Barrett Business Services, Inc. (NASDAQ:BBSI) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately positive: Six brokerages rate Barrett Business Services a consensus “Moderate Buy,” with an average 12-month price target of $41.00 versus the reported share price of $32.86. Recent recommendations were mixed, including a downgrade to “Strong Sell” from Zacks Research and a target reduction from Roth Capital.
• Quarterly results fell short of expectations: BBSI reported earnings of $0.52 per share versus the $0.56 consensus estimate and revenue of $319.27 million versus expectations of $321.55 million. The company nevertheless declared a quarterly dividend of $0.08, representing a 1.0% annualized yield.
• Ownership activity was mixed: Insiders sold 20,779 shares worth approximately $786,233 over the past 90 days, while institutional investors own 86.76% of the company and several major funds increased their positions.

Shares of Barrett Business Services, Inc. (NASDAQ:BBSI - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the six research firms that are currently covering the firm, MarketBeat reports. One analyst has rated the stock with a sell recommendation, two have given a hold recommendation, two have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $41.00.

Several brokerages recently commented on BBSI. Barrington Research set a $44.00 price target on Barrett Business Services in a research note on Thursday, August 6th. Wall Street Zen upgraded Barrett Business Services from a "sell" rating to a "hold" rating in a research note on Saturday, June 6th. Zacks Research cut Barrett Business Services from a "hold" rating to a "strong sell" rating in a report on Friday, August 7th. Weiss Ratings upgraded shares of Barrett Business Services from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, July 13th. Finally, Roth Capital lowered shares of Barrett Business Services from a "buy" rating to a "neutral" rating and lowered their target price for the stock from $42.00 to $38.00 in a report on Thursday, August 6th.

Insider Activity

In other Barrett Business Services 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 sale, the director directly owned 44,945 shares of the company's stock, valued at approximately $1,701,168.25. This represents a 21.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP James Potts sold 3,490 shares of Barrett Business Services stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $38.00, for a total transaction of $132,620.00. Following the completion of the transaction, the executive vice president owned 32,035 shares of the company's stock, valued at $1,217,330. This trade represents a 9.82% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 20,779 shares of company stock worth $786,233 over the last ninety days. Insiders own 4.80% of the company's stock.

Institutional Trading of Barrett Business Services

Several large investors have recently made changes to their positions in the business. BlackRock Inc. bought a new position in shares of Barrett Business Services in the second quarter valued at about $72,793,000. Mawer Investment Management Ltd. grew its holdings in Barrett Business Services by 0.7% during the 4th quarter. Mawer Investment Management Ltd. now owns 1,964,053 shares of the business services provider's stock worth $71,118,000 after acquiring an additional 13,331 shares during the last quarter. Royce & Associates LP increased its position in Barrett Business Services by 31.6% in the 4th quarter. Royce & Associates LP now owns 870,863 shares of the business services provider's stock valued at $31,534,000 after acquiring an additional 208,865 shares in the last quarter. Dimensional Fund Advisors LP increased its position in Barrett Business Services by 4.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 661,181 shares of the business services provider's stock valued at $19,295,000 after acquiring an additional 25,221 shares in the last quarter. Finally, Trigran Investments Inc. raised its stake in shares of Barrett Business Services by 62.3% in the fourth quarter. Trigran Investments Inc. now owns 648,738 shares of the business services provider's stock worth $23,491,000 after acquiring an additional 249,052 shares during the last quarter. Institutional investors own 86.76% of the company's stock.

Barrett Business Services Stock Down 1.3%

Shares of BBSI opened at $32.86 on Friday. The stock has a market cap of $796.53 million, a price-to-earnings ratio of 24.16, a P/E/G ratio of 1.24 and a beta of 0.92. Barrett Business Services has a 12 month low of $25.33 and a 12 month high of $46.93. The company has a 50-day moving average price of $35.60 and a two-hundred day moving average price of $32.77.

Barrett Business Services (NASDAQ:BBSI - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The business services provider reported $0.52 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.04). Barrett Business Services had a net margin of 2.77% and a return on equity of 20.95%. The company had revenue of $319.27 million during the quarter, compared to the consensus estimate of $321.55 million. Equities research analysts expect that Barrett Business Services will post 1.68 EPS for the current fiscal year.

Barrett Business Services Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, September 4th. Shareholders of record on Friday, August 21st were given a $0.08 dividend. The ex-dividend date was Friday, August 21st. This represents a $0.32 dividend on an annualized basis and a yield of 1.0%. Barrett Business Services's payout ratio is 23.53%.

Barrett Business Services Company Profile

Barrett Business Services, Inc NASDAQ: BBSI provides business management solutions for small and mid-sized companies in the United States. The company combines professional employer organization (PEO) services with staffing and recruiting capabilities, allowing clients to outsource or supplement key human resources and administrative functions.

Its services include payroll administration, employee benefits support, workers' compensation management, human resources guidance, workplace safety and risk management, and regulatory compliance assistance.

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