Zacks Investment Research upgraded shares of Broadridge Financial Solutions (NYSE:BR) from a hold rating to a buy rating in a research report sent to investors on Friday, Zacks.com reports. They currently have $131.00 price target on the business services provider’s stock.
According to Zacks, “Broadridge reported mixed third-quarter fiscal 2019 results, with earnings beating but revenues lagging the Zacks Consensus Estimate. The company has a strong business model, backed by higher recurring fee revenues. Increasing demand for technology solutions has enabled the company to increase investments in digital, AI, cloud and blockchain particularly via acquisitions. The company continues to enhance its internal growth through strategic buyouts. It is also consistent in rewarding its shareholders. Despite such positives, Broadridge continues to grapple with client concentration. Stiff competition will affect Broadridge’s ability to increase its market share and profitability. Multiple acquisitions increase the company’s exposure to integration risks and higher expenses. High debt may limit the company’s future expansion and worsen its risk profile. Shares of Broadridge have underperformed its industry year to date.”
A number of other research analysts have also commented on the company. DA Davidson raised Broadridge Financial Solutions from a neutral rating to a buy rating and set a $116.00 price target for the company in a research report on Friday, February 8th. SunTrust Banks upped their price target on Broadridge Financial Solutions to $130.00 and gave the company a buy rating in a research report on Wednesday, May 8th. Finally, Raymond James raised Broadridge Financial Solutions from a market perform rating to an outperform rating and set a $118.00 price target for the company in a research report on Wednesday, March 13th. Four research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. Broadridge Financial Solutions currently has a consensus rating of Buy and a consensus target price of $124.50.
Broadridge Financial Solutions (NYSE:BR) last released its earnings results on Tuesday, May 7th. The business services provider reported $1.59 earnings per share for the quarter, beating analysts’ consensus estimates of $1.49 by $0.10. Broadridge Financial Solutions had a return on equity of 48.71% and a net margin of 11.31%. The company had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same quarter in the previous year, the company posted $1.00 EPS. Broadridge Financial Solutions’s revenue for the quarter was up 14.3% on a year-over-year basis. Equities research analysts forecast that Broadridge Financial Solutions will post 4.65 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 3rd. Shareholders of record on Friday, June 14th will be given a dividend of $0.485 per share. This represents a $1.94 dividend on an annualized basis and a yield of 1.65%. The ex-dividend date is Thursday, June 13th. Broadridge Financial Solutions’s payout ratio is 46.30%.
In other news, Director Alan J. Weber sold 1,980 shares of the stock in a transaction that occurred on Wednesday, February 20th. The stock was sold at an average price of $100.36, for a total value of $198,712.80. Following the completion of the transaction, the director now owns 51,588 shares of the company’s stock, valued at approximately $5,177,371.68. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Thomas P. Carey sold 1,215 shares of the stock in a transaction that occurred on Monday, April 8th. The stock was sold at an average price of $108.82, for a total value of $132,216.30. Following the completion of the transaction, the vice president now directly owns 4,202 shares of the company’s stock, valued at approximately $457,261.64. The disclosure for this sale can be found here. Corporate insiders own 2.30% of the company’s stock.
Large investors have recently made changes to their positions in the company. Janus Henderson Group PLC grew its stake in shares of Broadridge Financial Solutions by 17.7% in the 1st quarter. Janus Henderson Group PLC now owns 7,824,319 shares of the business services provider’s stock worth $811,304,000 after buying an additional 1,177,867 shares during the last quarter. Oregon Public Employees Retirement Fund grew its stake in shares of Broadridge Financial Solutions by 8,044.5% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 4,178,116 shares of the business services provider’s stock worth $43,000 after buying an additional 4,126,816 shares during the last quarter. Northern Trust Corp grew its stake in shares of Broadridge Financial Solutions by 1.2% in the 4th quarter. Northern Trust Corp now owns 1,658,872 shares of the business services provider’s stock worth $159,666,000 after buying an additional 19,433 shares during the last quarter. Bank of New York Mellon Corp grew its stake in shares of Broadridge Financial Solutions by 26.8% in the 4th quarter. Bank of New York Mellon Corp now owns 1,572,745 shares of the business services provider’s stock worth $151,375,000 after buying an additional 332,615 shares during the last quarter. Finally, Deutsche Bank AG grew its stake in shares of Broadridge Financial Solutions by 80.3% in the 4th quarter. Deutsche Bank AG now owns 1,501,941 shares of the business services provider’s stock worth $144,559,000 after buying an additional 668,709 shares during the last quarter. 85.47% of the stock is owned by hedge funds and other institutional investors.
About Broadridge Financial Solutions
Broadridge Financial Solutions, Inc provides investor communications and technology-driven solutions for the financial services industry worldwide. The company's Investor Communication Solutions segment processes and distributes proxy materials to investors in equity securities and mutual funds, as well as facilitates related vote processing services; and offers ProxyEdge, an electronic proxy delivery and voting solution.
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