Bright Horizons Family Solutions Inc. (BFAM): What’s Inside the Story?

On Monday, shares of Bright Horizons Family Solutions Inc. (NYSE:BFAM) marked $115.54 per share versus a previous $110.26 closing price. With having a 4.79% gain, an insight into the fundamental values of Bright Horizons Family Solutions Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. BFAM showed a fall of -23.12% within its YTD performance, with highs and lows between $64.23 – $176.98 during the period of 52 weeks, compared to the simple moving average of -16.58% in the period of the last 200 days.

BofA/Merrill equity researchers changed the status of Bright Horizons Family Solutions Inc. (NYSE: BFAM) shares from “Neutral” to a “Underperform” rating in the report published on April 21st, 2020. Other analysts, including Robert W. Baird, also published their reports on BFAM shares. Robert W. Baird repeated the rating from the previous report, marking BFAM under “Outperform” rating, in the report published on March 19th, 2020. Additionally, BFAM shares got another “Outperform” rating from BMO Capital Markets, setting a target price of $178 on the company’s shares, according to the report published in January 10th, 2020. On the other hand, Morgan Stanley Initiated the “Equal-Weight” rating for BFAM shares, as published in the report on October 8th, 2019. BMO Capital Markets seems to be going bullish on the price of BFAM shares, based on the price prediction for BFAM, indicating that the shares will jump from $152 to $166, giving the shares “Outperform” rating based on their report from September 11th, 2019. Another “Buy” rating came from Goldman, providing a prediction for $166 price target according to the report published in June 20th, 2019.

Bright Horizons Family Solutions Inc. (BFAM) Analysis

The present dividend yield for BFAM owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Bright Horizons Family Solutions Inc., the company needs to provide a healthy cash flow, currently at the value of 39.90. In addition, the growth of sales from quarter to quarter is recording 0.90%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Bright Horizons Family Solutions Inc. (BFAM) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 18.40% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 0.60 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while BFAM is currently recording an average of 691.70K in volumes. The volatility of the stock on monthly basis is set at 4.20%, while the weekly volatility levels are marked at 4.23%with -1.25% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $129.38, indicating growth from the present price of $115.54, which can represent yet another valuable research and analysis points that can help you decide whether to invest in BFAM or pass.

What to Look for When Analyzing Bright Horizons Family Solutions Inc. Shares?

Bright Horizons Family Solutions Inc. (BFAM) is based in the USA and it represents one of the well-known company operating with Consumer Cyclical sector. If you wish to compare BFAM shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 40.30 for Bright Horizons Family Solutions Inc., while the value 34.85 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 2.87 is supported by the yearly EPS growth of 14.30%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 1.20%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 96.70% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in BFAM Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in BFAM in the recent period. That is how T. Rowe Price Associates, Inc. now has an increase position in BFAM by 6.42% in the first quarter, owning 7.33 million shares of BFAM stocks, with the value of $819.89 million after the purchase of an additional 442,369 shares during the last quarter. In the meanwhile, The Vanguard Group, Inc. also increased their stake in BFAM shares changed 1.03% in the first quarter, which means that the company now owns 5.36 million shares of company, all valued at $599.93 million after the acquisition of additional 54,551 shares during the last quarter.

Capital Research & Management Co. acquired a new position in Bright Horizons Family Solutions Inc. during the first quarter, with the value of $336.37 million, and Brown Advisory LLC increased their stake in the company’s shares by 5.98% in the first quarter, now owning 74,935 shares valued at $148.62 million after the acquisition of the additional 1.33 million shares during the last quarter. At the present, 96.70% of BFAM shares are in the ownership of institutional investors.