GMS Inc. (NYSE:GMS) Holdings Lifted by American Century Companies Inc.

Key Points

• American Century Companies Inc. increased its stake in GMS Inc. by 12.9% in the first quarter, holding approximately 4.32% of the company, valued at about $121.5 million.
• Insider trading has been notable, with COO George T. Hendren and major shareholder Coliseum Capital Management both selling significant shares, resulting in a 17.27% and 1.55% decrease in their positions, respectively.
• Several brokerages have updated their ratings on GMS, with Stephens downgrading it from "strong-buy" to "hold," while others adjusted target prices, indicating a consensus rating of "Hold" with an average target price of $101.11.

American Century Companies Inc. grew its position in GMS Inc. (NYSE:GMS - Free Report) by 12.9% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,660,194 shares of the company's stock after purchasing an additional 189,760 shares during the period. American Century Companies Inc. owned about 4.32% of GMS worth $121,476,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. Allspring Global Investments Holdings LLC increased its position in GMS by 51.3% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 8,116 shares of the company's stock worth $598,000 after purchasing an additional 2,753 shares during the last quarter. Principal Financial Group Inc. increased its position in GMS by 1.7% in the 1st quarter. Principal Financial Group Inc. now owns 224,048 shares of the company's stock worth $16,394,000 after purchasing an additional 3,799 shares during the last quarter. SG Americas Securities LLC acquired a new position in GMS in the 1st quarter worth about $442,000. Yousif Capital Management LLC increased its position in GMS by 1.0% in 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 last quarter. Finally, GAMMA Investing LLC increased its position in GMS by 38.3% in the 1st quarter. GAMMA Investing LLC now owns 801 shares of the company's stock worth $59,000 after purchasing an additional 222 shares during the last quarter. 95.28% of the stock is owned by institutional investors and hedge funds.

Insider Activity at GMS

In related news, COO George T. Hendren sold 5,000 shares of the stock in a transaction that occurred on Monday, June 30th. The stock was sold at an average price of $108.23, for a total transaction 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 represents a 17.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Coliseum Capital Management, L sold 54,944 shares of the stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $110.05, for a total value of $6,046,587.20. Following the sale, the insider owned 3,486,524 shares of the company's stock, valued at approximately $383,691,966.20. The trade was a 1.55% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 343,627 shares of company stock valued at $37,808,097. 1.90% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on GMS. Stephens lowered GMS from a "strong-buy" rating to a "hold" rating and set a $95.00 target price on the stock. in a research report on Friday, June 27th. Raymond James Financial lowered GMS from an "outperform" rating to a "market perform" rating in a research report on Wednesday, June 25th. Truist Financial upped their target price on GMS from $105.00 to $110.00 and gave the stock a "hold" rating in a research report on Tuesday, July 1st. Loop Capital upped their price target on GMS from $95.00 to $110.00 and gave the stock a "hold" rating in a research note on Tuesday, July 1st. Finally, Barclays upped their price target on GMS from $95.00 to $110.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 1st. Ten equities research analysts have rated the stock with a hold rating, According to MarketBeat, GMS has a consensus rating of "Hold" and an average target price of $101.11.

GMS Stock Performance

GMS opened at $109.41 on Friday. The company has a market cap of $4.16 billion, a PE ratio of 37.86 and a beta of 1.76. The stock has a 50-day moving average of $102.63 and a 200-day moving average of $85.09. GMS Inc. has a 52-week low of $65.77 and a 52-week high of $110.28. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.17 and a current ratio of 1.91.

GMS (NYSE:GMS - Get Free Report) last released its quarterly earnings results on Wednesday, June 18th. The company reported $1.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.11 by $0.18. GMS had a return on equity of 16.97% and a net margin of 2.09%. The company had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter in the prior year, the company posted $1.93 EPS. The firm's revenue was down 5.6% on a year-over-year basis. As a group, equities research analysts forecast that GMS Inc. will post 7.26 earnings per share for the current fiscal year.

About GMS

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.

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