Bright Horizons Family Solutions (NYSE:BFAM) Stock Price Target Cut by Barclays

Key Points

• Barclays cut Bright Horizons Family Solutions’ price target from $95 to $80 while maintaining an “overweight” rating, implying roughly 46.5% upside from the stock’s $54.61 price.
• Analyst views remain mixed: the consensus rating is “Hold,” with a $79.50 target price, as some firms raised or maintained positive ratings while Morgan Stanley and Robert W. Baird downgraded the stock.
• Bright Horizons exceeded quarterly EPS expectations, reporting $1.80 versus $1.76 forecast, while revenue rose 4.8% year over year to $841.47 million; shares have fallen sharply from their 12-month high of $108.10.

Bright Horizons Family Solutions (NYSE:BFAM - Get Free Report) had its price target dropped by equities research analysts at Barclays from $95.00 to $80.00 in a research report issued on Monday, Benzinga reports. The brokerage presently has an "overweight" rating on the stock. Barclays's target price suggests a potential upside of 46.50% from the company's current price.

Several other equities analysts have also issued reports on the company. BMO Capital Markets reissued an "outperform" rating and issued a $75.00 price target on shares of Bright Horizons Family Solutions in a research note on Friday. Morgan Stanley cut their price target on Bright Horizons Family Solutions from $64.00 to $57.00 and set an "underweight" rating for the company in a research note on Friday. The Goldman Sachs Group reduced their target price on shares of Bright Horizons Family Solutions from $93.00 to $80.00 and set a "buy" rating for the company in a research note on Friday. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Bright Horizons Family Solutions in a research report on Tuesday, October 27th. Finally, Robert W. Baird cut shares of Bright Horizons Family Solutions from an "outperform" rating to a "neutral" rating and dropped their target price for the company from $98.00 to $65.00 in a research note on Friday. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Bright Horizons Family Solutions has a consensus rating of "Hold" and a consensus target price of $79.50.

Bright Horizons Family Solutions Trading Down 0.7%

Shares of BFAM stock traded down $0.37 during trading hours on Monday, hitting $54.61. 1,530,580 shares of the company's stock traded hands, compared to its average volume of 1,004,237. The company has a quick ratio of 0.48, a current ratio of 0.45 and a debt-to-equity ratio of 1.68. Bright Horizons Family Solutions has a 12 month low of $52.10 and a 12 month high of $108.10. The stock has a market cap of $2.66 billion, a PE ratio of -18.38, a price-to-earnings-growth ratio of 0.84 and a beta of 1.18. The stock's 50 day simple moving average is $68.36 and its 200 day simple moving average is $74.27.

Bright Horizons Family Solutions (NYSE:BFAM - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The company reported $1.80 earnings per share for the quarter, beating analysts' consensus estimates of $1.76 by $0.04. Bright Horizons Family Solutions had a positive return on equity of 23.72% and a negative net margin of 4.38%. The business had revenue of $841.47 million during the quarter, compared to the consensus estimate of $842.69 million. During the same period in the prior year, the business posted $1.57 earnings per share. Bright Horizons Family Solutions's quarterly revenue was up 4.8% on a year-over-year basis. On average, sell-side analysts anticipate that Bright Horizons Family Solutions will post 4.70 EPS for the current year.

Insider Transactions at Bright Horizons Family Solutions

In other news, COO Mary Burke sold 1,200 shares of the company's stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $75.00, for a total transaction of $90,000.00. Following the sale, the chief operating officer directly owned 30,945 shares in the company, valued at $2,320,875. This represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Mary Tocio sold 6,000 shares of the company's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $72.65, for a total value of $435,900.00. Following the sale, the director owned 14,329 shares in the company, valued at approximately $1,041,001.85. This represents a 29.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.42% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Inscription Capital LLC purchased a new stake in shares of Bright Horizons Family Solutions in the third quarter worth $251,000. Chicago Partners Investment Group LLC grew its position in Bright Horizons Family Solutions by 7.0% during the third quarter. Chicago Partners Investment Group LLC now owns 6,122 shares of the company's stock worth $437,000 after buying an additional 401 shares in the last quarter. Vise Technologies Inc. increased its stake in Bright Horizons Family Solutions by 82.4% in the 3rd quarter. Vise Technologies Inc. now owns 5,933 shares of the company's stock worth $378,000 after acquiring an additional 2,680 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al increased its stake in Bright Horizons Family Solutions by 39.5% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 5,300 shares of the company's stock worth $338,000 after acquiring an additional 1,500 shares during the last quarter. Finally, Pinnacle Wealth Planning Services Inc. raised its holdings in shares of Bright Horizons Family Solutions by 240.5% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 1,471 shares of the company's stock valued at $94,000 after acquiring an additional 1,039 shares in the last quarter.

About Bright Horizons Family Solutions

Bright Horizons Family Solutions Inc provides employer-sponsored child care and workplace support services. The company operates early education and preschool centers that serve infants, toddlers, preschoolers and school-age children, with programs designed to support children's development and learning.

Its services also include back-up care for children and other dependents, typically provided through a network of child care centers, in-home caregivers and other providers. Through its Bright Horizons EdAssist Solutions business, the company offers education advising, tuition assistance administration, student loan support and related workforce education services for employers and their employees.

Founded in 1986, Bright Horizons serves families and corporate clients primarily in the United States and also has operations in the United Kingdom and other international markets.

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