Blue Bird (NASDAQ:BLBD) Cut to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Blue Bird from “hold” to “strong sell”, even though other analysts remain more constructive overall. The stock’s consensus rating is still Moderate Buy with a target price of $75.80.
• Blue Bird reported better-than-expected quarterly results, posting earnings of $1.00 per share versus estimates of $0.88 and revenue of $352.64 million versus forecasts of $335.23 million. However, revenue was still down 1.7% year over year.
• The stock was down 1.5% on the day to $69.33, after trading between a 12-month low of $37.68 and high of $81.51. Insider selling was also noted, including share sales by the CFO and COO.

Blue Bird (NASDAQ:BLBD - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other analysts also recently commented on BLBD. Wall Street Zen downgraded Blue Bird from a "strong-buy" rating to a "buy" rating in a research report on Saturday, February 7th. Needham & Company LLC upped their price objective on Blue Bird from $78.00 to $86.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. BTIG Research increased their target price on Blue Bird from $65.00 to $80.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Freedom Capital downgraded Blue Bird from a "strong-buy" rating to a "hold" rating in a research report on Thursday, May 7th. Finally, Barclays upped their price target on Blue Bird from $55.00 to $75.00 and gave the stock an "overweight" rating in a research note on Thursday, May 7th. Six equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $75.80.

Blue Bird Trading Down 1.5%

NASDAQ:BLBD opened at $69.33 on Monday. The firm has a market cap of $2.19 billion, a P/E ratio of 17.03, a PEG ratio of 0.99 and a beta of 1.38. The company has a current ratio of 1.83, a quick ratio of 1.27 and a debt-to-equity ratio of 0.28. The stock's 50 day simple moving average is $59.72 and its 200-day simple moving average is $54.84. Blue Bird has a 12-month low of $37.68 and a 12-month high of $81.51.

Blue Bird (NASDAQ:BLBD - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The company reported $1.00 earnings per share for the quarter, topping analysts' consensus estimates of $0.88 by $0.12. Blue Bird had a return on equity of 53.68% and a net margin of 8.91%.The firm had revenue of $352.64 million for the quarter, compared to analyst estimates of $335.23 million. During the same quarter in the prior year, the company posted $0.96 earnings per share. Blue Bird's quarterly revenue was down 1.7% on a year-over-year basis. Equities analysts anticipate that Blue Bird will post 4.35 EPS for the current year.

Insider Buying and Selling

In other news, CFO Razvan Radulescu sold 3,925 shares of Blue Bird stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $60.98, for a total value of $239,346.50. Following the completion of the transaction, the chief financial officer owned 42,255 shares in the company, valued at approximately $2,576,709.90. This trade represents a 8.50% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Jeffrey Scott Sanfrey sold 5,192 shares of Blue Bird stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $58.54, for a total value of $303,939.68. Following the completion of the transaction, the chief operating officer owned 39,011 shares of the company's stock, valued at approximately $2,283,703.94. The trade was a 11.75% decrease in their position. The SEC filing for this sale provides additional information. 1.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Blue Bird by 10,028.6% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 709 shares of the company's stock worth $41,000 after purchasing an additional 702 shares during the last quarter. Rockefeller Capital Management L.P. raised its stake in Blue Bird by 210.0% during the 4th quarter. Rockefeller Capital Management L.P. now owns 775 shares of the company's stock valued at $36,000 after acquiring an additional 525 shares in the last quarter. Transamerica Financial Advisors LLC raised its stake in Blue Bird by 222.7% during the 4th quarter. Transamerica Financial Advisors LLC now owns 823 shares of the company's stock valued at $39,000 after acquiring an additional 568 shares in the last quarter. Aster Capital Management DIFC Ltd acquired a new position in shares of Blue Bird during the 4th quarter valued at $41,000. Finally, Larson Financial Group LLC increased its position in shares of Blue Bird by 1,742.3% during the 3rd quarter. Larson Financial Group LLC now owns 1,308 shares of the company's stock valued at $75,000 after purchasing an additional 1,237 shares during the period. Institutional investors and hedge funds own 93.59% of the company's stock.

Blue Bird Company Profile

Blue Bird Corporation NASDAQ: BLBD is a leading manufacturer of buses and mass transportation vehicles headquartered in Fort Valley, Georgia. The company's core business encompasses the design, engineering, and production of school buses and activity buses, with a product lineup that includes conventional (Type C) models, transit-style (Type D) models and specialty configurations for special-needs and activity transport. In recent years, Blue Bird has expanded its offerings to include zero-emission electric school buses, reflecting its commitment to advanced propulsion technologies and environmental sustainability.

Established in 1927, Blue Bird has built a legacy of safety and reliability in student transportation.

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