Bright Horizons Family Solutions Inc. (NYSE:BFAM) has received an average rating of “Hold” from eight ratings firms, according to Bloomberg.com. Among the analysts covering the company, two have recommended selling the stock, four have suggested holding it, and two have assigned a buy recommendation. The average twelve-month target price given by brokerages that have covered the stock in the past year is $84.13.
The opening price of NYSE:BFAM on Thursday was $93.47. Over the past twelve months, Bright Horizons Family Solutions has experienced a low of $54.19 and a high of $98.87. The company’s 50-day moving average stands at $94.05, while its 200-day moving average is $86.66. With a current ratio and quick ratio both at 0.44, and a debt-to-equity ratio of 0.83, the company displays its financial strength appropriately. Additionally, Bright Horizons Family Solutions boasts a market capitalization of $5.41 billion, a price-earnings ratio of 84.21, a price-earnings-growth ratio of 2.43, and a beta value of 1.20.
Recent reports indicate that several institutional investors made changes to their stakes in BFAM recently—some adding while others reducing their positions in the company’s stock portfolio. Eagle Bay Advisors LLC purchased new shares during the second quarter with an approximate value of $26,000 worth in Bright Horizons Family Solutions’ stocks. Daiwa Securities Group Inc., meanwhile increased their stake in BFAM by 184% during Q1 to own approximately 355 shares valued at around $27,000 as they purchased an additional 230 shares during that quarter alone.
The second quarter also saw Benjamin Edwards Inc., managing to lift its stake in Bright Horizons Family Solutions by an impressive 141% amounting to around $28,000 worth of an additional 177 shares. Signaturefd LLC took a different approach and increased its position by 60.7% during Q2, owning about 323 shares valued at $30,000 after purchasing another 122 shares during the period. Finally, Pinebridge Investments L.P. acquired a new position in Bright Horizons Family Solutions during Q2 with an estimated value of roughly $32,000.
Bright Horizons Family Solutions recently released its quarterly earnings results on August 1st. The company reported earnings per share of $0.54 for the quarter, surpassing the consensus estimate of $0.48 by $0.06. With a net margin of 2.92% and a return on equity of 11.52%, Bright Horizons has demonstrated its ability to generate profit while effectively utilizing shareholder investment opportunities. Furthermore, the company achieved revenue amounting to $603.22 million for the quarter, surpassing the consensus forecast of $577.65 million.
Sell-side analysts have projected an average EPS of 2.33 for Bright Horizons Family Solutions in the current fiscal year.
Bright Horizons Family Solutions Inc.
BFAM
Strong Buy
Updated on: 03/12/2023
Financial Health
Very Healthy
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
Bright Horizons Family Solutions: Analysts’ Opinions and Insider Selling Impacts Investor Confidence
Bright Horizons Family Solutions, a leading provider of early education and childcare services, has recently received mixed feedback from equities research analysts. On one hand, StockNews.com upgraded the company’s rating from “sell” to “hold” in a research report on September 2nd. However, UBS Group initiated coverage on Bright Horizons with a less favorable “sell” rating and a price target of $79.00 on May 31st.
The divergence in opinions among analysts reflects the ongoing debates surrounding the future trajectory of Bright Horizons’ stock price. BMO Capital Markets, for instance, lowered their price target from $99.00 to $92.00 in August, while JPMorgan Chase & Co. expressed a more positive outlook by raising their price target from $88.00 to $104.00 in the same period.
Citigroup also downgraded Bright Horizons’ rating, shifting it from “buy” to “neutral”. However, they simultaneously increased their price target from $95.00 to $101.00 back in May.
These varying perspectives can create a sense of perplexity for potential investors who are left wondering whether Bright Horizons’ stock is overvalued or undervalued.
In terms of recent developments within the company itself, Director Mary Ann Tocio made a notable stock sale transaction on August 3rd by selling 10,000 shares at an average price of $92.02 each for a total value of $920,200. Tocio currently holds 46,855 shares of Bright Horizons’ stock valued at approximately $4,311,597.10.
Another key figure involved in selling Bright Horizons shares is CEO Stephen Howard Kramer who sold 15,000 shares on August 25th at an average price of $95.65 per share amounting to a total transaction value of $1,434,750. Following this transaction, Kramer now owns 122,518 shares of the company valued at around $11,718,846.70.
These insider sales, along with the mixed ratings from analysts, add to the complexity surrounding Bright Horizons Family Solutions and can influence potential investors’ confidence in the company’s future performance.
It is worth noting that disclosures regarding the transactions of corporate insiders were submitted to the U.S. Securities and Exchange Commission (SEC) and are accessible on their website. The SEC ensures transparency in financial markets by requiring public companies to disclose relevant information related to significant stock trades made by corporate insiders.
As of now, approximately 1.28% of Bright Horizons’ stock is owned by corporate insiders. This figure adds an additional layer of insight for investors considering whether or not to invest in this childcare services provider.
The diverging opinions among equities research analysts and recent insider selling activity both contribute to a sense of uncertainty around Bright Horizons Family Solutions. Investors interested in this particular stock should carefully evaluate all available information before making any decisions about buying or selling shares.
Discussion about this post