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

GMS Inc. (NYSE:GMS)’s stock price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $91.15, but opened at $80.05. GMS shares last traded at $85.25, with a volume of 106,250 shares.

The company reported $1.93 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.11 by ($0.18). The firm had revenue of $1.45 billion for the quarter, compared to the consensus estimate of $1.48 billion. GMS had a net margin of 5.02% and a return on equity of 24.05%. The company’s revenue for the quarter was up 2.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.40 earnings per share.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Truist Financial lowered their price objective on GMS from $95.00 to $90.00 and set a “hold” rating on the stock in a research report on Friday. Robert W. Baird lowered their price objective on GMS from $112.00 to $100.00 and set an “outperform” rating on the stock in a research report on Friday, June 21st. Loop Capital lowered their price objective on GMS from $100.00 to $85.00 and set a “hold” rating on the stock in a research report on Friday, June 21st. Stephens lowered their price objective on GMS from $112.00 to $95.00 and set an “overweight” rating on the stock in a research report on Monday, July 1st. Finally, DA Davidson lowered their price objective on GMS from $105.00 to $97.00 and set a “buy” rating on the stock in a research report on Tuesday, June 25th. Four research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $89.75.

Insider Buying and Selling

In related news, SVP Craig D. Apolinsky sold 7,900 shares of the business’s stock in a transaction that occurred on Tuesday, July 16th. The stock was sold at an average price of $90.32, for a total value of $713,528.00. Following the transaction, the senior vice president now directly owns 10,671 shares of the company’s stock, valued at approximately $963,804.72. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 1.90% of the stock is owned by insiders.

Institutional Trading of GMS

Several hedge funds have recently modified their holdings of GMS. GAMMA Investing LLC purchased a new stake in shares of GMS during the 4th quarter worth approximately $32,000. Hexagon Capital Partners LLC raised its holdings in shares of GMS by 233.3% during the 4th 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. Victory Capital Management Inc. raised its holdings in shares of GMS by 166.7% during the 4th quarter. Victory Capital Management Inc. now owns 73,348 shares of the company’s stock worth $6,046,000 after acquiring an additional 45,850 shares in the last quarter. Summit Global Investments raised its holdings in shares of GMS by 25.3% during the 4th quarter. Summit Global Investments now owns 19,679 shares of the company’s stock worth $1,622,000 after acquiring an additional 3,977 shares in the last quarter. Finally, Measured Wealth Private Client Group LLC purchased a new stake in shares of GMS during the 4th quarter worth approximately $330,000. 95.28% of the stock is owned by hedge funds and other institutional investors.

GMS Stock Up 2.2 %

The firm has a market capitalization of $3.44 billion, a PE ratio of 12.90 and a beta of 1.62. The company has a fifty day moving average price of $87.90 and a 200-day moving average price of $91.05. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.40 and a current ratio of 2.17.

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.