Boyd Group Services (NYSE:BGSI) Shares Gap Down Following Weak Earnings

Key Points

• Shares plunged after a disappointing earnings report: Boyd Group earned $0.68 per share, missing the $0.92 analyst consensus, and last traded at $76.84 after closing at $88.50 the prior session.
• The company paid a quarterly dividend of C$0.16 per share, equivalent to an annualized yield of 0.8%; its reported payout ratio was 95.65%.
• Analysts’ consensus rating was “Moderate Buy”, with a consensus price target of $138.50.

Boyd Group Services Inc. (NYSE:BGSI - Get Free Report) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $88.50, but opened at $78.50. Boyd Group Services shares last traded at $76.8360, with a volume of 17,421 shares.

The company reported $0.68 earnings per share for the quarter, missing analysts' consensus estimates of $0.92 by ($0.24). Boyd Group Services had a net margin of 0.25% and a return on equity of 5.21%.

Boyd Group Services Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 28th. Shareholders of record on Wednesday, September 30th were paid a dividend of C$0.16 per share. This represents a $0.62 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Wednesday, September 30th. Boyd Group Services's payout ratio is 95.65%.

Analysts Set New Price Targets

Several research firms recently commented on BGSI. Mizuho began coverage on shares of Boyd Group Services in a report on Friday, September 18th. They set an "outperform" rating and a $120.00 price target for the company. Weiss Ratings upgraded shares of Boyd Group Services from a "sell (d)" rating to a "sell (d+)" rating in a research note on Thursday, October 29th. Finally, Zacks Research upgraded shares of Boyd Group Services from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Boyd Group Services presently has a consensus rating of "Moderate Buy" and a consensus target price of $138.50.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Assetmark Inc. lifted its holdings in shares of Boyd Group Services by 23.5% during the 1st quarter. Assetmark Inc. now owns 457 shares of the company's stock valued at $58,000 after buying an additional 87 shares during the last quarter. State of Wyoming acquired a new position in Boyd Group Services in the third quarter worth approximately $65,000. Nykredit A S acquired a new position in Boyd Group Services in the second quarter worth approximately $95,000. Deutsche Bank AG bought a new position in Boyd Group Services during the second quarter valued at approximately $188,000. Finally, Amundi bought a new position in Boyd Group Services during the first quarter valued at approximately $277,000. 0.17% of the stock is owned by institutional investors and hedge funds.

Boyd Group Services Price Performance

The company has a debt-to-equity ratio of 0.58, a current ratio of 0.60 and a quick ratio of 0.46. The stock has a market capitalization of $2.15 billion, a price-to-earnings ratio of 168.49 and a beta of 0.68. The stock's 50 day simple moving average is $82.80 and its 200-day simple moving average is $112.51.

About Boyd Group Services

Boyd Group Services Inc. operates collision repair and automotive glass businesses in the United States and Canada. Its services include vehicle collision repairs, paint and refinishing, auto glass repair and replacement, and related services. The company serves customers through brands including Gerber Collision & Glass in the United States and Boyd Autobody & Glass in Canada. Its repair centers work with vehicle owners, insurers and fleet operators. Boyd Group traces its roots to an auto body repair business established in Winnipeg, Manitoba, in 1990.

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