BMO Capital Markets Issues Pessimistic Forecast for Bright Horizons Family Solutions (NYSE:BFAM) Stock Price

Key Points

• BMO Capital Markets cut Bright Horizons’ price target from $93 to $83 but maintained an “outperform” rating, implying roughly 29% upside from the $64.27 share price. Overall analyst sentiment is “Hold,” with a consensus target of $93.50.
• Bright Horizons exceeded quarterly expectations, reporting $1.28 in EPS versus the $1.20 estimate and $779.18 million in revenue, up 6.4% year over year. The company guided to fiscal 2026 EPS of $5.05–$5.15.
• Insiders sold 8,900 shares worth approximately $656,584 over the past 90 days, while several institutional investors initiated or increased positions, including Giverny Capital, which raised its stake by 45.6%.

Bright Horizons Family Solutions (NYSE:BFAM - Get Free Report) had its target price cut by investment analysts at BMO Capital Markets from $93.00 to $83.00 in a note issued to investors on Monday, Benzinga reports. The brokerage presently has an "outperform" rating on the stock. BMO Capital Markets' price target points to a potential upside of 29.14% from the stock's current price.

Other analysts also recently issued research reports about the stock. UBS Group boosted their price objective on shares of Bright Horizons Family Solutions from $87.00 to $88.00 and gave the stock a "neutral" rating in a research report on Friday, July 31st. Morgan Stanley decreased their price objective on Bright Horizons Family Solutions from $68.00 to $66.00 and set an "underweight" rating for the company in a report on Wednesday, September 23rd. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Bright Horizons Family Solutions in a report on Wednesday, July 29th. Four analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $93.50.

Bright Horizons Family Solutions Trading Up 0.0%

Shares of BFAM stock opened at $64.27 on Monday. The stock has a market capitalization of $3.13 billion, a P/E ratio of 20.34, a price-to-earnings-growth ratio of 0.98 and a beta of 1.18. Bright Horizons Family Solutions has a fifty-two week low of $57.63 and a fifty-two week high of $109.86. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.48 and a current ratio of 0.48. The company has a 50 day moving average price of $70.77 and a 200 day moving average price of $72.47.

Bright Horizons Family Solutions (NYSE:BFAM - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $1.28 EPS for the quarter, topping the consensus estimate of $1.20 by $0.08. The firm had revenue of $779.18 million during the quarter, compared to analysts' expectations of $774.84 million. Bright Horizons Family Solutions had a return on equity of 20.09% and a net margin of 5.78%.Bright Horizons Family Solutions's revenue for the quarter was up 6.4% on a year-over-year basis. During the same period in the previous year, the firm posted $1.07 EPS. Bright Horizons Family Solutions has set its FY 2026 guidance at 5.050-5.150 EPS. Equities research analysts predict that Bright Horizons Family Solutions will post 4.7 EPS for the current fiscal year.

Insider Activity

In other Bright Horizons Family Solutions news, COO Mary Burke sold 1,200 shares of the company's stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $75.00, for a total value of $90,000.00. Following the sale, the chief operating officer owned 30,945 shares of the company's stock, valued at $2,320,875. This represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Mary Tocio sold 6,000 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $72.65, for a total transaction of $435,900.00. Following the completion of the sale, the director owned 14,329 shares in the company, valued at $1,041,001.85. This represents a 29.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 8,900 shares of company stock valued at $656,584 over the last 90 days. 1.42% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Bright Horizons Family Solutions

A number of large investors have recently bought and sold shares of the stock. Squarepoint Ops LLC purchased a new stake in shares of Bright Horizons Family Solutions during the second quarter worth about $3,187,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Bright Horizons Family Solutions during the second quarter worth approximately $11,779,000. Aurora Investment Counsel purchased a new stake in Bright Horizons Family Solutions in the 2nd quarter worth approximately $1,964,000. Giverny Capital Inc. grew its stake in Bright Horizons Family Solutions by 45.6% in the 2nd quarter. Giverny Capital Inc. now owns 1,080,793 shares of the company's stock worth $76,607,000 after acquiring an additional 338,464 shares during the period. Finally, Fifth Third Bancorp raised its holdings in Bright Horizons Family Solutions by 27,305.7% in the 1st quarter. Fifth Third Bancorp now owns 177,589 shares of the company's stock valued at $14,585,000 after acquiring an additional 176,941 shares during the last quarter.

Bright Horizons Family Solutions Company Profile

Bright Horizons Family Solutions Inc NYSE: BFAM provides employer-sponsored child care and workforce-support services. Its offerings include full-service, center-based early education and preschool programs, back-up care for children and adults, and related family support services designed to help employees manage work and caregiving responsibilities.

The company also provides educational advisory services, including college admissions counseling, academic support and related guidance for families.

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