Barrett Business Services (NASDAQ:BBSI) Shares Cross Above 200-Day Moving Average - Here's Why

Key Points

• Barrett Business Services (NASDAQ:BBSI) shares moved above their 200-day moving average, trading as high as $39.26 and last changing hands at $38.46, indicating recent technical strength.
• The company’s latest earnings beat expectations, posting EPS of -$0.13 versus a -$0.15 estimate, while revenue rose 4.9% year over year to $307.0 million.
• Analyst sentiment is mixed but generally positive, with a Moderate Buy consensus and a $41.50 average price target; meanwhile, insiders recently sold shares, including director Anthony Meeker and EVP James R. Potts.

Barrett Business Services, Inc. (NASDAQ:BBSI - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of $32.84 and traded as high as $39.26. Barrett Business Services shares last traded at $38.46, with a volume of 210,756 shares.

Analyst Ratings Changes

BBSI has been the subject of a number of research analyst reports. Wall Street Zen raised shares of Barrett Business Services from a "sell" rating to a "hold" rating in a report on Saturday, June 6th. Zacks Research raised Barrett Business Services from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 28th. Weiss Ratings upgraded Barrett Business Services from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday. Finally, Barrington Research reaffirmed an "outperform" rating and set a $41.00 price target on shares of Barrett Business Services in a research note on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Barrett Business Services presently has an average rating of "Moderate Buy" and a consensus price target of $41.50.

Barrett Business Services Stock Down 1.3%

The company has a fifty day moving average price of $33.44 and a 200 day moving average price of $32.84. The stock has a market cap of $944.58 million, a PE ratio of 24.97, a P/E/G ratio of 1.30 and a beta of 0.95.

Barrett Business Services (NASDAQ:BBSI - Get Free Report) last issued its earnings results on Wednesday, May 6th. The business services provider reported ($0.13) earnings per share for the quarter, beating the consensus estimate of ($0.15) by $0.02. Barrett Business Services had a return on equity of 22.89% and a net margin of 3.24%.The company had revenue of $307.00 million during the quarter, compared to analysts' expectations of $306.68 million. During the same period in the prior year, the business posted ($0.04) EPS. Barrett Business Services's quarterly revenue was up 4.9% compared to the same quarter last year. As a group, research analysts predict that Barrett Business Services, Inc. will post 1.88 earnings per share for the current year.

Barrett Business Services Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Friday, May 22nd were given a $0.08 dividend. The ex-dividend date was Friday, May 22nd. This represents a $0.32 annualized dividend and a yield of 0.8%. Barrett Business Services's payout ratio is presently 20.78%.

Insider Buying and Selling

In related news, Director Anthony Meeker sold 12,000 shares of Barrett Business Services stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $37.85, for a total value of $454,200.00. Following the transaction, the director directly owned 44,945 shares of the company's stock, valued at $1,701,168.25. The trade was a 21.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP James R. Potts sold 3,490 shares of the company's stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $38.00, for a total transaction of $132,620.00. Following the sale, the executive vice president owned 32,035 shares of the company's stock, valued at $1,217,330. This represents a 9.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 20,779 shares of company stock valued at $786,233. Insiders own 4.10% of the company's stock.

Institutional Investors Weigh In On Barrett Business Services

A number of large investors have recently added to or reduced their stakes in the company. Swiss National Bank increased its holdings in Barrett Business Services by 1.0% in the 3rd quarter. Swiss National Bank now owns 49,800 shares of the business services provider's stock worth $2,207,000 after buying an additional 500 shares in the last quarter. Farther Finance Advisors LLC raised its position in Barrett Business Services by 63.0% in the 4th quarter. Farther Finance Advisors LLC now owns 1,456 shares of the business services provider's stock worth $53,000 after buying an additional 563 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Barrett Business Services by 4.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,219 shares of the business services provider's stock valued at $626,000 after acquiring an additional 633 shares during the period. Legal & General Group Plc lifted its stake in Barrett Business Services by 1.9% during the 3rd quarter. Legal & General Group Plc now owns 37,091 shares of the business services provider's stock valued at $1,644,000 after acquiring an additional 708 shares during the period. Finally, Willner & Heller LLC boosted its holdings in shares of Barrett Business Services by 2.4% during the 4th quarter. Willner & Heller LLC now owns 34,883 shares of the business services provider's stock valued at $1,263,000 after acquiring an additional 830 shares during the last quarter. 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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