Boyd Group Services (TSE:BYD) Trading Down 10% Following Analyst Downgrade

Shares of Boyd Group Services Inc. (TSE:BYD) were down 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. Approximately 293,809 shares were traded during trading, an increase of 225% from the average session volume of 90,279 shares. The stock had previously closed at C$146.37.

A number of other equities research analysts have also issued reports on the stock. Canadian Imperial Bank of Commerce boosted their price target on shares of Boyd Group Services from C$205.00 to C$208.00 in a report on Thursday. Desjardins lowered their price objective on shares of Boyd Group Services from C$240.00 to C$225.00 and set a “buy” rating on the stock in a research report on Thursday. Scotia cut their target price on shares of Boyd Group Services from C$239.00 to C$231.00 and set a “sector outperform” rating on the stock in a research note on Thursday, May 14th. BMO Capital Markets cut their target price on shares of Boyd Group Services from C$200.00 to C$190.00 in a research note on Thursday. Finally, TD increased their target price on Boyd Group Services from C$190.00 to C$200.00 and gave the company a “buy” rating in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating and eleven have given a Buy rating to the stock. According to MarketBeat, Boyd Group Services has a consensus rating of “Buy” and a consensus target price of C$230.00.

Insiders Place Their Bets

In other Boyd Group Services news, Director Robert Berthold Espey bought 500 shares of the company’s stock in a transaction dated Wednesday, May 27th. The shares were bought at an average price of C$150.00 per share, for a total transaction of C$75,000.00. Following the acquisition, the director directly owned 3,350 shares of the company’s stock, valued at approximately C$502,500. This trade represents a 17.54% increase in their ownership of the stock. 0.37% of the stock is currently owned by company insiders.

Key Stories Impacting Boyd Group Services

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 Trading Down 12.5%

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

Boyd Group Services (TSE:BYD) last posted its quarterly earnings results on Wednesday, August 12th. The company reported C$1.14 EPS for the quarter. Boyd Group Services had a net margin of 0.40% and a return on equity of 1.04%. The business had revenue of C$1.44 billion for the quarter. Research analysts expect that Boyd Group Services Inc. will post 7.1452646 EPS 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 .