Bright Horizons Family Solutions Inc. (NYSE:BFAM) has received a consensus rating of “Moderate Buy” from nine research firms currently covering the stock. According to MarketBeat, the analysts have varied perspectives: one firm has issued a sell rating, three have opted for hold ratings, while four recommend buying, and one has given a strong buy rating. The average price target among these brokerages for the next year stands at approximately $128.71.
This week, several analysts updated their positions on Bright Horizons. Notably, Morgan Stanley reduced its price target from $104.00 to $96.00, classifying the stock as “underweight.” Conversely, JPMorgan Chase & Co. increased its target from $156.00 to $160.00, maintaining an “overweight” rating. UBS Group also adjusted its target price from $112.00 to $120.00, giving the stock a “neutral” rating. Weiss Ratings reaffirmed a “hold (C+)” rating on October 8, while Robert W. Baird set a target of $136.00.
Recent Performance and Future Guidance
Bright Horizons reported its latest quarterly earnings on October 30, 2023, announcing 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 11.6% year-over-year increase in revenue reflects a strong performance, with the company previously reporting an EPS of $1.11 during the same quarter last year.
Looking ahead, Bright Horizons has set its fiscal year 2025 guidance at an EPS range of $4.48 to $4.53. Analysts project the company will post an EPS of $3.61 for the current year.
Insider Transactions and Institutional Investments
In related news, Chief Operating Officer Mary Lou Burke sold 1,000 shares of Bright Horizons on October 1, at an average price of $108.52, bringing the total transaction value to $108,520.00. Following this sale, Burke retains 26,449 shares valued at approximately $2.87 million, indicating a 3.64% decrease in her ownership.
Additionally, Director Mary Ann Tocio sold 3,000 shares on August 5, at an average price of $120.10, totaling $360,300.00. Post-transaction, Tocio holds 18,233 shares valued at around $2.19 million, reflecting a 14.13% decrease in her position. Company insiders collectively own 1.21% of the stock.
Recently, several institutional investors have altered their holdings in Bright Horizons. GAMMA Investing LLC increased its stake by 72.7%, now owning 475 shares worth $60,000 after acquiring an additional 200 shares. Similarly, DAVENPORT & Co LLC boosted its stake by 20.1%, holding 2,351 shares valued at $299,000 after purchasing 394 shares.
New positions were also established by First Bank & Trust and OneDigital Investment Advisors LLC, valued at approximately $207,000 and $295,000, respectively. Meanwhile, Impax Asset Management Group plc increased its stake by 13.8%, now owning 29,044 shares worth $3.69 million.
Bright Horizons Family Solutions Inc. is known for its services in early education and childcare, backup care, and educational advisory for employers and families across 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.
