Barrett Business Services (NASDAQ:BBSI) Shares Gap Down on Analyst Downgrade

Barrett Business Services, Inc. (NASDAQ:BBSI) gapped down before the market opened on Thursday after Barrington Research lowered their price target on the stock from $46.00 to $41.00. The stock had previously closed at $31.47, but opened at $28.30. Barrington Research currently has an outperform rating on the stock. Barrett Business Services shares last traded at $26.6690, with a volume of 148,885 shares changing hands.

BBSI has been the topic of a number of other research reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Barrett Business Services in a report on Monday, December 29th. Roth Mkm reduced their price target on shares of Barrett Business Services from $54.00 to $42.00 and set a “buy” rating for the company in a research report on Thursday. Finally, CJS Securities raised shares of Barrett Business Services to a “strong-buy” rating in a report on Thursday, December 11th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Buy” and an average target price of $41.50.

Key Headlines Impacting Barrett Business Services

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

• Positive Sentiment: Q4 and full‑year results showed strength (record sales volume and solid full‑year metrics); EPS was roughly in line with consensus, supporting the upbeat tone from management. BBSI Reports Strong Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Analysts trimmed price targets but kept bullish ratings: Barrington lowered its PT to $41 (outperform) and Roth MKM lowered its PT to $42 (buy) — both still imply ~45–50% upside vs. current levels, which supports further upside potential. Benzinga PT Coverage Roth MKM Price Target Note
• Positive Sentiment: The company declared a quarterly dividend of $0.08 (ex‑dividend March 13), adding a modest income component that can support investor demand.
• Neutral Sentiment: Analyst and media write‑ups digging into key metrics (e.g., Zacks review) give investors detail on what drove the quarter but don’t substantially change the verdict — useful for judging sustainability. Compared to Estimates, Barrett (BBSI) Q4 Earnings: A Look at Key Metrics
• Neutral Sentiment: Some short‑interest data feeds show inconsistent/zero values for late‑February (likely reporting errors); treat those data points cautiously until exchanges reconcile filings.
• Negative Sentiment: Short interest reportedly rose earlier in February to ~717,409 shares (about 2.9% of float) with a short‑interest ratio ~3.3 days, signaling increased bearish bets that can add selling pressure or volatility.
• Negative Sentiment: At least one headline highlighted that Barrett missed Q4 sales expectations, a reminder that revenue execution is under scrutiny and could cap multiple expansion until clear momentum resumes. Barrett (NASDAQ:BBSI) Misses Q4 CY2025 Sales Expectations

Hedge Funds Weigh In On Barrett Business Services

Large investors have recently bought and sold shares of the stock. Tripletail Wealth Management LLC bought a new position in shares of Barrett Business Services in the third quarter worth approximately $34,000. Kestra Advisory Services LLC purchased a new stake in Barrett Business Services during the 4th quarter valued at $39,000. Farther Finance Advisors LLC grew its holdings in Barrett Business Services by 1,388.3% in the 3rd quarter. Farther Finance Advisors LLC now owns 893 shares of the business services provider’s stock worth $40,000 after acquiring an additional 833 shares during the last quarter. Bard Associates Inc. bought a new stake in Barrett Business Services in the 4th quarter worth $50,000. Finally, AlphaQuest LLC purchased a new position in shares of Barrett Business Services in the third quarter valued at about $54,000. 86.76% of the stock is owned by hedge funds and other institutional investors.

Barrett Business Services Trading Up 3.5%

The company has a debt-to-equity ratio of 0.31, a current ratio of 1.27 and a quick ratio of 1.27. The firm’s 50 day moving average price is $35.75 and its 200 day moving average price is $39.64. The stock has a market capitalization of $711.47 million, a P/E ratio of 13.29, a P/E/G ratio of 0.66 and a beta of 0.99.

Barrett Business Services (NASDAQ:BBSI) last announced its quarterly earnings results on Wednesday, February 25th. The business services provider reported $0.64 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.64. The company had revenue of $2.40 billion for the quarter, compared to the consensus estimate of $323.43 million. Barrett Business Services had a return on equity of 24.05% and a net margin of 4.39%.Barrett Business Services’s revenue was up 5.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.63 EPS. As a group, equities research analysts expect that Barrett Business Services, Inc. will post 2 earnings per share for the current fiscal year.

Barrett Business Services Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 27th. Shareholders of record on Friday, March 13th will be given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Friday, March 13th. Barrett Business Services’s payout ratio is presently 15.31%.

About Barrett Business Services

Barrett Business Services, Inc (NASDAQ: BBSI) is a professional employer organization (PEO) headquartered in Northridge, California. Founded in 1971 by Barrett K. Levesque, the company provides comprehensive human resources outsourcing solutions to small and mid-sized businesses. Through its consultative model, Barrett Business Services helps clients streamline administrative processes, mitigate regulatory risk and focus on core operations.

The company’s core offerings include payroll administration, employee benefits management, workers’ compensation and risk management services.