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

GMS Inc. (NYSE:GMS) shares gapped down before the market opened on Thursday following a dissappointing 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 trading hands.

The company reported $0.92 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.39 by ($0.47). The company had revenue of $1.26 billion during the quarter, compared to analysts’ expectations of $1.29 billion. GMS had a return on equity of 20.67% and a net margin of 3.92%.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on GMS. Robert W. Baird reduced their price objective on GMS from $110.00 to $93.00 and set an “outperform” rating for the company in a research report on Friday. Truist Financial lowered their price target on GMS from $97.00 to $80.00 and set a “hold” rating for the company in a research note on Friday. Loop Capital increased their price objective on GMS from $85.00 to $93.00 and gave the stock a “hold” rating in a report on Monday, November 25th. DA Davidson reduced their target price on shares of GMS from $94.00 to $80.00 and set a “neutral” rating for the company in a research note on Friday. Finally, Barclays dropped their price target on shares of 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 given a buy rating to the company. According to MarketBeat, GMS presently has a consensus rating of “Hold” and a consensus price target of $83.71.

Hedge Funds Weigh In On GMS

Institutional investors have recently modified their holdings of the company. Janney Montgomery Scott LLC grew its holdings in GMS by 1.8% in the 3rd quarter. Janney Montgomery Scott LLC now owns 24,797 shares of the company’s stock valued at $2,246,000 after buying an additional 428 shares during the last quarter. Meritage Portfolio Management boosted its position in shares of GMS by 11.5% in the third quarter. Meritage Portfolio Management now owns 4,747 shares of the company’s stock valued at $430,000 after acquiring an additional 490 shares during the period. State of New Jersey Common Pension Fund D grew its stake in shares of 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 worth $1,884,000 after acquiring an additional 113 shares during the last quarter. GSA Capital Partners LLP acquired a new position in GMS during the 3rd quarter valued at $245,000. Finally, Victory Capital Management Inc. boosted its holdings in 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 purchasing an additional 6,136 shares during the period. Institutional investors own 95.28% of the company’s stock.

GMS Stock Up 1.7 %

The firm’s 50-day simple moving average is $82.32 and its 200-day simple moving average is $88.90. The company has a market capitalization of $2.88 billion, a price-to-earnings ratio of 13.63 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.