Barrett Business Services (NASDAQ:BBSI) Sets New 1-Year High After 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.

Barrett Business Services, Inc. (NASDAQ:BBSI - Get Free Report) hit a new 52-week high during mid-day trading 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, topping analysts' consensus estimates of $0.65 by $0.05. Barrett Business Services had a return on equity of 24.55% and a net margin of 4.45%. The firm had revenue of $307.70 million during the quarter, compared to analysts' expectations of $299.95 million. During the same period in the prior year, the business earned $0.62 EPS. The company's revenue for the quarter was up 10.0% compared to the same quarter last year.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on BBSI shares. Wall Street Zen lowered Barrett Business Services from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 16th. Barrington Research reaffirmed an "outperform" rating and set a $45.00 price target on shares of Barrett Business Services in a research report on Tuesday, May 6th.

Insider Buying and Selling at Barrett Business Services

In other news, Director Thomas J. Carley sold 12,354 shares of the stock in a transaction that occurred on Tuesday, May 20th. The stock was sold at an average price of $42.60, for a total value of $526,280.40. Following the completion of the transaction, the director owned 91,628 shares of the company's stock, valued at approximately $3,903,352.80. This represents a 11.88% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Anthony Meeker sold 7,380 shares of the company's stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $42.14, for a total value of $310,993.20. Following the completion of the sale, the director owned 55,504 shares in the company, valued at $2,338,938.56. The trade was a 11.74% decrease in their position. The disclosure for this sale can be found here. Insiders sold 33,061 shares of company stock valued at $1,406,470 in the last 90 days. Insiders own 4.10% of the company's stock.

Institutional Trading of Barrett Business Services

Hedge funds and other institutional investors have recently made changes to their positions in the stock. GW&K Investment Management LLC boosted its stake in Barrett Business Services by 2.1% during the 1st quarter. GW&K Investment Management LLC now owns 528,243 shares of the business services provider's stock valued at $21,737,000 after purchasing an additional 10,627 shares during the last quarter. Northern Trust Corp boosted its stake in Barrett Business Services by 4.2% during the 4th quarter. Northern Trust Corp now owns 393,267 shares of the business services provider's stock valued at $17,084,000 after purchasing an additional 15,900 shares during the last quarter. Riverbridge Partners LLC purchased a new stake in Barrett Business Services during the 2nd quarter valued at $14,792,000. Nuveen LLC purchased a new stake in Barrett Business Services during the 1st quarter valued at $12,999,000. Finally, Russell Investments Group Ltd. boosted its stake in Barrett Business Services by 12.0% during the 1st quarter. Russell Investments Group Ltd. now owns 187,629 shares of the business services provider's stock valued at $7,721,000 after purchasing an additional 20,169 shares during the last quarter. Hedge funds and other institutional investors own 86.76% of the company's stock.

Barrett Business Services Trading Up 6.9%

The firm has a 50 day simple moving average of $42.98 and a 200 day simple moving average of $41.80. The firm has a market capitalization of $1.22 billion, a PE ratio of 24.31, a P/E/G ratio of 1.51 and a beta of 1.02.

Barrett Business Services Company Profile

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.

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