Blue Bird (NASDAQ:BLBD) Trading Down 10% - Should You Sell?

Key Points

• Blue Bird shares fell 10% to about $69.26 despite strong fiscal Q3 results, with revenue of $517.2 million and adjusted EPS of $1.28 beating analyst expectations. Trading volume was also 61% below the average session volume.
• The company projected fiscal 2026 revenue of approximately $1.8 billion, above consensus estimates, while a new Ford agreement could expand Blue Bird’s commercial-vehicle business beyond school buses.
• Analyst sentiment remains broadly positive, with seven Buy ratings, two Holds, and a consensus price target of $84.67; however, some firms recently downgraded the stock to Hold, suggesting valuation or profit-taking concerns may be contributing to the selloff.

Blue Bird Corporation (NASDAQ:BLBD - Get Free Report)'s share price was down 10% during trading on Thursday . The company traded as low as $68.18 and last traded at $69.26. 173,605 shares traded hands during trading, a decline of 61% from the average session volume of 439,607 shares. The stock had previously closed at $76.93.

Key Blue Bird News

Here are the key news stories impacting Blue Bird this week:

• Positive Sentiment: Quarterly results exceeded expectations. Fiscal Q3 revenue rose to $517.2 million, above the $485.7 million consensus estimate, while adjusted EPS of $1.28 topped expectations of $1.22-$1.25 and increased from $1.19 a year earlier. Unit sales also rose by 1,058 year over year to 3,525. Blue Bird Reports Fiscal 2026 Third Quarter Results
• Positive Sentiment: Full-year revenue guidance was raised or reaffirmed above consensus. Blue Bird projected fiscal 2026 revenue of approximately $1.8 billion, compared with analyst expectations of about $1.7 billion, signaling continued demand and operational momentum.
• Positive Sentiment: Analysts became more bullish. BTIG Research raised its price target from $80 to $95 and assigned a “buy” rating. Needham reaffirmed its “buy” rating with an $86 target. The targets imply meaningful upside from the cited current price. Analyst price-target updates
• Positive Sentiment: Ford collaboration expands Blue Bird’s addressable market. Under a definitive agreement, Blue Bird will design, manufacture, and sell the next generation of Ford F-53/F-59 commercial stripped chassis, broadening its commercial-vehicle operations beyond school buses. Blue Bird Enters Definitive Agreement with Ford
• Negative Sentiment: Market reaction has been unfavorable despite the positive announcements. The supplied coverage does not cite a specific disappointment in guidance, earnings, or the Ford agreement, suggesting the decline may reflect profit-taking, valuation concerns, or broader trading factors rather than an identifiable deterioration in Blue Bird’s fundamentals.

Analysts Set New Price Targets

Several research analysts recently commented on the company. Needham & Company LLC reissued a "buy" rating and set a $86.00 price target on shares of Blue Bird in a research report on Thursday. Freedom Capital downgraded Blue Bird from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 7th. Wall Street Zen downgraded shares of Blue Bird from a "buy" rating to a "hold" rating in a report on Saturday, July 25th. DA Davidson set a $86.00 price objective on shares of Blue Bird in a research report on Tuesday, June 9th. Finally, BTIG Research upped their target price on shares of Blue Bird from $80.00 to $95.00 and gave the company a "buy" rating in a report on Thursday. Seven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Blue Bird has an average rating of "Moderate Buy" and a consensus target price of $84.67.

Blue Bird Stock Down 13.3%

The company has a market cap of $2.11 billion, a price-to-earnings ratio of 16.42, a P/E/G ratio of 1.05 and a beta of 1.36. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.83 and a quick ratio of 1.27. The firm has a 50-day moving average price of $75.19 and a 200 day moving average price of $64.81.

Blue Bird (NASDAQ:BLBD - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $1.28 earnings per share for the quarter, topping the consensus estimate of $1.25 by $0.03. Blue Bird had a return on equity of 53.68% and a net margin of 8.91%.The business had revenue of $517.16 million during the quarter, compared to analysts' expectations of $485.73 million. Sell-side analysts predict that Blue Bird Corporation will post 4.5 EPS for the current year.

Hedge Funds Weigh In On Blue Bird

Several institutional investors and hedge funds have recently modified their holdings of BLBD. Rockefeller Capital Management L.P. raised its stake 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 purchasing an additional 525 shares in the last quarter. Transamerica Financial Advisors LLC increased its holdings in shares of Blue Bird by 222.7% during the fourth quarter. Transamerica Financial Advisors LLC now owns 823 shares of the company's stock worth $39,000 after purchasing an additional 568 shares during the period. Caitong International Asset Management Co. Ltd increased its holdings in shares of Blue Bird by 10,028.6% during the third 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 period. Aster Capital Management DIFC Ltd acquired a new stake in shares of Blue Bird in the fourth quarter valued at approximately $41,000. Finally, GAMMA Investing LLC raised its position in shares of Blue Bird by 85.5% in the second quarter. GAMMA Investing LLC now owns 629 shares of the company's stock valued at $50,000 after buying an additional 290 shares in the last quarter. 93.59% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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