Brunswick Corporation’s stock price experienced a significant decline of 3.2% during trading on Wednesday, falling to a low of $75.54 before closing at $73.30. This drop occurred as just 192,409 shares changed hands, a stark decrease of 79% from the average volume of 899,418 shares. The stock had previously closed at $75.75, indicating a notable shift in investor sentiment.
Analyst Updates Impacting Stock Performance
Analysts have recently provided a range of updates regarding Brunswick, which may have contributed to the current market reaction. On December 8, 2023, Seaport Res Ptn upgraded Brunswick to a “strong-buy” rating. Meanwhile, Morgan Stanley increased its target price from $51.00 to $72.00 while maintaining an “equal weight” rating as of October 27, 2023. BMO Capital Markets also raised its price target from $65.00 to $75.00 and rated the stock as “outperform” in a report on October 24, 2023.
In contrast, Robert W. Baird adjusted its price objective from $60.00 to $70.00 with a “neutral” rating on the same day. Further complicating matters, Wall Street Zen downgraded Brunswick from a “buy” to a “hold” rating on December 7, 2023. Currently, one analyst rates the stock as a strong buy, seven as buy, nine as hold, and one as sell, resulting in an average rating of “hold” with a consensus price target of $73.57, according to data from MarketBeat.com.
Financial Performance and Dividend Announcements
Brunswick Corporation recently disclosed its earnings results on October 23, 2023, reporting earnings per share (EPS) of $0.97, surpassing analysts’ expectations of $0.84 by $0.13. The company noted a negative net margin of 4.60% but a positive return on equity of 10.55%. Revenue for the quarter reached $1.36 billion, exceeding analyst estimates of $1.26 billion and reflecting a year-over-year increase of 6.8%. Brunswick has set guidance for its fiscal year 2025 at an EPS range of $3.25 to $3.25.
In addition to its financial results, Brunswick declared a quarterly dividend of $0.43 per share, which was paid on December 15, 2023. This dividend represents an annualized payout of $1.72, yielding approximately 2.3%. The ex-dividend date was November 26, 2023, and the company’s current payout ratio stands at 47.25%.
Institutional Investor Activity
Recent changes in institutional holdings further highlight investor interest in Brunswick. In the third quarter, First Horizon Corp acquired a new position in Brunswick valued at about $26,000. Additionally, Jones Financial Companies Lllp increased its holdings by 50.6%, now owning 494 shares valued at $31,000 after acquiring an additional 166 shares.
Mirae Asset Global Investments Co. Ltd. and Quent Capital LLC also made new investments in Brunswick, worth approximately $37,000 and $38,000, respectively. Larson Financial Group LLC raised its position significantly by 705.4%, now holding 596 shares valued at $38,000 after adding 522 shares during the same period. Overall, institutional investors own 99.34% of Brunswick’s stock.
Brunswick Corporation, founded in 1845 by John Moses Brunswick, is a leading global provider of recreation products. Based in Mettawa, Illinois, the company has diversified from its initial focus on billiard tables to offering a wide range of leisure equipment for both consumer and commercial markets. Its operations are divided into two primary segments: Marine and Bowling & Billiards. The Marine segment features recreational boats, outboard engines, and aftermarket parts under well-known brands such as Sea Ray, Bayliner, and Mercury Marine.
