TrueBlue (NYSE:TBI) Downgraded by Wall Street Zen to Sell

Key Points

• Wall Street Zen downgraded TrueBlue from “hold” to “sell,” adding to a mixed analyst backdrop that currently leaves the stock with an average “hold” rating and a $5.75 target price.
• TrueBlue posted a narrower-than-expected loss in its latest quarter, reporting EPS of ($0.41) versus an expected ($0.45) and revenue of $398.57 million, slightly above estimates.
• Insiders have been buying shares: CEO Taryn R. Owen and CFO Carl Schweihs both made recent stock purchases, even as the company’s shares traded around $5.63 and remain well below the 12-month high of $7.78.

TrueBlue (NYSE:TBI - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

A number of other equities research analysts also recently issued reports on TBI. Zacks Research raised TrueBlue from a "strong sell" rating to a "hold" rating in a research report on Monday, April 20th. Weiss Ratings raised TrueBlue from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, April 29th. Finally, Robert W. Baird set a $5.50 target price on TrueBlue in a research report on Thursday, February 19th. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $5.75.

TrueBlue Stock Performance

NYSE TBI opened at $5.63 on Friday. The company has a quick ratio of 2.15, a current ratio of 2.09 and a debt-to-equity ratio of 0.29. The company has a market capitalization of $171.03 million, a P/E ratio of -3.16, a P/E/G ratio of 5.37 and a beta of 1.61. TrueBlue has a 12-month low of $3.18 and a 12-month high of $7.78. The firm has a 50-day moving average price of $4.14 and a two-hundred day moving average price of $4.65.

TrueBlue (NYSE:TBI - Get Free Report) last announced its earnings results on Tuesday, May 5th. The business services provider reported ($0.41) EPS for the quarter, topping the consensus estimate of ($0.45) by $0.04. TrueBlue had a negative net margin of 3.25% and a negative return on equity of 7.37%. The company had revenue of $398.57 million for the quarter, compared to analysts' expectations of $390.51 million. Analysts anticipate that TrueBlue will post -0.09 earnings per share for the current year.

Insider Transactions at TrueBlue

In other news, CEO Taryn R. Owen purchased 20,400 shares of TrueBlue stock in a transaction dated Tuesday, February 24th. The shares were bought at an average cost of $3.79 per share, for a total transaction of $77,316.00. Following the completion of the acquisition, the chief executive officer owned 791,807 shares in the company, valued at approximately $3,000,948.53. This trade represents a 2.64% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Carl Schweihs acquired 12,500 shares of the stock in a transaction dated Monday, February 23rd. The stock was purchased at an average cost of $3.72 per share, with a total value of $46,500.00. Following the purchase, the chief financial officer directly owned 289,069 shares of the company's stock, valued at $1,075,336.68. This trade represents a 4.52% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 8.00% of the company's stock.

Hedge Funds Weigh In On TrueBlue

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Fifth Third Bancorp bought a new position in shares of TrueBlue during the first quarter valued at $41,000. Dynamic Technology Lab Private Ltd bought a new stake in shares of TrueBlue in the fourth quarter worth $48,000. Simplex Trading LLC grew its stake in shares of TrueBlue by 56.9% in the fourth quarter. Simplex Trading LLC now owns 11,018 shares of the business services provider's stock worth $50,000 after purchasing an additional 3,995 shares during the last quarter. Balyasny Asset Management L.P. acquired a new stake in TrueBlue in the fourth quarter valued at $53,000. Finally, Jain Global LLC acquired a new stake in TrueBlue in the fourth quarter valued at $58,000. 97.15% of the stock is currently owned by institutional investors and hedge funds.

TrueBlue Company Profile

TrueBlue, Inc is a Tacoma, Washington–based workforce solutions provider specializing in temporary staffing, permanent placement and managed service solutions. Operating through its subsidiaries and brands, TrueBlue connects clients across manufacturing, logistics, retail, construction and public sector markets with skilled professionals for both short-term and long-term engagements. The company's offerings encompass on-demand blue-collar labor, specialized industrial staffing, recruitment process outsourcing (RPO) and contingent workforce management.

TrueBlue's primary service lines include PeopleReady, which supplies general labor for construction, hospitality and event services; PeopleManagement, which focuses on technical and industrial professionals; PeopleScout, a global RPO business offering end-to-end talent acquisition and consulting; and Staff Management | SMX, which delivers seasonal staffing for large-scale events, amusement parks and federal workforce contracts.

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