84.40.

The company reported $1.93 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.04 by ($0.11). The company had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.41 billion. GMS had a return on equity of 25.65% and a net margin of 5.48%. GMS’s revenue for the quarter was up 8.4% compared to the same quarter last year. During the same period last year, the company earned $2.11 EPS.

Analyst Ratings Changes

A number of research firms have recently issued reports on GMS. Royal Bank of Canada cut their price objective on shares of GMS from $92.00 to $85.00 and set a “sector perform” rating on the stock in a research report on Friday. Robert W. Baird cut their price objective on shares of GMS from $112.00 to $100.00 and set an “outperform” rating on the stock in a research report on Friday. StockNews.com raised shares of GMS from a “buy” rating to a “strong-buy” rating in a research report on Tuesday. Barclays dropped their price target on shares of GMS from $93.00 to $81.00 and set an “equal weight” rating on the stock in a research report on Friday. Finally, Loop Capital dropped their price target on shares of GMS from $100.00 to $85.00 and set a “hold” rating on the stock in a research report on Friday. Four investment analysts have rated the stock with a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $88.88.

Check Out Our Latest Analysis on GMS

Insider Buying and Selling

In related news, SVP Craig D. Apolinsky sold 20,000 shares of GMS stock in a transaction on Wednesday, March 27th. The shares were sold at an average price of $96.57, for a total value of $1,931,400.00. Following the transaction, the senior vice president now owns 10,360 shares in the company, valued at approximately $1,000,465.20. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 1.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On GMS

A number of hedge funds have recently modified their holdings of GMS. Blue Trust Inc. increased its position in shares of GMS by 131.1% during the fourth quarter. Blue Trust Inc. now owns 372 shares of the company’s stock valued at $31,000 after buying an additional 211 shares during the period. GAMMA Investing LLC bought a new stake in GMS during the fourth quarter worth about $32,000. Hexagon Capital Partners LLC boosted its stake in GMS by 233.3% during the fourth quarter. Hexagon Capital Partners LLC now owns 430 shares of the company’s stock worth $35,000 after acquiring an additional 301 shares in the last quarter. EntryPoint Capital LLC bought a new stake in GMS during the first quarter worth about $77,000. Finally, LRI Investments LLC bought a new stake in GMS during the first quarter worth about $127,000. Hedge funds and other institutional investors own 95.28% of the company’s stock.

GMS Price Performance

The company has a debt-to-equity ratio of 0.69, a current ratio of 2.40 and a quick ratio of 1.47. The firm’s 50 day moving average is $92.61 and its 200 day moving average is $88.61. The firm has a market cap of $3.22 billion, a P/E ratio of 11.31 and a beta of 1.72.

About GMS

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GMS Inc distributes wallboard, ceilings, steel framing and complementary construction products in the United States and Canada. The company offers ceilings products, including suspended mineral fibers, soft fibers, and metal ceiling systems primarily used in offices, hotels, hospitals, retail facilities, schools, and various other commercial and institutional buildings.

Further Reading

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