Boyd Group Services (TSE:BYD) Stock Price Down 10% After Analyst Downgrade

Shares of Boyd Group Services Inc. (TSE:BYD) dropped 10% during trading on Thursday after Scotiabank lowered their price target on the stock from C$219.00 to C$210.00. Scotiabank currently has a sector outperform rating on the stock. Boyd Group Services traded as low as C$131.24 and last traded at C$131.70. 293,809 shares changed hands during mid-day trading, an increase of 225% from the average session volume of 90,279 shares. The stock had previously closed at C$146.37.

Other research analysts have also issued reports about the company. Royal Bank Of Canada lowered their price target on Boyd Group Services from C$245.00 to C$236.00 and set an “outperform” rating on the stock in a report on Thursday. Jefferies Financial Group lowered their target price on shares of Boyd Group Services from C$250.00 to C$225.00 in a research note on Thursday. BMO Capital Markets dropped their price target on shares of Boyd Group Services from C$200.00 to C$190.00 in a research report on Thursday. TD upped their price target on shares of Boyd Group Services from C$190.00 to C$200.00 and gave the stock a “buy” rating in a research note on Thursday. Finally, Stifel Nicolaus decreased their price objective on shares of Boyd Group Services from C$255.00 to C$205.00 and set a “buy” rating for the company in a report on Thursday, May 14th. One investment analyst has rated the stock with a Strong Buy rating and eleven have assigned a Buy rating to the stock. According to MarketBeat.com, Boyd Group Services has an average rating of “Buy” and a consensus target price of C$230.00.

Insiders Place Their Bets

In other news, Director Robert Berthold Espey bought 500 shares of the stock in a transaction that occurred on Wednesday, May 27th. The shares were purchased at an average cost of C$150.00 per share, with a total value of C$75,000.00. Following the completion of the acquisition, the director directly owned 3,350 shares in the company, valued at approximately C$502,500. The trade was a 17.54% increase in their ownership of the stock. 0.37% of the stock is owned by corporate insiders.

More Boyd Group Services News

Here are the key news stories impacting Boyd Group Services this week:

• Positive Sentiment: Several analysts raised their targets and maintained bullish ratings. ATB Cormark increased its target to C$250 and assigned an “outperform” rating; National Bank raised its target to C$270 and also rated the shares “outperform”; TD raised its target to C$200 with a “buy” rating; and CIBC increased its target to C$208. BayStreet analyst ratings
• Neutral Sentiment: Despite reducing their targets, RBC, Scotiabank, Desjardins and Jefferies remained positive, with “outperform,” “sector outperform” or “buy” ratings. Their revised targets range from C$210 to C$236, suggesting analysts still see substantial longer-term upside. BayStreet analyst ratings
• Negative Sentiment: Four firms lowered their targets, including Desjardins to C$225, Jefferies to C$225, RBC to C$236 and Scotiabank to C$210; BMO also cut its target to C$190. The reductions indicate some analysts are becoming more cautious about earnings growth or valuation, even though their ratings remain favorable. TickerReport analyst ratings
• Negative Sentiment: The quarterly earnings release highlighted weak bottom-line profitability: EPS was C$1.14, with a 0.40% net margin and 1.04% return on equity. These figures may have disappointed investors and help explain the sharp selling pressure following the report. Boyd Group Services earnings report

Boyd Group Services Price Performance

The company has a debt-to-equity ratio of 119.31, a quick ratio of 0.30 and a current ratio of 0.60. The company’s 50 day moving average price is C$139.86 and its 200-day moving average price is C$172.90. The company has a market cap of C$3.57 billion, a price-to-earnings ratio of 194.11, a PEG ratio of -56.72 and a beta of 1.02.

Boyd Group Services (TSE:BYD) last issued its earnings results on Wednesday, August 12th. The company reported C$1.14 earnings per share for the quarter. The firm had revenue of C$1.44 billion during the quarter. Boyd Group Services had a net margin of 0.40% and a return on equity of 1.04%. On average, equities research analysts forecast that Boyd Group Services Inc. will post 7.1452646 earnings per share for the current fiscal year.

About Boyd Group Services

Boyd Group Services Inc is a Canadian corporation and controls The Boyd Group Inc and its subsidiaries. Boyd Group Services Inc shares trade on the Toronto Stock Exchange (TSX) under the symbol BYD.TO and the New York Stock Exchange (NYSE) under the symbol BGSI. For more information on The Boyd Group Inc or Boyd Group Services Inc, please visit our website at https://www.boydgroup.com .