WillScot (NASDAQ:WSC) Shares Gap Down on Disappointing Earnings

WillScot Holdings Corporation (NASDAQ:WSC)’s share price gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $29.35, but opened at $23.27. WillScot shares last traded at $24.88, with a volume of 1,130,674 shares trading hands.

The company reported $0.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.36 by ($0.09). The firm had revenue of $589.08 million for the quarter, compared to the consensus estimate of $587.07 million. WillScot had a net margin of 4.66% and a return on equity of 24.87%. The firm’s revenue was down 2.6% on a year-over-year basis. During the same quarter last year, the company earned $0.39 earnings per share.

WillScot Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 17th. Investors of record on Wednesday, September 3rd will be paid a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a yield of 1.1%. The ex-dividend date is Wednesday, September 3rd. WillScot’s payout ratio is currently 311.11%.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on WSC shares. Morgan Stanley boosted their price objective on WillScot from $38.00 to $39.00 and gave the company an “overweight” rating in a research report on Monday, May 12th. William Blair reissued a “market perform” rating on shares of WillScot in a report on Thursday, May 29th. Barclays reduced their price objective on shares of WillScot from $40.00 to $34.00 and set an “equal weight” rating for the company in a report on Friday, April 4th. Finally, DA Davidson dropped their price target on shares of WillScot from $45.00 to $40.00 and set a “buy” rating for the company in a research report on Friday. Five research analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $39.75.

Insiders Place Their Bets

In other WillScot news, CEO Bradley Lee Soultz bought 10,000 shares of the business’s stock in a transaction on Tuesday, May 6th. The shares were bought at an average cost of $26.79 per share, for a total transaction of $267,900.00. Following the transaction, the chief executive officer owned 128,817 shares in the company, valued at approximately $3,451,007.43. This trade represents a 8.42% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Dominick P. Zarcone bought 10,000 shares of WillScot stock in a transaction dated Tuesday, June 17th. The stock was acquired at an average cost of $26.19 per share, for a total transaction of $261,900.00. Following the purchase, the director directly owned 15,384 shares in the company, valued at approximately $402,906.96. The trade was a 185.74% increase in their position. The disclosure for this purchase can be found here. Insiders own 3.10% of the company’s stock.

Institutional Investors Weigh In On WillScot

A number of institutional investors and hedge funds have recently modified their holdings of WSC. GAMMA Investing LLC grew its holdings in WillScot by 273.2% during the 1st quarter. GAMMA Investing LLC now owns 933 shares of the company’s stock worth $26,000 after acquiring an additional 683 shares during the period. State of Wyoming bought a new position in shares of WillScot in the 4th quarter worth $34,000. Golden State Wealth Management LLC boosted its position in shares of WillScot by 428.2% in the 1st quarter. Golden State Wealth Management LLC now owns 1,384 shares of the company’s stock worth $38,000 after purchasing an additional 1,122 shares during the last quarter. CWM LLC grew its stake in shares of WillScot by 89.9% during the first quarter. CWM LLC now owns 1,747 shares of the company’s stock worth $49,000 after purchasing an additional 827 shares during the period. Finally, Fifth Third Bancorp increased its holdings in WillScot by 28.0% in the first quarter. Fifth Third Bancorp now owns 2,358 shares of the company’s stock valued at $66,000 after purchasing an additional 516 shares during the last quarter. 95.81% of the stock is owned by institutional investors.

WillScot Stock Down 13.7%

The company has a debt-to-equity ratio of 3.56, a current ratio of 0.83 and a quick ratio of 0.76. The stock has a market cap of $4.62 billion, a price-to-earnings ratio of 42.22, a price-to-earnings-growth ratio of 1.61 and a beta of 1.20. The firm has a 50 day simple moving average of $28.49 and a two-hundred day simple moving average of $29.87.

About WillScot

WillScot Holdings Corporation provides workspace and portable storage solutions in the United States, Canada, and Mexico. It operates in two segments, Modular Solutions and Storage Solutions. Its modular solutions include panelized and stackable offices, single-wide modular space units, section modulars and redi-plex, classrooms, ground level offices, blast-resistant modules, clearspan structures, and other modular space; and portable storage solutions, such as portable and cold storage containers, as well as trailers.