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

GMS Inc. (NYSE:GMS)’s stock price 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 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.39 by ($0.47). GMS had a return on equity of 20.67% and a net margin of 3.92%.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on GMS. Robert W. Baird reduced their price target on shares of GMS from $115.00 to $110.00 and set an “outperform” rating for the company in a research report on Friday, December 6th. DA Davidson lowered their price target on shares of GMS from $97.00 to $94.00 and set a “neutral” rating for the company in a research note on Friday, December 6th. Loop Capital raised their target price on GMS from $85.00 to $93.00 and gave the stock a “hold” rating in a research note on Monday, November 25th. Barclays decreased their price objective on GMS from $93.00 to $80.00 and set an “equal weight” rating for the company in a report on Thursday, January 16th. Finally, Truist Financial raised their price objective 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. Six equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $93.57.

Institutional Investors Weigh In On GMS

A number of institutional investors have recently added to or reduced their stakes in the stock. Janney Montgomery Scott LLC increased its stake in shares of GMS by 1.8% in the 3rd quarter. Janney Montgomery Scott LLC now owns 24,797 shares of the company’s stock worth $2,246,000 after acquiring an additional 428 shares during the last quarter. Meritage Portfolio Management increased its stake in shares of GMS by 11.5% during the third 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 raised its holdings in GMS by 0.5% in the third quarter. State of New Jersey Common Pension Fund D now owns 20,805 shares of the company’s stock valued at $1,884,000 after acquiring an additional 113 shares in the last quarter. GSA Capital Partners LLP purchased a new position in GMS in the third quarter worth approximately $245,000. Finally, Victory Capital Management Inc. grew its holdings in GMS by 6.4% during the 3rd quarter. Victory Capital Management Inc. now owns 101,541 shares of the company’s stock worth $9,197,000 after acquiring an additional 6,136 shares in the last quarter. Institutional investors and hedge funds own 95.28% of the company’s stock.

GMS Stock Performance

The stock’s 50-day simple moving average is $82.80 and its 200 day simple moving average is $89.13. The company has a market capitalization of $2.71 billion, a PE ratio of 12.73 and a beta of 1.73. The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.44 and a current ratio of 2.23.

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.