Barrett Business Services, Inc. (NASDAQ:BBSI) Sees Large Growth in Short Interest

Key Points

• Barrett Business Services experienced a 20.1% increase in short interest in March to 849,756 shares, equal to 3.5% of the stock and a short-interest ratio of 2.3 days.
• The company reported $0.64 EPS for the quarter (meeting estimates) with revenue up 5.3% year-over-year, analysts expect about 2.0 EPS for the fiscal year and the stock trades at a P/E of 14.37.
• Insider activity was mixed: CEO Gary Kramer bought 8,370 shares at $26.89 while EVP James R. Potts sold 1,803 shares, and corporate insiders now own 4.10% of the company.

Barrett Business Services, Inc. (NASDAQ:BBSI - Get Free Report) was the target of a significant growth in short interest in March. As of March 13th, there was short interest totaling 849,756 shares, a growth of 20.1% from the February 26th total of 707,540 shares. Based on an average trading volume of 370,346 shares, the short-interest ratio is currently 2.3 days. Currently, 3.5% of the company's stock are short sold.

Barrett Business Services Stock Performance

BBSI opened at $30.03 on Tuesday. The company has a market capitalization of $756.76 million, a P/E ratio of 14.37, a P/E/G ratio of 1.02 and a beta of 1.03. The stock has a fifty day moving average of $31.97 and a 200-day moving average of $36.68. Barrett Business Services has a fifty-two week low of $25.33 and a fifty-two week high of $49.65.

Barrett Business Services (NASDAQ:BBSI - Get Free Report) last released its quarterly earnings data on Wednesday, February 25th. The business services provider reported $0.64 earnings per share for the quarter, meeting analysts' consensus estimates of $0.64. Barrett Business Services had a net margin of 4.39% and a return on equity of 23.67%. The business had revenue of $2.40 billion during the quarter, compared to analyst estimates of $323.43 million. During the same period in the previous year, the business earned $0.63 EPS. Barrett Business Services's revenue was up 5.3% compared to the same quarter last year. On average, equities research analysts predict that Barrett Business Services will post 2 earnings per share for the current fiscal year.

Barrett Business Services Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 27th. Investors of record on Friday, March 13th were paid a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Friday, March 13th. Barrett Business Services's payout ratio is presently 15.31%.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Zacks Research cut shares of Barrett Business Services from a "hold" rating to a "strong sell" rating in a research note on Friday, February 27th. Barrington Research reduced their price target on Barrett Business Services from $46.00 to $41.00 and set an "outperform" rating for the company in a report on Thursday, February 26th. CJS Securities upgraded Barrett Business Services to a "strong-buy" rating in a research note on Thursday, December 11th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Barrett Business Services in a research report on Monday, December 29th. Finally, Roth Mkm dropped their price target on Barrett Business Services from $54.00 to $42.00 and set a "buy" rating on the stock in a research note on Thursday, February 26th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $41.50.

Insider Activity at Barrett Business Services

In other news, EVP James R. Potts sold 1,803 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $28.68, for a total transaction of $51,710.04. Following the sale, the executive vice president owned 33,837 shares in the company, valued at $970,445.16. This represents a 5.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Gary Kramer acquired 8,370 shares of the business's stock in a transaction dated Friday, March 13th. The stock was bought at an average cost of $26.89 per share, with a total value of $225,069.30. Following the acquisition, the chief executive officer owned 328,801 shares in the company, valued at $8,841,458.89. The trade was a 2.61% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 4.10% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Tripletail Wealth Management LLC purchased a new position in Barrett Business Services during the 3rd quarter valued at about $34,000. Farther Finance Advisors LLC boosted its position in shares of Barrett Business Services by 1,388.3% in the third quarter. Farther Finance Advisors LLC now owns 893 shares of the business services provider's stock valued at $40,000 after acquiring an additional 833 shares during the period. Kestra Advisory Services LLC purchased a new position in Barrett Business Services during the fourth quarter valued at approximately $39,000. AlphaQuest LLC bought a new stake in Barrett Business Services during the 3rd quarter worth approximately $54,000. Finally, Bard Associates Inc. purchased a new stake in Barrett Business Services in the 4th quarter worth approximately $50,000. Institutional investors own 86.76% of the company's stock.

Barrett Business Services Company Profile

Barrett Business Services, Inc NASDAQ: BBSI is a professional employer organization (PEO) headquartered in Northridge, California. Founded in 1971 by Barrett K. Levesque, the company provides comprehensive human resources outsourcing solutions to small and mid-sized businesses. Through its consultative model, Barrett Business Services helps clients streamline administrative processes, mitigate regulatory risk and focus on core operations.

The company's core offerings include payroll administration, employee benefits management, workers' compensation and risk management services.

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