Boyd Group Services (NYSE:BGSI) Stock Price Down 5.7% on Disappointing Earnings

Key Points

• Boyd Group Services shares fell 5.7% to about $99 after the company reported quarterly EPS of $0.80, missing the $0.94 analyst consensus. Revenue was $1.01 billion, slightly below expectations of $1.02 billion.
• The company paid a quarterly dividend of $0.156 per share, equivalent to an annualized $0.62 dividend and a 0.6% yield; its payout ratio is 66.67%.
• Analyst sentiment remains mixed, but the stock carries a consensus “Moderate Buy” rating and a $157 target price, substantially above its recent trading level.

Boyd Group Services Inc. (NYSE:BGSI - Get Free Report)'s stock price dropped 5.7% on Thursday following a weaker than expected earnings announcement. The company traded as low as $98.13 and last traded at $99.0810. Approximately 15,289 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 46,580 shares. The stock had previously closed at $105.06.

The company reported $0.80 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.94 by ($0.14). The business had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $1.02 billion. Boyd Group Services had a return on equity of 4.90% and a net margin of 0.39%.

Boyd Group Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 29th. Investors of record on Tuesday, June 30th were paid a dividend of $0.156 per share. This represents a $0.62 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Tuesday, June 30th. Boyd Group Services's dividend payout ratio is currently 66.67%.

Analysts Set New Price Targets

A number of research firms have weighed in on BGSI. Wall Street Zen lowered shares of Boyd Group Services from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Boyd Group Services in a report on Wednesday, June 24th. Finally, Zacks Research upgraded Boyd Group Services from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $157.00.

Institutional Trading of Boyd Group Services

Several institutional investors have recently made changes to their positions in the company. FIL Ltd purchased a new stake in Boyd Group Services in the fourth quarter valued at $411,269,000. Mackenzie Financial Corp acquired a new position in Boyd Group Services in the fourth quarter valued at about $327,955,000. Bank of Montreal Can purchased a new position in Boyd Group Services during the fourth quarter worth about $209,537,000. Royal Bank of Canada purchased a new position in Boyd Group Services during the fourth quarter worth about $204,276,000. Finally, Vanguard Group Inc. acquired a new stake in shares of Boyd Group Services during the fourth quarter valued at about $187,263,000. Hedge funds and other institutional investors own 0.17% of the company's stock.

Boyd Group Services Trading Down 5.7%

The business's 50-day simple moving average is $99.51 and its two-hundred day simple moving average is $125.27. The firm has a market capitalization of $2.76 billion, a price-to-earnings ratio of 149.85 and a beta of 0.72. The company has a quick ratio of 0.46, a current ratio of 0.60 and a debt-to-equity ratio of 0.58.

About Boyd Group Services

Boyd Group Services Inc is a North American operator of collision repair centers that provides vehicle repair, paint and refinishing, and auto glass replacement services. Its locations perform mechanical and cosmetic collision repairs, parts sourcing, and related warranty work, serving retail customers as well as business clients such as insurers and fleet operators. The company’s operations typically include estimating, repair planning, paint and body work, and post-repair quality assurance and customer service.

Headquartered in Winnipeg, Manitoba, Canada, Boyd Group Services operates across both Canada and the United States through a network of company-owned collision repair facilities under various local and regional brand names.

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