Sidoti Cuts Earnings Estimates for Barrett Business Services

Barrett Business Services, Inc. (NASDAQ:BBSI) – Analysts at Sidoti cut their Q2 2026 earnings per share estimates for Barrett Business Services in a research note issued on Thursday, May 7th. Sidoti analyst M. Riddick now forecasts that the business services provider will post earnings of $0.56 per share for the quarter, down from their prior estimate of $0.61. The consensus estimate for Barrett Business Services’ current full-year earnings is $1.88 per share. Sidoti also issued estimates for Barrett Business Services’ Q3 2026 earnings at $0.78 EPS.

A number of other equities research analysts also recently issued reports on BBSI. Zacks Research raised Barrett Business Services from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 28th. Barrington Research reissued an “outperform” rating and set a $41.00 price target on shares of Barrett Business Services in a research report on Monday, April 27th. Finally, Roth Mkm lowered their price target on Barrett Business Services from $54.00 to $42.00 and set a “buy” rating for the company in a research report on Thursday, February 26th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $41.50.

Barrett Business Services Trading Up 1.6%

BBSI stock opened at $29.90 on Friday. The stock has a 50-day moving average price of $29.15 and a two-hundred day moving average price of $33.97. Barrett Business Services has a 12-month low of $25.33 and a 12-month high of $49.65. The company has a market cap of $734.34 million, a PE ratio of 19.42, a price-to-earnings-growth ratio of 0.98 and a beta of 0.97.

Barrett Business Services (NASDAQ:BBSI) last posted its quarterly earnings results on Wednesday, May 6th. The business services provider reported ($0.13) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.15) by $0.02. Barrett Business Services had a return on equity of 22.16% and a net margin of 3.24%.The firm had revenue of $307.01 million during the quarter, compared to the consensus estimate of $306.68 million. During the same quarter in the previous year, the business earned ($0.04) earnings per share. The firm’s quarterly revenue was up 4.9% compared to the same quarter last year.

Institutional Investors Weigh In On Barrett Business Services

Institutional investors and hedge funds have recently modified their holdings of the stock. Farther Finance Advisors LLC boosted its position in shares of Barrett Business Services by 1,388.3% in the third quarter. Farther Finance Advisors LLC now owns 893 shares of the business services provider’s stock worth $40,000 after buying an additional 833 shares during the period. Kestra Advisory Services LLC acquired a new position in shares of Barrett Business Services in the fourth quarter worth about $39,000. AlphaQuest LLC acquired a new position in shares of Barrett Business Services in the third quarter worth about $54,000. Bard Associates Inc. acquired a new position in shares of Barrett Business Services in the fourth quarter worth about $50,000. Finally, State of Alaska Department of Revenue acquired a new position in shares of Barrett Business Services in the third quarter worth about $66,000. Hedge funds and other institutional investors own 86.76% of the company’s stock.

Insider Activity

In other news, EVP James R. Potts sold 1,803 shares of the company’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $28.68, for a total value of $51,710.04. Following the completion of the sale, the executive vice president owned 33,837 shares of the company’s stock, valued at $970,445.16. This represents a 5.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Gary Kramer bought 8,370 shares of the firm’s stock in a transaction dated Friday, March 13th. The stock was bought at an average cost of $26.89 per share, with a total value of $225,069.30. Following the transaction, the chief executive officer directly owned 328,801 shares of the company’s stock, valued at approximately $8,841,458.89. This trade represents a 2.61% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 4.10% of the stock is owned by corporate insiders.

Barrett Business Services Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, June 5th. Stockholders of record on Friday, May 22nd will be given a $0.08 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $0.32 annualized dividend and a dividend yield of 1.1%. Barrett Business Services’s dividend payout ratio is presently 15.31%.

Trending Headlines about Barrett Business Services

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

• Positive Sentiment: Q1 results beat expectations: revenue rose ~5% to $307.0M, gross billings grew ~3% to $2.16B, and EPS of ($0.13) beat consensus by $0.02 — an outcome investors typically reward as evidence of execution and top-line resilience. BBSI Reports First-Quarter 2026 Financial Results
• Positive Sentiment: Company reiterated 2026 outlook for 3–5% gross billings growth and cited workers’ compensation pricing momentum — a forward-looking metric that supports revenue and margin recovery expectations. BBSI reiterates 2026 outlook for 3-5% gross billings growth while highlighting workers’ comp pricing momentum
• Positive Sentiment: Board declared a quarterly cash dividend of $0.08 per share (payable June 5; ex-dividend May 22), which can attract income-oriented shareholders and provide price support.
• Neutral Sentiment: Full earnings and conference-call transcripts are available (Fool / Seeking Alpha / Zacks), offering details on client trends, pricing actions and expense dynamics for investors doing deeper diligence. Barrett (BBSI) Q1 2026 Earnings Transcript
• Negative Sentiment: Rising labor costs and higher workers’ comp expenses are pressuring margins; management acknowledged these headwinds even as it reiterated guidance — a risk to near-term profitability if pricing and productivity don’t offset cost inflation. BBSI reaffirms 2026 growth outlook as labor costs climb
• Negative Sentiment: EPS remains a loss year-over-year (Q1 EPS of ($0.13) vs. ($0.04) a year ago), highlighting that profitability recovery is still in progress and giving investors reason for caution despite the beat. Barrett Business Services (BBSI) Reports Q1 Loss, Beats Revenue Estimates

Barrett Business Services Company Profile

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.