Barrett Business Services (NASDAQ:BBSI) Shares Gap Down Following Weak Earnings

Posted by Stanley Muller on Aug 6th, 2026

Barrett Business Services, Inc. (NASDAQ:BBSI – Get Free Report)’s stock price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $40.11, but opened at $35.03. Barrett Business Services shares last traded at $33.3740, with a volume of 68,669 shares traded.

The business services provider reported $0.52 earnings per share for the quarter, missing analysts’ consensus estimates of $0.56 by ($0.04). Barrett Business Services had a return on equity of 22.89% and a net margin of 3.24%.The business had revenue of $319.27 million during the quarter, compared to analyst estimates of $321.55 million.

Barrett Business Services Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Stockholders of record on Friday, August 21st will be paid a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, August 21st. Barrett Business Services’s dividend payout ratio is presently 20.78%.

Barrett Business Services News Roundup

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

Positive Sentiment: Second-quarter revenue rose 4% year over year to $319.3 million, broadly in line with expectations, while gross billings increased 3% to $2.29 billion. BBSI Reports Second Quarter 2026 Financial Results
Positive Sentiment: BBSI declared a quarterly dividend of $0.08 per share, payable September 4 to shareholders of record on August 21. The annualized payout is approximately $0.32 per share, providing an indicated yield of about 0.8%.
Positive Sentiment: Brokerages have set an average price target of $41.50, suggesting analysts see potential upside relative to recent trading levels. Brokerages Set Barrett Business Services Target Price at $41.50
Neutral Sentiment: The earnings call and follow-up coverage are providing additional detail on operating trends and management’s outlook, which investors will assess for evidence that growth can accelerate. BBSI Q2 2026 Earnings Call Transcript
Negative Sentiment: Adjusted earnings were $0.52 per share, below the $0.56 consensus estimate and down from $0.70 a year earlier. Revenue of $319.27 million also fell slightly short of the $321.55 million forecast, creating pressure on the stock despite the top-line growth. Barrett Business Services Misses Q2 Earnings and Revenue Estimates

Analyst Ratings Changes

A number of research firms recently issued reports on BBSI. Zacks Research raised shares of Barrett Business Services from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 28th. Wall Street Zen raised shares of Barrett Business Services from a “sell” rating to a “hold” rating in a report on Saturday, June 6th. Weiss Ratings upgraded shares of Barrett Business Services from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, July 13th. Roth Capital cut shares of Barrett Business Services from a “buy” rating to a “neutral” rating and cut their target price for the stock from $42.00 to $38.00 in a research note on Thursday. Finally, Barrington Research restated an “outperform” rating and set a $41.00 price target on shares of Barrett Business Services in a research report on Monday, April 27th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $39.50.

View Our Latest Research Report on BBSI

Insider Activity at Barrett Business Services

In other Barrett Business Services news, Director Anthony Meeker sold 12,000 shares of the company’s stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $37.85, for a total value of $454,200.00. Following the completion of the sale, the director directly owned 44,945 shares in the company, valued at $1,701,168.25. This represents a 21.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP James R. Potts sold 3,490 shares of the firm’s stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $38.00, for a total value of $132,620.00. Following the completion of the sale, the executive vice president directly owned 32,035 shares of the company’s stock, valued at $1,217,330. This trade represents a 9.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 20,779 shares of company stock valued at $786,233. Insiders own 4.80% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Polar Asset Management Partners Inc. acquired a new stake in shares of Barrett Business Services during the 1st quarter worth approximately $8,316,000. Trigran Investments Inc. lifted its holdings in Barrett Business Services by 62.3% in the fourth quarter. Trigran Investments Inc. now owns 648,738 shares of the business services provider’s stock valued at $23,491,000 after acquiring an additional 249,052 shares during the last quarter. Royce & Associates LP grew its position in Barrett Business Services by 31.6% in the fourth quarter. Royce & Associates LP now owns 870,863 shares of the business services provider’s stock worth $31,534,000 after acquiring an additional 208,865 shares during the period. First Trust Advisors LP purchased a new position in Barrett Business Services in the second quarter worth approximately $5,536,000. Finally, Wellington Management Group LLP grew its position in Barrett Business Services by 15.3% in the fourth quarter. Wellington Management Group LLP now owns 821,560 shares of the business services provider’s stock worth $29,749,000 after acquiring an additional 109,069 shares during the period. Institutional investors and hedge funds own 86.76% of the company’s stock.

Barrett Business Services Price Performance

The firm has a 50 day simple moving average of $36.52 and a 200-day simple moving average of $33.13. The company has a market cap of $808.05 million, a price-to-earnings ratio of 21.69, a PEG ratio of 1.33 and a beta of 0.94.

Barrett Business Services Company Profile

(Get Free Report)

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.