Bright Horizons Family Solutions Inc. (NYSE:BFAM) has received a consensus rating of “Moderate Buy” from nine research firms currently covering its stock. According to MarketBeat, the ratings include one sell, three hold, four buy, and one strong buy. The average target price set by brokerages for the next year is $128.71, with the latest updates suggesting a potential price of $131.43.
Several financial analysts have weighed in on Bright Horizons recently. On October 24, 2023, Morgan Stanley revised its price target downward from $104.00 to $96.00, assigning an “underweight” rating. In contrast, JPMorgan Chase & Co. increased its target from $156.00 to $160.00, maintaining an “overweight” rating. Similarly, UBS Group raised its target from $112.00 to $120.00 while keeping a “neutral” rating.
In a report dated October 8, Weiss Ratings reaffirmed its “hold (C+)” rating. Additionally, Robert W. Baird set a target price of $136.00, suggesting a range of expectations among analysts.
Recent Earnings Performance
Bright Horizons announced its quarterly earnings on October 30, 2023, reporting earnings per share (EPS) of $1.57, surpassing analysts’ predictions of $1.32 by $0.25. The company generated revenues of $802.81 million, exceeding the consensus estimate of $781.16 million. This represents an 11.6% increase in revenue compared to the same quarter the previous year when the company reported an EPS of $1.11.
Looking ahead, Bright Horizons has set its fiscal year 2025 EPS guidance in the range of $4.480 to $4.530. Analysts project an EPS of $3.61 for the current year.
Insider Transactions and Institutional Activity
In notable insider transactions, Chief Operating Officer Mary Lou Burke sold 1,000 shares on October 1, 2023, at an average price of $108.52, totalling $108,520.00. Following this sale, Burke retains 26,449 shares valued at approximately $2.87 million, reflecting a 3.64% decrease in her ownership.
Additionally, Director Mary Ann Tocio sold 3,000 shares on August 5, 2023, at an average price of $120.10, amounting to $360,300.00. Tocio now holds 18,233 shares valued at about $2.19 million, marking a 14.13% reduction in her stake. Currently, insiders own approximately 1.21% of the company’s stock.
Institutional investors have also been active in modifying their positions in Bright Horizons. GAMMA Investing LLC increased its stake by 72.7% during the first quarter, now holding 475 shares valued at $60,000. DAVENPORT & Co LLC raised its stake by 20.1%, owning 2,351 shares worth $299,000 after acquiring an additional 394 shares.
Other institutional investors, including First Bank & Trust and OneDigital Investment Advisors LLC, have also made significant investments in Bright Horizons, indicating robust institutional interest in the company.
Bright Horizons Family Solutions Inc. operates in various countries, including the United States, Puerto Rico, the United Kingdom, the Netherlands, Australia, and India, providing early education, childcare, and workplace solutions. The company is structured into three segments: Full Service Center-Based Child Care, Back-Up Care, and Educational Advisory and Other Services.
