Bright Horizons Family Solutions Inc. (NYSE:BFAM) has garnered a consensus rating of “Moderate Buy” from nine research firms currently covering the stock. According to MarketBeat, the ratings reflect a mix of perspectives: one analyst has issued a sell rating, three analysts have assigned a hold rating, four have recommended a buy, and one has given a strong buy rating. The average price target among these firms stands at $128.71 for the next year.
Market analysts have recently provided insights into Bright Horizons’ performance. Notably, Morgan Stanley reduced its price objective from $104.00 to $96.00, classifying the stock as “underweight” in a report released on October 24, 2023. Conversely, JPMorgan Chase & Co. increased its target price from $156.00 to $160.00 and rated the company as “overweight.” Similarly, UBS Group adjusted its target from $112.00 to $120.00, designating a “neutral” rating.
Bright Horizons recently announced its quarterly earnings on October 30, 2023. The company reported earnings per share (EPS) of $1.57, surpassing analysts’ consensus estimates of $1.32 by $0.25. The business generated revenue of $802.81 million during the quarter, exceeding the expected $781.16 million. This represents an 11.6% increase in revenue year-over-year, up from $1.11 EPS in the same quarter last year.
Bright Horizons has set its fiscal year 2025 guidance at $4.480 to $4.530 EPS. Analysts project that the company will achieve an EPS of $3.61 for the current year.
Significant insider activity has also been noted. On October 1, 2023, Chief Operating Officer Mary Lou Burke sold 1,000 shares at an average price of $108.52, totaling $108,520. Following this sale, she holds 26,449 shares valued at approximately $2.87 million, representing a 3.64% decrease in ownership. In another transaction, Director Mary Ann Tocio sold 3,000 shares on August 5, 2023 for an average price of $120.10, amounting to $360,300. After this transaction, she owns 18,233 shares, valued at roughly $2.19 million, reflecting a 14.13% decrease in her position.
Institutional investors are also adjusting their holdings in Bright Horizons. GAMMA Investing LLC increased its stake by 72.7% in the first quarter, now owning 475 shares valued at $60,000. DAVENPORT & Co. LLC raised its stake by 20.1%, acquiring an additional 394 shares for a total of 2,351 shares worth $299,000. Other institutional investors, such as OneDigital Investment Advisors LLC and Impax Asset Management Group plc, have also made significant investments.
Bright Horizons Family Solutions provides early education and childcare, back-up care, educational advisory, and various workplace solutions across the United States, Puerto Rico, the United Kingdom, the Netherlands, Australia, and India. The company operates in three segments: Full Service Center-Based Child Care, Back-Up Care, and Educational Advisory and Other Services.
