Blue Bird (NASDAQ:BLBD) Shares Down 8.5% - Should You Sell?

Key Points

• Blue Bird shares fell 8.5% in Tuesday trading, briefly touching $68.05 before last trading near $66.55, well below the prior close of $72.74.
• Several analysts recently raised price targets on the stock, with Needham, Barclays, and BTIG all maintaining bullish ratings; the consensus target is $75.80 and the overall view remains Moderate Buy.
• The company posted better-than-expected quarterly results, earning $1.00 per share versus $0.88 expected and generating $352.64 million in revenue, though sales were still down 1.7% year over year.

Blue Bird Corporation (NASDAQ:BLBD - Get Free Report)'s share price was down 8.5% during trading on Tuesday . The company traded as low as $68.05 and last traded at $66.5450. Approximately 30,194 shares traded hands during mid-day trading, a decline of 93% from the average daily volume of 434,964 shares. The stock had previously closed at $72.74.

Analysts Set New Price Targets

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

Blue Bird Stock Performance

The business's fifty day moving average is $60.89 and its 200-day moving average is $55.32. The company has a quick ratio of 1.27, a current ratio of 1.83 and a debt-to-equity ratio of 0.28. The company has a market cap of $2.05 billion, a PE ratio of 15.86, a P/E/G ratio of 1.01 and a beta of 1.38.

Blue Bird (NASDAQ:BLBD - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported $1.00 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to analyst estimates of $335.23 million. During the same period in the prior year, the business posted $0.96 EPS. Blue Bird's revenue was down 1.7% on a year-over-year basis. As a group, research analysts predict that Blue Bird Corporation will post 4.35 EPS for the current fiscal year.

Insider Transactions at Blue Bird

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

Institutional Trading of Blue Bird

Institutional investors and hedge funds have recently modified their holdings of the company. Rockefeller Capital Management L.P. boosted its holdings in Blue Bird by 210.0% in the 4th quarter. Rockefeller Capital Management L.P. now owns 775 shares of the company's stock worth $36,000 after buying an additional 525 shares during the period. Transamerica Financial Advisors LLC raised its holdings in Blue Bird by 222.7% during the fourth quarter. Transamerica Financial Advisors LLC now owns 823 shares of the company's stock valued at $39,000 after acquiring an additional 568 shares during the period. Caitong International Asset Management Co. Ltd lifted its position in shares of Blue Bird by 10,028.6% in the third quarter. Caitong International Asset Management Co. Ltd now owns 709 shares of the company's stock valued at $41,000 after acquiring an additional 702 shares in the last quarter. Aster Capital Management DIFC Ltd purchased a new position in shares of Blue Bird in the fourth quarter valued at about $41,000. Finally, Mcguire Capital Advisors Inc. bought a new position in shares of Blue Bird in the fourth quarter worth about $63,000. 93.59% of the stock is currently owned by institutional investors.

About Blue Bird

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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