Broadridge Financial Solutions (BR) Cut to Hold at Zacks Investment Research
According to Zacks, “Broadridge 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 in the past year.”
Several other analysts also recently weighed in on the company. Raymond James upgraded Broadridge Financial Solutions from a “market perform” rating to an “outperform” rating and set a $118.00 price objective for the company in a report on Wednesday, March 13th. DA Davidson upgraded Broadridge Financial Solutions from a “neutral” rating to a “buy” rating and set a $116.00 price objective for the company in a report on Friday, February 8th. Finally, SunTrust Banks restated a “buy” rating and issued a $110.00 price objective on shares of Broadridge Financial Solutions in a report on Sunday, January 6th. Four equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average target price of $117.67.
Broadridge Financial Solutions (NYSE:BR) last released its quarterly earnings data on Thursday, February 7th. The business services provider reported $0.56 earnings per share for the quarter, missing the consensus estimate of $0.71 by ($0.15). The firm had revenue of $953.40 million during the quarter, compared to the consensus estimate of $967.21 million. Broadridge Financial Solutions had a net margin of 10.25% and a return on equity of 43.95%. The business’s revenue was down 5.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.79 earnings per share. On average, sell-side analysts anticipate that Broadridge Financial Solutions will post 4.62 earnings per share for the current year.
In related news, VP Thomas P. Carey sold 1,215 shares of Broadridge Financial Solutions stock in a transaction dated 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 sale, the vice president now directly owns 4,202 shares in the company, valued at $457,261.64. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Alan J. Weber sold 1,980 shares of Broadridge Financial Solutions stock in a transaction dated Wednesday, February 20th. The shares were sold at an average price of $100.36, for a total value of $198,712.80. Following the completion of the sale, the director now owns 51,588 shares of the company’s stock, valued at $5,177,371.68. The disclosure for this sale can be found here. Insiders own 2.30% of the company’s stock.
A number of institutional investors and hedge funds have recently bought and sold shares of the business. Mercer Global Advisors Inc. ADV purchased a new position in Broadridge Financial Solutions in the first quarter valued at about $984,000. Alta Capital Management LLC grew its stake in Broadridge Financial Solutions by 53.7% in the first quarter. Alta Capital Management LLC now owns 436,821 shares of the business services provider’s stock valued at $45,294,000 after purchasing an additional 152,709 shares during the last quarter. Brinker Capital Inc. grew its stake in Broadridge Financial Solutions by 28.6% in the first quarter. Brinker Capital Inc. now owns 77,887 shares of the business services provider’s stock valued at $8,083,000 after purchasing an additional 17,313 shares during the last quarter. Eukles Asset Management grew its stake in Broadridge Financial Solutions by 4.6% in the first quarter. Eukles Asset Management now owns 2,617 shares of the business services provider’s stock valued at $271,000 after purchasing an additional 115 shares during the last quarter. Finally, Lantz Financial LLC purchased a new position in Broadridge Financial Solutions in the first quarter valued at about $1,224,000. Institutional investors own 84.26% of the company’s stock.
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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