GMS (NYSE:GMS) Downgraded by Zacks Investment Research

GMS (NYSE:GMS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Friday, Zacks.com reports.

According to Zacks, “GMS Inc. is a distributor of wallboard and suspended ceilings systems. The company’s product consists of wallboard, suspended ceilings systems or ceilings and complementary interior construction products in commercial and residential buildings. GMS Inc. is based in Tucker, United States. “

Several other research analysts also recently issued reports on GMS. Stephens set a $34.00 price target on shares of GMS and gave the stock a “buy” rating in a research report on Friday, August 30th. Royal Bank of Canada set a $30.00 price target on shares of GMS and gave the stock a “buy” rating in a research report on Friday, August 30th. Seaport Global Securities reiterated a “buy” rating and set a $33.00 price target (up previously from $28.00) on shares of GMS in a research report on Friday, August 30th. They noted that the move was a valuation call. Barclays upped their price target on shares of GMS from $26.00 to $33.00 and gave the stock an “overweight” rating in a research report on Wednesday, September 4th. Finally, Raymond James set a $31.00 price target on shares of GMS and gave the stock a “buy” rating in a research report on Friday, August 30th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and seven have issued a buy rating to the company’s stock. GMS presently has a consensus rating of “Buy” and an average target price of $29.90.

Shares of NYSE:GMS traded down $0.03 on Friday, hitting $27.75. The stock had a trading volume of 1,141,300 shares, compared to its average volume of 613,138. GMS has a twelve month low of $13.61 and a twelve month high of $30.54. The company has a debt-to-equity ratio of 1.80, a quick ratio of 1.46 and a current ratio of 2.29. The firm’s 50 day moving average price is $24.12 and its 200-day moving average price is $19.90. The company has a market capitalization of $1.15 billion, a price-to-earnings ratio of 9.91, a price-to-earnings-growth ratio of 1.27 and a beta of 2.18.

GMS (NYSE:GMS) last issued its quarterly earnings results on Thursday, August 29th. The company reported $0.89 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.84 by $0.05. The business had revenue of $847.20 million for the quarter, compared to the consensus estimate of $837.65 million. GMS had a net margin of 2.27% and a return on equity of 18.99%. The firm’s quarterly revenue was up 8.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.82 EPS. As a group, sell-side analysts predict that GMS will post 3.1 EPS for the current year.

In other GMS news, major shareholder Investors Fund V. Lp Aea sold 6,825,058 shares of the business’s stock in a transaction dated Monday, September 9th. The stock was sold at an average price of $26.93, for a total transaction of $183,798,811.94. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CEO G Michael Callahan, Jr. sold 28,950 shares of the business’s stock in a transaction dated Wednesday, July 3rd. The stock was sold at an average price of $22.61, for a total value of $654,559.50. Following the sale, the chief executive officer now directly owns 428,314 shares of the company’s stock, valued at $9,684,179.54. The disclosure for this sale can be found here. Insiders own 5.10% of the company’s stock.

Several hedge funds have recently made changes to their positions in GMS. Dimensional Fund Advisors LP increased its stake in shares of GMS by 48.3% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,314,769 shares of the company’s stock valued at $19,538,000 after acquiring an additional 428,497 shares during the last quarter. BNP Paribas Arbitrage SA increased its stake in shares of GMS by 54.6% in the 1st quarter. BNP Paribas Arbitrage SA now owns 16,718 shares of the company’s stock valued at $253,000 after acquiring an additional 5,905 shares during the last quarter. IndexIQ Advisors LLC increased its stake in shares of GMS by 51.6% in the 1st quarter. IndexIQ Advisors LLC now owns 104,252 shares of the company’s stock valued at $1,576,000 after acquiring an additional 35,475 shares during the last quarter. Frontier Capital Management Co. LLC increased its stake in shares of GMS by 52.7% in the 1st quarter. Frontier Capital Management Co. LLC now owns 693,259 shares of the company’s stock valued at $10,482,000 after acquiring an additional 239,118 shares during the last quarter. Finally, LSV Asset Management increased its stake in shares of GMS by 40.2% in the 1st quarter. LSV Asset Management now owns 146,700 shares of the company’s stock valued at $2,218,000 after acquiring an additional 42,100 shares during the last quarter. 72.08% of the stock is owned by institutional investors.

GMS Company Profile

GMS Inc distributes wallboards, suspended ceilings systems, and related construction products in the United States and Canada. The company offers wallboard products; and 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.

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