Barrett Business Services (NASDAQ:BBSI) Shares Up 6.3% - Should You Buy?

Key Points

• Barrett Business Services shares rose 6.3% on Thursday to about $40.89, after trading as high as $40.82. Volume was far below normal, with just 8,352 shares traded versus an average of 241,636.
• Analyst sentiment has improved, with multiple firms upgrading the stock to “hold” and Barrington Research reiterating an “outperform” rating with a $41 price target. The consensus rating is now “Moderate Buy,” with a consensus target of $41.50.
• Recent results and insider activity were mixed: the company beat earnings and revenue expectations for the latest quarter, but directors and executives sold shares in recent weeks. The stock also pays a quarterly dividend of $0.08 per share, yielding about 0.8% annually.

Shares of Barrett Business Services, Inc. (NASDAQ:BBSI - Get Free Report) were up 6.3% during trading on Thursday . The stock traded as high as $40.82 and last traded at $40.8850. 8,352 shares were traded during trading, a decline of 97% from the average daily volume of 241,636 shares. The stock had previously closed at $38.46.

Wall Street Analyst Weigh In

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

Barrett Business Services Stock Performance

The stock's fifty day simple moving average is $33.63 and its 200-day simple moving average is $32.86. The stock has a market cap of $994.34 million, a P/E ratio of 26.30, a P/E/G ratio of 1.28 and a beta of 0.95.

Barrett Business Services (NASDAQ:BBSI - Get Free Report) last announced its earnings results on Wednesday, May 6th. The business services provider reported ($0.13) EPS for the quarter, topping the consensus estimate of ($0.15) by $0.02. The company had revenue of $307.00 million for the quarter, compared to analysts' expectations of $306.68 million. Barrett Business Services had a net margin of 3.24% and a return on equity of 22.89%. The business's revenue for the quarter was up 4.9% on a year-over-year basis. During the same period last year, the firm earned ($0.04) earnings per share. As a group, equities research analysts forecast 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 announced a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Friday, May 22nd. Barrett Business Services's dividend payout ratio is presently 20.78%.

Insider Transactions at Barrett Business Services

In related news, Director Anthony Meeker sold 12,000 shares of the company's stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $37.85, for a total transaction of $454,200.00. Following the completion of the sale, the director owned 44,945 shares of the company's stock, valued at $1,701,168.25. This represents a 21.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP James R. Potts sold 3,490 shares of the firm's stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $38.00, for a total value of $132,620.00. Following the completion of the sale, the executive vice president directly owned 32,035 shares in the company, valued at $1,217,330. This trade represents a 9.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 20,779 shares of company stock valued at $786,233. 4.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Barrett Business Services

Institutional investors have recently added to or reduced their stakes in the stock. Swiss National Bank raised its position in Barrett Business Services by 1.0% in the third quarter. Swiss National Bank now owns 49,800 shares of the business services provider's stock valued at $2,207,000 after purchasing an additional 500 shares during the last quarter. Farther Finance Advisors LLC increased 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 valued at $53,000 after acquiring an additional 563 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Barrett Business Services by 4.3% in 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 raised its stake in shares of Barrett Business Services by 1.9% during the third 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 last quarter. Finally, Willner & Heller LLC raised its stake in shares of Barrett Business Services by 2.4% during the fourth 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. 86.76% of the stock is currently owned by institutional investors and hedge funds.

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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