Bright Horizons Family Solutions Inc. (NYSE:BFAM) has received a consensus rating of “Moderate Buy” from nine research firms, according to MarketBeat. The stock has garnered varied opinions, with one analyst issuing a sell rating, three a hold rating, four recommending a buy, and one assigning a strong buy rating. The average price target among these brokerages stands at $128.71 for the coming year.
Overall sentiment around the stock shifted recently as multiple analysts reassessed their price targets. On October 24, 2023, Morgan Stanley downgraded its price objective for Bright Horizons from $104.00 to $96.00 and labeled it “underweight.” Conversely, JPMorgan Chase & Co. increased its target from $156.00 to $160.00 and issued an “overweight” rating. UBS Group also raised its price target from $112.00 to $120.00, maintaining a “neutral” stance.
Recent Earnings Performance
On October 30, 2023, Bright Horizons announced its quarterly earnings, revealing an earnings per share (EPS) of $1.57. This figure surpassed analysts’ expectations of $1.32 by $0.25. The company’s revenue for the quarter reached $802.81 million, exceeding the consensus estimate of $781.16 million. The results reflect a year-over-year revenue increase of 11.6%.
The company reported a return on equity of 15.12% and a net margin of 6.34%. For the fiscal year 2025, Bright Horizons has set guidance between $4.48 and $4.53 EPS, while analysts predict an EPS of $3.61 for the current year.
Insider Transactions and Institutional Activity
In related developments, COO Mary Lou Burke sold 1,000 shares of Bright Horizons stock on October 1, 2023, at an average price of $108.52, totaling $108,520.00. Following this transaction, Burke retains 26,449 shares valued at approximately $2.87 million, marking 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, resulting in a total transaction value of $360,300.00. This sale reduced Tocio’s holdings to 18,233 shares, currently valued at about $2.19 million. Insiders now hold 1.21% of the company’s stock.
Several institutional investors have also made adjustments to their holdings of Bright Horizons. Notably, GAMMA Investing LLC increased its stake by 72.7% during the first quarter, now owning 475 shares worth $60,000 after acquiring an additional 200 shares.
DAVENPORT & Co LLC raised its stake by 20.1%, owning 2,351 shares worth $299,000, while First Bank & Trust and OneDigital Investment Advisors LLC entered new positions valued at approximately $207,000 and $295,000, respectively. Impax Asset Management Group plc also increased its stake by 13.8%, now holding 29,044 shares worth $3.69 million.
Bright Horizons Family Solutions Inc. provides early education and childcare services, backup care, and educational advisory solutions across several countries, including the United States, Puerto Rico, the United Kingdom, the Netherlands, Australia, and India. The company operates through three segments: Full Service Center-Based Child Care, Back-Up Care, and Educational Advisory and Other Services.
