GMS (NYSE:GMS) Shares Gap Down After Earnings Miss

GMS Inc. (NYSE:GMS) shares gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $78.81, but opened at $70.65. GMS shares last traded at $68.96, with a volume of 170,653 shares.

The company reported $0.92 EPS for the quarter, missing the consensus estimate of $1.39 by ($0.47). GMS had a return on equity of 20.67% and a net margin of 3.92%.

Analysts Set New Price Targets

A number of brokerages have weighed in on GMS. Loop Capital lifted their price target on shares of GMS from $85.00 to $93.00 and gave the company a “hold” rating in a research report on Monday, November 25th. Royal Bank of Canada reiterated a “sector perform” rating and set a $86.00 price objective (up previously from $78.00) on shares of GMS in a research note on Friday, December 6th. Truist Financial boosted their target price on shares of GMS from $90.00 to $97.00 and gave the company a “hold” rating in a research note on Monday, December 9th. DA Davidson decreased their target price on shares of GMS from $97.00 to $94.00 and set a “neutral” rating for the company in a research report on Friday, December 6th. Finally, Barclays cut their price target on shares of GMS from $93.00 to $80.00 and set an “equal weight” rating for the company in a report on Thursday, January 16th. Six analysts have rated the stock with a hold rating and two have given a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $93.57.

Institutional Trading of GMS

A number of hedge funds and other institutional investors have recently made changes to their positions in GMS. Janney Montgomery Scott LLC grew its stake in shares of GMS by 1.8% during the third quarter. Janney Montgomery Scott LLC now owns 24,797 shares of the company’s stock worth $2,246,000 after purchasing an additional 428 shares during the period. Meritage Portfolio Management grew its position in shares of GMS by 11.5% during the 3rd quarter. Meritage Portfolio Management now owns 4,747 shares of the company’s stock worth $430,000 after buying an additional 490 shares during the period. State of New Jersey Common Pension Fund D grew its position in shares of GMS by 0.5% during the 3rd quarter. State of New Jersey Common Pension Fund D now owns 20,805 shares of the company’s stock worth $1,884,000 after buying an additional 113 shares during the period. GSA Capital Partners LLP bought a new stake in shares of GMS in the 3rd quarter valued at about $245,000. Finally, Victory Capital Management Inc. raised its position in shares of GMS by 6.4% in the 3rd quarter. Victory Capital Management Inc. now owns 101,541 shares of the company’s stock valued at $9,197,000 after acquiring an additional 6,136 shares during the period. 95.28% of the stock is currently owned by institutional investors and hedge funds.

GMS Stock Down 11.3 %

The firm has a market cap of $2.71 billion, a P/E ratio of 12.73 and a beta of 1.73. The firm’s 50 day moving average is $82.80 and its two-hundred day moving average is $89.13. The company has a current ratio of 2.23, a quick ratio of 1.44 and a debt-to-equity ratio of 0.97.

About GMS

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.