Tieton Capital Management LLC Makes New $11.35 Million Investment in Barrett Business Services, Inc. $BBSI

Key Points

• Tieton Capital Management initiated an approximately $11.35 million position in Barrett Business Services, purchasing 319,390 shares and making BBSI 3.3% of its portfolio. Institutional investors collectively own 86.76% of the company.
• Analyst sentiment remains positive overall, with a MarketBeat consensus rating of “Moderate Buy” and an average price target of $41, although Roth Capital downgraded the stock to neutral and lowered its target to $38.
• BBSI reported quarterly EPS of $0.52, below the $0.56 consensus estimate, while revenue of $319.27 million also missed expectations. The company declared a quarterly dividend of $0.08 per share, representing a 1.0% annualized yield.

Tieton Capital Management LLC bought a new stake in Barrett Business Services, Inc. (NASDAQ:BBSI - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 319,390 shares of the business services provider's stock, valued at approximately $11,345,000. Barrett Business Services comprises 3.3% of Tieton Capital Management LLC's portfolio, making the stock its 14th biggest position. Tieton Capital Management LLC owned approximately 1.30% of Barrett Business Services as of its most recent SEC filing.

Several other large investors have also recently bought and sold shares of the stock. Kestra Advisory Services LLC acquired a new position in shares of Barrett Business Services during the 4th quarter worth approximately $39,000. Bard Associates Inc. bought a new position in shares of Barrett Business Services in the fourth quarter valued at $50,000. Farther Finance Advisors LLC raised its position in Barrett Business Services by 63.0% during the fourth quarter. Farther Finance Advisors LLC now owns 1,456 shares of the business services provider's stock worth $53,000 after acquiring an additional 563 shares in the last quarter. Tripletail Wealth Management LLC grew its position in shares of Barrett Business Services by 152.6% in the 4th quarter. Tripletail Wealth Management LLC now owns 1,920 shares of the business services provider's stock valued at $70,000 after acquiring an additional 1,160 shares during the period. Finally, GAMMA Investing LLC increased its stake in shares of Barrett Business Services by 131.0% during the 2nd quarter. GAMMA Investing LLC now owns 2,206 shares of the business services provider's stock worth $78,000 after purchasing an additional 1,251 shares during the last quarter. 86.76% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on BBSI shares. Wall Street Zen upgraded shares of Barrett Business Services from a "sell" rating to a "hold" rating in a research note on Saturday, June 6th. Weiss Ratings raised Barrett Business Services from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, July 13th. Barrington Research set a $44.00 target price on Barrett Business Services in a report on Thursday, August 6th. Roth Capital downgraded Barrett Business Services from a "buy" rating to a "neutral" rating and cut their price target for the company from $42.00 to $38.00 in a report on Thursday, August 6th. Finally, Citigroup reaffirmed an "outperform" rating on shares of Barrett Business Services in a report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $41.00.

Barrett Business Services Stock Up 0.4%

Shares of Barrett Business Services stock opened at $33.09 on Thursday. The stock has a market capitalization of $802.10 million, a price-to-earnings ratio of 24.33, a price-to-earnings-growth ratio of 1.23 and a beta of 0.94. Barrett Business Services, Inc. has a twelve month low of $25.33 and a twelve month high of $49.65. The company has a 50-day simple moving average of $36.37 and a two-hundred day simple moving average of $32.75.

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

Barrett Business Services Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Stockholders of record on Friday, August 21st will be given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Friday, August 21st. Barrett Business Services's dividend payout ratio is presently 23.53%.

Insiders Place Their Bets

In related news, EVP James R. Potts sold 3,490 shares of the business's stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $38.00, for a total value 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. The trade was a 9.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Anthony Meeker sold 12,000 shares of the company's stock in a transaction dated Thursday, July 2nd. The stock was 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 $1,701,168.25. This represents a 21.07% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 20,779 shares of company stock valued at $786,233. Corporate insiders own 4.80% of the company's stock.

Barrett Business Services Profile

Barrett Business Services, Inc NASDAQ: BBSI is a professional employer organization (PEO) headquartered in Northridge, California. Founded in 1971 by Barrett K. Levesque, the company provides comprehensive human resources outsourcing solutions to small and mid-sized businesses. Through its consultative model, Barrett Business Services helps clients streamline administrative processes, mitigate regulatory risk and focus on core operations.

The company's core offerings include payroll administration, employee benefits management, workers' compensation and risk management services.

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