Brunswick Corporation (NYSE:BC) experienced a decline of 3.2% in its stock price on Wednesday, trading as low as $75.54 before closing at $73.30. The volume of shares traded reached 192,409, a significant drop of 79% compared to the average session volume of 899,418 shares. This movement follows a previous closing price of $75.75, raising questions among investors about the company’s performance.
Analyst ratings for Brunswick have become increasingly varied, reflecting differing perspectives on the company’s future. On December 8, 2023, Seaport Res Ptn upgraded Brunswick to a “strong-buy” rating. Conversely, Wall Street Zen lowered its rating from “buy” to “hold” on December 7, 2023. Notably, Morgan Stanley revised its target price for Brunswick from $51.00 to $72.00, maintaining an “equal weight” rating as of October 27, 2023. BMO Capital Markets also increased its price target from $65.00 to $75.00, designating the stock as “outperform.”
Overall, the consensus among analysts is a mixed bag. One analyst has issued a “strong buy” rating, seven have given a “buy” rating, nine have labeled it a “hold,” and one has suggested a “sell.” According to data from MarketBeat.com, the average rating stands at “hold,” with a consensus price target of $73.57.
Financial Performance and Future Guidance
Brunswick’s recent earnings report, released on October 23, 2023, showcased positive results that exceeded analyst expectations. The company reported earnings per share (EPS) of $0.97, surpassing the consensus estimate of $0.84 by $0.13. Revenue for the quarter came in at $1.36 billion, exceeding expectations of $1.26 billion. This represents a year-over-year revenue increase of 6.8%, up from an EPS of $1.17 during the same period last year. Brunswick has forecasted its fiscal year 2025 EPS guidance to be between $3.25 and $3.25.
In terms of profitability, Brunswick reported a negative net margin of 4.60% alongside a return on equity of 10.55%. Analysts project that the company will achieve an EPS of $4.19 for the current fiscal year.
Dividend and Institutional Investments
Brunswick also declared a quarterly dividend of $0.43 per share, which was distributed on December 15, 2023. Stockholders who were on record as of November 26, 2023, received this payment, resulting in an annualized dividend of $1.72, equating to a dividend yield of 2.3%. The ex-dividend date was set for November 26, 2023, and the company’s current payout ratio stands at -47.25%.
Institutional investment in Brunswick remains strong, with hedge funds modifying their positions during the third quarter. First Horizon Corp, for example, acquired a new stake valued at approximately $26,000. Similarly, Jones Financial Companies Lllp increased its holdings by 50.6%, now owning 494 shares valued at $31,000. Other notable investors include Mirae Asset Global Investments Co. Ltd. and Larson Financial Group LLC, which significantly expanded their positions during the same period. Currently, institutional investors hold a remarkable 99.34% of Brunswick’s stock.
Brunswick Corporation, founded in 1845 by John Moses Brunswick, is a prominent player in the recreation products industry. Headquartered in Mettawa, Illinois, the company has evolved from its origins as a billiard table manufacturer to a diversified supplier of leisure equipment. Brunswick operates through two main segments: Marine and Bowling & Billiards. In the Marine segment, the company designs and manufactures recreational boats, outboard engines, and aftermarket parts under well-known brands, including Sea Ray, Bayliner, and Mercury Marine.
As Brunswick navigates the fluctuating market and evolving analyst opinions, investors will be watching closely to see how these factors influence the company’s future performance.
