Barrett Business Services (NASDAQ:BBSI) Shares Break Above Two Hundred Day Moving Average After Earnings Miss

Key Points

• Shares rose above their 200-day moving average, trading as high as $33.68 and last at $33.10, above the $32.94 average.
• Quarterly results fell short of estimates: EPS was $0.67 versus $0.69 expected, while revenue of $334.06 million missed the $335.89 million consensus. Revenue nevertheless grew 5% year over year, and the company declared a dividend.
• Analysts’ average rating is Moderate Buy, with a consensus price target of $41.00.

Barrett Business Services, Inc. (NASDAQ:BBSI - Get Free Report)'s share price passed above its 200-day moving average during trading on Wednesday after the company announced better than expected quarterly earnings. The stock has a 200-day moving average of $32.94 and traded as high as $33.68. Barrett Business Services shares last traded at $33.10, with a volume of 290,714 shares traded.

The business services provider reported $0.67 EPS for the quarter, missing the consensus estimate of $0.69 by ($0.02). The firm had revenue of $334.06 million for the quarter, compared to analyst estimates of $335.89 million. Barrett Business Services had a return on equity of 20.95% and a net margin of 2.77%.

Trending Headlines about Barrett Business Services

Here are the key news stories impacting Barrett Business Services this week:

• Positive Sentiment: Revenue rose 5% year over year to $334.1 million, and gross billings increased 3% to $2.40 billion. BBSI also declared a dividend, providing a shareholder return. BBSI Reports Third Quarter 2026 Financial Results Barrett Business Services Reports Third-Quarter Results, Declares Dividend
• Neutral Sentiment: BBSI opened a Pittsburgh-area branch in Canonsburg, Pennsylvania, expanding its local presence; the near-term financial impact was not specified. BBSI Opens Pittsburgh Branch
• Negative Sentiment: Revenue of $334.1 million came in below the $335.9 million estimate. One report puts EPS at $0.67, short of the $0.69 consensus; Zacks separately reported EPS of $0.69, in line with estimates, but below $0.79 a year earlier. This mixed reporting aside, the revenue miss and lower year-over-year earnings are potential pressure points. Q3 Revenue Compared With Estimate Zacks Q3 Earnings Report

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on BBSI. Barrington Research set a $44.00 price target on shares of Barrett Business Services in a research report on Thursday, August 6th. Weiss Ratings restated a "hold (c)" rating on shares of Barrett Business Services in a research note on Friday, October 9th. Citigroup reaffirmed an "outperform" rating on shares of Barrett Business Services in a research report on Thursday, August 6th. Zacks Research upgraded Barrett Business Services from a "strong sell" rating to a "hold" rating in a research note on Monday, October 5th. Finally, Roth Capital lowered Barrett Business Services from a "buy" rating to a "neutral" rating and lowered their target price for the company from $42.00 to $38.00 in a research note on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $41.00.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in shares of Barrett Business Services during the 2nd quarter valued at $72,793,000. Polar Asset Management Partners Inc. acquired a new position in shares of Barrett Business Services during the first quarter worth approximately $8,316,000. Bank of America Corp DE bought a new stake in Barrett Business Services in the 2nd quarter valued at $2,333,000. GSA Capital Partners LLP bought a new stake in shares of Barrett Business Services in the second quarter valued at about $2,401,000. Finally, Sei Investments Co. increased its position in shares of Barrett Business Services by 102.5% during the first quarter. Sei Investments Co. now owns 168,356 shares of the business services provider's stock valued at $4,913,000 after purchasing an additional 85,230 shares during the period. 86.76% of the stock is owned by institutional investors and hedge funds.

Barrett Business Services Stock Performance

The company has a market cap of $802.34 million, a price-to-earnings ratio of 24.34, a PEG ratio of 1.22 and a beta of 0.93. The business's 50 day moving average price is $32.57 and its 200-day moving average price is $32.94.

Barrett Business Services Company Profile

Barrett Business Services, Inc (BBSI) provides business management solutions for small and mid-sized companies in the United States. Its services are designed to help clients manage administrative responsibilities and improve operational efficiency while allowing them to focus on their core businesses.

The company operates primarily through a professional employer organization (PEO) model, providing payroll administration, human resources support, employee benefits administration, workers' compensation services, and risk management.

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