BILL (NYSE:BILL) Shares Gap Up on Better-Than-Expected Earnings

BILL Holdings, Inc. (NYSE:BILL)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $41.63, but opened at $44.82. BILL shares last traded at $47.06, with a volume of 3,874,797 shares traded.

The company reported $0.53 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.12. BILL had a return on equity of 1.21% and a net margin of 2.70%.The firm had revenue of $383.35 million for the quarter, compared to the consensus estimate of $376.43 million. During the same quarter last year, the business posted $0.57 EPS. The company’s revenue was up 11.5% compared to the same quarter last year. BILL has set its FY 2026 guidance at 2.000-2.200 EPS. Q1 2026 guidance at 0.490-0.520 EPS.

BILL declared that its Board of Directors has approved a share buyback plan on Wednesday, August 27th that permits the company to repurchase $300.00 million in shares. This repurchase authorization permits the company to purchase up to 7.2% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on BILL shares. Deutsche Bank Aktiengesellschaft started coverage on BILL in a research report on Thursday, July 17th. They set a “hold” rating and a $49.00 target price for the company. KeyCorp reduced their target price on BILL from $70.00 to $60.00 and set an “overweight” rating for the company in a research note on Wednesday, April 30th. Needham & Company LLC reiterated a “buy” rating and set a $75.00 price target on shares of BILL in a research note on Thursday. Canaccord Genuity Group reiterated a “buy” rating and set a $75.00 price target on shares of BILL in a research note on Thursday. Finally, Piper Sandler downgraded BILL from an “overweight” rating to a “neutral” rating and cut their price target for the company from $70.00 to $50.00 in a research note on Thursday. Ten research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $59.85.

Insiders Place Their Bets

In other BILL news, SVP Germaine Cota sold 1,718 shares of the business’s stock in a transaction on Friday, May 30th. The shares were sold at an average price of $42.55, for a total transaction of $73,100.90. Following the sale, the senior vice president owned 9,512 shares of the company’s stock, valued at $404,735.60. The trade was a 15.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Rajesh A. Aji sold 1,780 shares of the business’s stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $45.25, for a total transaction of $80,545.00. Following the sale, the insider directly owned 9,298 shares in the company, valued at $420,734.50. The trade was a 16.07% decrease in their position. The disclosure for this sale can be found here. Insiders own 4.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. CoreCap Advisors LLC purchased a new position in shares of BILL during the 4th quarter valued at $30,000. Fifth Third Bancorp grew its position in shares of BILL by 134.1% during the 1st quarter. Fifth Third Bancorp now owns 749 shares of the company’s stock valued at $34,000 after purchasing an additional 429 shares in the last quarter. Quarry LP grew its position in shares of BILL by 85.9% during the 1st quarter. Quarry LP now owns 766 shares of the company’s stock valued at $35,000 after purchasing an additional 354 shares in the last quarter. Brooklyn Investment Group grew its position in shares of BILL by 73.6% during the 1st quarter. Brooklyn Investment Group now owns 889 shares of the company’s stock valued at $41,000 after purchasing an additional 377 shares in the last quarter. Finally, Farther Finance Advisors LLC grew its position in shares of BILL by 2,189.1% during the 1st quarter. Farther Finance Advisors LLC now owns 1,053 shares of the company’s stock valued at $48,000 after purchasing an additional 1,007 shares in the last quarter. 97.99% of the stock is currently owned by hedge funds and other institutional investors.

BILL Price Performance

The business’s 50-day moving average price is $44.02 and its 200 day moving average price is $45.92. The stock has a market capitalization of $4.88 billion, a PE ratio of -393.72, a price-to-earnings-growth ratio of 9.02 and a beta of 1.35. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.69 and a current ratio of 1.69.

About BILL

BILL Holdings, Inc provides financial automation software for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency.