GMS (NYSE:GMS) Shares Gap Down on Disappointing Earnings

Shares of GMS Inc. (NYSE:GMS) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. 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 earnings per share for the quarter, missing analysts’ consensus estimates of $1.39 by ($0.47). GMS had a net margin of 3.92% and a return on equity of 20.67%. The company had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $1.29 billion.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on GMS. Robert W. Baird dropped their price target on shares of GMS from $115.00 to $110.00 and set an “outperform” rating on the stock in a research note on Friday, December 6th. DA Davidson dropped their target price on shares of GMS from $97.00 to $94.00 and set a “neutral” rating on the stock in a research note on Friday, December 6th. Royal Bank of Canada reissued a “sector perform” rating and set a $86.00 price target (up previously from $78.00) on shares of GMS in a research report on Friday, December 6th. Truist Financial boosted their price objective on shares of GMS from $90.00 to $97.00 and gave the stock a “hold” rating in a report on Monday, December 9th. Finally, Barclays cut their target price on GMS from $93.00 to $80.00 and set an “equal weight” rating on the stock in a research note on Thursday, January 16th. Six investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $93.57.

Hedge Funds Weigh In On GMS

A number of institutional investors and hedge funds have recently modified their holdings of GMS. AlphaQuest LLC boosted its position in GMS by 1,710.5% in the fourth quarter. AlphaQuest LLC now owns 344 shares of the company’s stock worth $29,000 after purchasing an additional 325 shares during the last quarter. Canada Pension Plan Investment Board bought a new position in shares of GMS in the 4th quarter worth approximately $34,000. Blue Trust Inc. lifted its stake in shares of GMS by 71.3% in the 4th quarter. Blue Trust Inc. now owns 685 shares of the company’s stock worth $62,000 after purchasing an additional 285 shares during the period. Smartleaf Asset Management LLC boosted its stake in shares of GMS by 246.5% during the 4th quarter. Smartleaf Asset Management LLC now owns 991 shares of the company’s stock worth $84,000 after acquiring an additional 705 shares during the last quarter. Finally, KBC Group NV lifted its position in GMS by 31.9% during the third quarter. KBC Group NV now owns 1,162 shares of the company’s stock valued at $105,000 after purchasing an additional 281 shares in the last quarter. 95.28% of the stock is currently owned by hedge funds and other institutional investors.

GMS Trading Down 7.5 %

The stock has a 50 day moving average of $82.80 and a 200-day moving average of $89.13. The company has a market capitalization of $2.83 billion, a P/E ratio of 13.40 and a beta of 1.73. The company has a current ratio of 2.23, a quick ratio of 1.44 and a debt-to-equity ratio of 0.97.

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.