GMS (NYSE:GMS) Shares Gap Up After Earnings Beat

GMS Inc. (NYSE:GMS)’s share price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $73.24, but opened at $83.48. GMS shares last traded at $81.78, with a volume of 419,475 shares traded.

The company reported $1.29 EPS for the quarter, beating analysts’ consensus estimates of $1.11 by $0.18. The business had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.30 billion. GMS had a return on equity of 18.77% and a net margin of 2.61%. The business’s revenue for the quarter was down 5.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.93 earnings per share.

Analyst Upgrades and Downgrades

GMS has been the subject of a number of research analyst reports. Loop Capital dropped their price objective on shares of GMS from $93.00 to $80.00 and set a “hold” rating for the company in a research note on Monday, March 10th. Robert W. Baird set a $93.00 price target on shares of GMS in a research report on Tuesday. Royal Bank Of Canada reaffirmed a “sector perform” rating on shares of GMS in a research note on Tuesday. Barclays reissued an “equal weight” rating on shares of GMS in a research note on Tuesday. Finally, UBS Group set a $80.00 target price on GMS in a research report on Friday, March 7th. Six analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $80.50.

Insider Activity

In related news, Director Theron I. Gilliam sold 12,474 shares of the firm’s stock in a transaction dated Tuesday, April 1st. The stock was sold at an average price of $73.46, for a total transaction of $916,340.04. Following the sale, the director now directly owns 31,507 shares in the company, valued at approximately $2,314,504.22. This trade represents a 28.36% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO John C. Turner, Jr. bought 3,650 shares of the company’s stock in a transaction that occurred on Monday, April 7th. The shares were bought at an average price of $70.00 per share, for a total transaction of $255,500.00. Following the completion of the acquisition, the chief executive officer now owns 66,928 shares in the company, valued at approximately $4,684,960. This trade represents a 5.77% increase in their position. The disclosure for this purchase can be found here. Insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On GMS

Hedge funds have recently modified their holdings of the stock. Voya Investment Management LLC increased its holdings in GMS by 34.1% during the 1st quarter. Voya Investment Management LLC now owns 38,192 shares of the company’s stock worth $2,795,000 after purchasing an additional 9,705 shares during the last quarter. Strs Ohio purchased a new stake in GMS during the 1st quarter worth approximately $73,000. Intech Investment Management LLC increased its holdings in GMS by 25.5% during the 1st quarter. Intech Investment Management LLC now owns 36,871 shares of the company’s stock worth $2,698,000 after purchasing an additional 7,497 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in GMS by 13.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 107,464 shares of the company’s stock worth $7,863,000 after purchasing an additional 13,084 shares during the last quarter. Finally, Zimmer Partners LP increased its holdings in GMS by 33.4% during the 1st quarter. Zimmer Partners LP now owns 100,050 shares of the company’s stock worth $7,321,000 after purchasing an additional 25,050 shares during the last quarter. 95.28% of the stock is currently owned by hedge funds and other institutional investors.

GMS Stock Up 10.8%

The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.38 and a current ratio of 2.30. The firm has a fifty day simple moving average of $74.71 and a 200-day simple moving average of $79.32. The company has a market capitalization of $3.11 billion, a PE ratio of 22.47 and a beta of 1.62.

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.