GMS (NYSE:GMS) Issues Quarterly Earnings Results

Key Points

• GMS reported quarterly earnings of $1.76 EPS, falling short of the consensus estimate of $1.77 EPS by $0.01, with a total revenue of $1.41 billion.
• The company's revenue declined by 2.4% compared to the same quarter last year, while its net margin stood at 2.09% and return on equity at 16.97%.
• Insider trading included sales by COO George T. Hendren and major shareholder Coliseum Capital Management, collectively selling over 59,000 shares valued at approximately $6.59 million.

GMS (NYSE:GMS - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $1.76 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.77 by ($0.01), Zacks reports. GMS had a return on equity of 16.36% and a net margin of 1.86%.The business had revenue of $1.41 billion during the quarter, compared to analysts' expectations of $1.40 billion. During the same quarter in the previous year, the company posted $1.93 EPS. The company's quarterly revenue was down 2.4% on a year-over-year basis.

GMS Stock Performance

Shares of GMS stock traded up $0.09 during trading hours on Monday, hitting $109.94. The company's stock had a trading volume of 1,034,574 shares, compared to its average volume of 845,350. The company has a 50 day moving average of $108.73 and a 200 day moving average of $87.08. The stock has a market cap of $4.20 billion, a PE ratio of 18.35 and a beta of 1.76. The company has a current ratio of 2.11, a quick ratio of 1.31 and a debt-to-equity ratio of 0.87. GMS has a 12-month low of $65.77 and a 12-month high of $110.28.

Insider Buying and Selling at GMS

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

Institutional Trading of GMS

A number of hedge funds have recently added to or reduced their stakes in GMS. EverSource Wealth Advisors LLC boosted its holdings in GMS by 271.2% during the second quarter. EverSource Wealth Advisors LLC now owns 245 shares of the company's stock worth $27,000 after buying an additional 179 shares in the last quarter. Strs Ohio purchased a new position in GMS during the first quarter valued at $73,000. Cerity Partners LLC purchased a new position in GMS during the second quarter valued at $210,000. Tidal Investments LLC purchased a new position in GMS during the second quarter valued at $227,000. Finally, Corient Private Wealth LLC purchased a new position in GMS during the second quarter valued at $380,000. 95.28% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on GMS. DA Davidson lifted their price objective on shares of GMS from $95.20 to $110.00 and gave the company a "neutral" rating in a research report on Tuesday, July 1st. Stephens cut shares of GMS from a "strong-buy" rating to a "hold" rating and set a $95.00 price target on the stock. in a research report on Friday, June 27th. Barclays boosted their price objective on shares of GMS from $95.00 to $110.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 1st. Raymond James Financial cut shares of GMS from an "outperform" rating to a "market perform" rating in a research report on Wednesday, June 25th. Finally, Truist Financial boosted their price objective on shares of GMS from $105.00 to $110.00 and gave the company a "hold" rating in a research report on Tuesday, July 1st. Nine investment analysts have rated the stock with a Hold rating, According to MarketBeat, GMS currently has an average rating of "Hold" and a consensus target price of $101.11.

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.