Coliseum Capital Management LLC Increases Stake in GMS Inc. $GMS

Key Points

• Coliseum Capital Management LLC has significantly increased its stake in GMS Inc., owning a total of 3,437,488 shares after purchasing an additional 1,547,999 shares, making it the largest holding in their portfolio.
• Insiders, including COO George T. Hendren, have recently sold shares, with Hendren selling 5,000 shares for a total of $541,150, reducing his ownership by 17.27%.
• GMS Inc. reported a net margin of 1.86% and a return on equity of 16.36% in its latest earnings, despite posting a decrease in revenue of 2.4% year-over-year.

Coliseum Capital Management LLC grew its holdings in GMS Inc. (NYSE:GMS - Free Report) by 81.9% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 3,437,488 shares of the company's stock after acquiring an additional 1,547,999 shares during the quarter. GMS accounts for 21.0% of Coliseum Capital Management LLC's portfolio, making the stock its largest holding. Coliseum Capital Management LLC owned approximately 8.95% of GMS worth $251,521,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also modified their holdings of the stock. Northern Trust Corp raised its stake in GMS by 13.9% during the 4th quarter. Northern Trust Corp now owns 580,130 shares of the company's stock valued at $49,212,000 after purchasing an additional 70,927 shares during the last quarter. AQR Capital Management LLC raised its stake in GMS by 1.0% during the 4th quarter. AQR Capital Management LLC now owns 62,466 shares of the company's stock valued at $5,299,000 after purchasing an additional 626 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its stake in GMS by 41.8% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 11,730 shares of the company's stock valued at $995,000 after purchasing an additional 3,459 shares during the last quarter. Brevan Howard Capital Management LP acquired a new position in GMS during the 4th quarter valued at $295,000. Finally, CastleKnight Management LP acquired a new position in GMS during the 4th quarter valued at $993,000. Institutional investors and hedge funds own 95.28% of the company's stock.

GMS Price Performance

NYSE:GMS traded down $0.02 during trading hours on Friday, reaching $109.96. The company had a trading volume of 710,652 shares, compared to its average volume of 780,710. The stock has a 50-day moving average of $109.64 and a two-hundred day moving average of $87.81. GMS Inc. has a one year low of $65.77 and a one year high of $110.28. The firm has a market capitalization of $4.20 billion, a PE ratio of 42.29 and a beta of 1.76. The company has a quick ratio of 1.31, a current ratio of 2.11 and a debt-to-equity ratio of 0.87.

GMS (NYSE:GMS - Get Free Report) last announced its quarterly earnings results on Thursday, September 4th. The company reported $1.76 earnings per share for the quarter, missing analysts' consensus estimates of $1.77 by ($0.01). GMS had a net margin of 1.86% and a return on equity of 16.36%. The company had revenue of $1.41 billion during the quarter, compared to the consensus estimate of $1.40 billion. During the same quarter last year, the company earned $1.93 earnings per share. The business's revenue was down 2.4% on a year-over-year basis. Analysts forecast that GMS Inc. will post 7.26 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on GMS shares. Stephens cut shares of GMS from a "strong-buy" rating to a "hold" rating and set a $95.00 target price for the company. in a research note on Friday, June 27th. Robert W. Baird restated a "neutral" rating and issued a $95.00 target price (up from $93.00) on shares of GMS in a research note on Monday, June 23rd. DA Davidson upped their target price on GMS from $95.20 to $110.00 and gave the company a "neutral" rating in a research note on Tuesday, July 1st. Raymond James Financial lowered GMS from an "outperform" rating to a "market perform" rating in a research note on Wednesday, June 25th. Finally, Royal Bank Of Canada upped their target price on GMS from $95.20 to $110.00 and gave the company a "sector perform" rating in a research note on Tuesday, July 1st. Nine equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $101.11.

Insiders Place Their Bets

In other GMS news, major shareholder Coliseum Capital Management, L sold 54,944 shares of the company's stock in a transaction on Wednesday, July 16th. The stock was sold at an average price of $110.05, for a total value of $6,046,587.20. Following the sale, the insider directly owned 3,486,524 shares in the company, valued at $383,691,966.20. This represents a 1.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, COO George T. Hendren sold 5,000 shares of the company's stock in a transaction on Monday, June 30th. The shares were sold at an average price of $108.23, for a total value of $541,150.00. Following the completion of the sale, the chief operating officer owned 23,950 shares in the company, valued at $2,592,108.50. This trade represents a 17.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 343,627 shares of company stock worth $37,808,097 over the last quarter. Company insiders own 1.90% of the company's stock.

GMS Company Profile

GMS Inc distributes wallboard, ceilings, steel framing and complementary construction products in the United States and Canada. The company offers ceilings products, including suspended mineral fibers, soft fibers, and metal ceiling systems primarily used in offices, hotels, hospitals, retail facilities, schools, and various other commercial and institutional buildings.