Coliseum Capital Management LLC Purchases 1,547,999 Shares of 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 boosted its position in GMS Inc. (NYSE:GMS - Free Report) by 81.9% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 3,437,488 shares of the company's stock after purchasing an additional 1,547,999 shares during the quarter. GMS comprises approximately 21.0% of Coliseum Capital Management LLC's investment portfolio, making the stock its largest position. Coliseum Capital Management LLC owned about 8.95% of GMS worth $251,521,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in the company. Yousif Capital Management LLC grew its holdings in shares of GMS by 1.0% during the 1st quarter. Yousif Capital Management LLC now owns 15,143 shares of the company's stock worth $1,108,000 after purchasing an additional 147 shares during the period. Vise Technologies Inc. boosted its holdings in GMS by 2.3% during the 4th quarter. Vise Technologies Inc. now owns 7,090 shares of the company's stock valued at $601,000 after acquiring an additional 162 shares during the period. SummerHaven Investment Management LLC boosted its holdings in GMS by 1.8% during the 1st quarter. SummerHaven Investment Management LLC now owns 9,776 shares of the company's stock valued at $715,000 after acquiring an additional 171 shares during the period. Sherbrooke Park Advisers LLC boosted its holdings in GMS by 4.0% during the 4th quarter. Sherbrooke Park Advisers LLC now owns 5,536 shares of the company's stock valued at $470,000 after acquiring an additional 211 shares during the period. Finally, GAMMA Investing LLC boosted its holdings in GMS by 38.3% during the 1st quarter. GAMMA Investing LLC now owns 801 shares of the company's stock valued at $59,000 after acquiring an additional 222 shares during the period. 95.28% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the company. Raymond James Financial cut GMS from an "outperform" rating to a "market perform" rating in a report on Wednesday, June 25th. Loop Capital raised their target price on GMS from $95.00 to $110.00 and gave the company a "hold" rating in a report on Tuesday, July 1st. Barclays raised their target price on GMS from $95.00 to $110.00 and gave the company an "equal weight" rating in a report on Tuesday, July 1st. DA Davidson raised their target price on GMS from $95.20 to $110.00 and gave the company a "neutral" rating in a report on Tuesday, July 1st. Finally, Robert W. Baird restated a "neutral" rating and set a $95.00 target price (up from $93.00) on shares of GMS in a report on Monday, June 23rd. Nine research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $101.11.

Insider Activity

In other news, COO George T. Hendren sold 5,000 shares of the firm's stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $108.23, for a total transaction of $541,150.00. Following the sale, the chief operating officer owned 23,950 shares of the company's stock, valued at approximately $2,592,108.50. This trade represents a 17.27% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Coliseum Capital Management, L sold 54,944 shares of the firm's stock in a transaction dated 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 trade represents a 1.55% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 343,627 shares of company stock worth $37,808,097 in the last three months. Corporate insiders own 1.90% of the company's stock.

GMS Stock Down 0.0%

Shares of NYSE GMS traded down $0.02 during midday trading on Tuesday, hitting $109.96. 710,652 shares of the company's stock were exchanged, compared to its average volume of 780,710. The company has a debt-to-equity ratio of 0.87, a current ratio of 2.11 and a quick ratio of 1.31. GMS Inc. has a twelve month low of $65.77 and a twelve month high of $110.28. The company has a market cap of $4.20 billion, a PE ratio of 42.29 and a beta of 1.76. The firm's fifty day simple moving average is $109.66 and its 200-day simple moving average is $88.08.

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

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.