GMS (NYSE:GMS) Downgraded by Zacks Investment Research

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GMS (NYSE:GMS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors 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 equities analysts have also weighed in on GMS. ValuEngine lowered shares of GMS from a “hold” rating to a “sell” rating in a research report on Friday, September 6th. Royal Bank of Canada set a $30.00 price objective on shares of GMS and gave the company a “buy” rating in a research report on Friday, August 30th. Raymond James set a $31.00 price objective on shares of GMS and gave the company a “buy” rating in a research report on Friday, August 30th. Seaport Global Securities reaffirmed a “buy” rating and set a $33.00 price objective (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. Finally, Nomura reaffirmed a “neutral” rating and set a $20.00 price objective (down previously from $27.00) on shares of GMS in a research report on Thursday, May 16th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and seven have given a buy rating to the company. GMS has an average rating of “Buy” and an average price target of $29.90.

Shares of GMS stock traded down $0.03 during trading on Friday, hitting $27.75. 1,141,300 shares of the company were exchanged, compared to its average volume of 613,138. 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 has a market capitalization of $1.15 billion, a price-to-earnings ratio of 9.91, a P/E/G ratio of 1.27 and a beta of 2.18. The business’s 50-day simple moving average is $24.12 and its 200 day simple moving average is $19.90. GMS has a twelve month low of $13.61 and a twelve month high of $30.54.

GMS (NYSE:GMS) last posted its quarterly earnings results on Thursday, August 29th. The company reported $0.89 EPS for the quarter, topping the consensus estimate of $0.84 by $0.05. The business had revenue of $847.20 million during the quarter, compared to analysts’ expectations 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% compared to the same quarter last year. During the same period last year, the company posted $0.82 earnings per share. On average, equities analysts forecast that GMS will post 3.1 earnings per share for the current fiscal year.

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

Large investors have recently added to or reduced their stakes in the company. Royce & Associates LP bought a new position in shares of GMS in the first quarter valued at approximately $36,000. Public Employees Retirement System of Ohio raised its position in shares of GMS by 17.1% in the second quarter. Public Employees Retirement System of Ohio now owns 3,174 shares of the company’s stock valued at $70,000 after purchasing an additional 463 shares during the period. Glen Harbor Capital Management LLC bought a new position in shares of GMS in the second quarter valued at approximately $70,000. Bank of Montreal Can raised its position in shares of GMS by 419.9% in the second quarter. Bank of Montreal Can now owns 3,296 shares of the company’s stock valued at $73,000 after purchasing an additional 2,662 shares during the period. Finally, Riverhead Capital Management LLC bought a new position in shares of GMS in the second quarter valued at approximately $77,000. 72.08% of the stock is currently 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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