GMS (NYSE:GMS) Shares Gap Down Following Weak Earnings

GMS Inc. (NYSE:GMS) shares gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $89.89, but opened at $83.10. GMS shares last traded at $81.41, with a volume of 172,372 shares.

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

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the company. Barclays lowered their target price on GMS from $93.00 to $81.00 and set an “equal weight” rating for the company in a research note on Friday. Loop Capital lowered their price objective on GMS from $100.00 to $85.00 and set a “hold” rating for the company in a research report on Friday. Truist Financial lowered their price objective on GMS from $105.00 to $95.00 and set a “hold” rating for the company in a research report on Friday. Royal Bank of Canada lowered their price objective on GMS from $92.00 to $85.00 and set a “sector perform” rating for the company in a research report on Friday. Finally, StockNews.com raised GMS from a “buy” rating to a “strong-buy” rating in a research report on Tuesday. Four analysts have rated the stock with a hold rating, four have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, GMS has a consensus rating of “Moderate Buy” and a consensus price target of $88.88.

Insider Buying and Selling at GMS

In other news, SVP Craig D. Apolinsky sold 20,000 shares of the stock in a transaction that occurred on Wednesday, March 27th. The stock was sold at an average price of $96.57, for a total transaction of $1,931,400.00. Following the completion of the transaction, the senior vice president now directly owns 10,360 shares of the company’s stock, valued at approximately $1,000,465.20. The sale was disclosed in a document filed with the SEC, which is accessible through this link. 1.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On GMS

A number of large investors have recently modified their holdings of GMS. Blue Trust Inc. raised its stake in shares of GMS by 131.1% during the 4th quarter. Blue Trust Inc. now owns 372 shares of the company’s stock worth $31,000 after buying an additional 211 shares in the last quarter. GAMMA Investing LLC purchased a new position in GMS in the 4th quarter valued at approximately $32,000. Hexagon Capital Partners LLC increased its stake in GMS by 233.3% in the 4th quarter. Hexagon Capital Partners LLC now owns 430 shares of the company’s stock valued at $35,000 after purchasing an additional 301 shares in the last quarter. EntryPoint Capital LLC purchased a new position in GMS in the 1st quarter valued at approximately $77,000. Finally, LRI Investments LLC purchased a new position in GMS in the 1st quarter valued at approximately $127,000. 95.28% of the stock is owned by hedge funds and other institutional investors.

GMS Stock Down 3.1 %

The stock has a market capitalization of $3.26 billion, a PE ratio of 11.46 and a beta of 1.72. The firm has a 50 day moving average of $92.35 and a two-hundred day moving average of $88.68. The company has a current ratio of 2.40, a quick ratio of 1.47 and a debt-to-equity ratio of 0.69.

GMS Company Profile

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.