Barrett Business Services (NASDAQ:BBSI) Sets New 52-Week High on Strong Earnings

Key Points

• Barrett Business Services achieved a new 52-week high of $48.47 after reporting strong quarterly earnings, with an EPS of $0.70, surpassing estimates by $0.05 and generating revenues of $307.7 million.
• Analysts have mixed views on the stock, with Wall Street Zen downgrading it from "strong-buy" to "hold," while Barrington Research maintains an "outperform" rating and a price target of $45.00.
• Insider trading indicates significant activity, with Directors selling a total of 33,061 shares in the last 90 days, reflecting a decreasing stake in the company.

Shares of Barrett Business Services, Inc. (NASDAQ:BBSI - Get Free Report) reached a new 52-week high on Thursday following a stronger than expected earnings report. The company traded as high as $48.47 and last traded at $47.41, with a volume of 49022 shares traded. The stock had previously closed at $44.39.

The business services provider reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.65 by $0.05. The firm had revenue of $307.70 million for the quarter, compared to the consensus estimate of $299.95 million. Barrett Business Services had a return on equity of 24.59% and a net margin of 4.49%. The company's revenue for the quarter was up 10.0% on a year-over-year basis. During the same quarter last year, the business posted $0.62 EPS.

Barrett Business Services Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 5th. Investors of record on Friday, August 22nd will be paid a $0.08 dividend. The ex-dividend date of this dividend is Friday, August 22nd. This represents a $0.32 annualized dividend and a dividend yield of 0.7%. Barrett Business Services's payout ratio is currently 15.76%.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Barrington Research upped their price objective on shares of Barrett Business Services from $45.00 to $49.00 and gave the company an "outperform" rating in a report on Thursday. Wall Street Zen lowered shares of Barrett Business Services from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 16th.

Insider Buying and Selling

In related news, Director Anthony Meeker sold 7,380 shares of the firm's stock in a transaction on Tuesday, June 10th. The shares were sold at an average price of $42.14, for a total transaction of $310,993.20. Following the completion of the transaction, the director directly owned 55,504 shares of the company's stock, valued at approximately $2,338,938.56. This trade represents a 11.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO Gerald Blotz sold 13,327 shares of the firm's stock in a transaction dated Wednesday, July 2nd. The stock was sold at an average price of $42.71, for a total transaction of $569,196.17. Following the completion of the transaction, the chief operating officer directly owned 209,096 shares in the company, valued at $8,930,490.16. This represents a 5.99% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 33,061 shares of company stock valued at $1,406,470 over the last quarter. Corporate insiders own 4.10% of the company's stock.

Hedge Funds Weigh In On Barrett Business Services

Several institutional investors have recently made changes to their positions in BBSI. Creative Planning boosted its position in shares of Barrett Business Services by 71.8% during the 2nd quarter. Creative Planning now owns 9,778 shares of the business services provider's stock valued at $408,000 after acquiring an additional 4,085 shares during the last quarter. SG Americas Securities LLC increased its stake in Barrett Business Services by 141.7% in the second quarter. SG Americas Securities LLC now owns 29,201 shares of the business services provider's stock valued at $1,217,000 after purchasing an additional 17,117 shares during the last quarter. CSM Advisors LLC acquired a new stake in shares of Barrett Business Services in the second quarter valued at approximately $6,155,000. Campbell & CO Investment Adviser LLC lifted its holdings in shares of Barrett Business Services by 182.1% during the second quarter. Campbell & CO Investment Adviser LLC now owns 37,145 shares of the business services provider's stock worth $1,549,000 after purchasing an additional 23,977 shares during the period. Finally, Bank of New York Mellon Corp lifted its holdings in Barrett Business Services by 1.0% in the second quarter. Bank of New York Mellon Corp now owns 154,008 shares of the business services provider's stock valued at $6,421,000 after acquiring an additional 1,578 shares during the period. 86.76% of the stock is owned by hedge funds and other institutional investors.

Barrett Business Services Trading Down 0.9%

The company has a quick ratio of 1.25, a current ratio of 1.25 and a debt-to-equity ratio of 0.35. The business has a fifty day simple moving average of $43.20 and a 200 day simple moving average of $41.82. The company has a market cap of $1.20 billion, a price-to-earnings ratio of 23.01, a P/E/G ratio of 1.54 and a beta of 1.02.

About Barrett Business Services

Barrett Business Services, Inc provides business management solutions for small and mid-sized companies in the United States. The company develops a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry.