Broadridge Financial Solutions (NYSE:BR) Given New $181.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley raised its price target on Broadridge Financial Solutions to $181 from $176, while keeping an “equal weight” rating; the target implied 5.22% downside from the prior close.
• Broadridge reported quarterly EPS of $1.56 and revenue of $1.67 billion, both above analyst estimates. Revenue increased 5% year over year.
• Analyst opinion overall was more positive: MarketBeat reported a “Moderate Buy” consensus and an average price target of $216.71.

Broadridge Financial Solutions (NYSE:BR - Get Free Report) had its price target boosted by equities research analysts at Morgan Stanley from $176.00 to $181.00 in a research note issued on Wednesday, Benzinga reports. The brokerage currently has an "equal weight" rating on the business services provider's stock. Morgan Stanley's price objective points to a potential downside of 5.22% from the stock's previous close.

Several other analysts have also recently commented on the stock. Weiss Ratings raised shares of Broadridge Financial Solutions from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, October 8th. UBS Group reissued a "neutral" rating and set a $180.00 price target on shares of Broadridge Financial Solutions in a research note on Monday, August 17th. DA Davidson restated a "buy" rating and set a $214.00 price objective on shares of Broadridge Financial Solutions in a report on Tuesday, October 27th. Finally, Royal Bank Of Canada upped their target price on Broadridge Financial Solutions from $225.00 to $226.00 and gave the company an "outperform" rating in a research note on Monday, August 31st. Four investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $216.71.

Broadridge Financial Solutions Price Performance

BR stock traded up $7.21 during trading on Wednesday, hitting $190.97. The stock had a trading volume of 492,471 shares, compared to its average volume of 1,314,371. The company's 50 day moving average price is $171.62 and its two-hundred day moving average price is $166.21. Broadridge Financial Solutions has a 1-year low of $133.83 and a 1-year high of $233.10. The stock has a market cap of $21.56 billion, a price-to-earnings ratio of 19.87 and a beta of 0.90. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.24 and a current ratio of 1.24.

Broadridge Financial Solutions (NYSE:BR - Get Free Report) last released its earnings results on Tuesday, November 3rd. The business services provider reported $1.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.37 by $0.19. The company had revenue of $1.67 billion for the quarter, compared to analyst estimates of $1.65 billion. Broadridge Financial Solutions had a net margin of 15.04% and a return on equity of 40.25%. The firm's quarterly revenue was up 5.0% on a year-over-year basis. During the same period in the prior year, the firm earned $1.51 EPS. On average, sell-side analysts forecast that Broadridge Financial Solutions will post 10.54 EPS for the current fiscal year.

Insider Activity

In other news, VP Thomas Carey sold 2,501 shares of the business's stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $159.76, for a total transaction of $399,559.76. Following the transaction, the vice president directly owned 8,800 shares of the company's stock, valued at approximately $1,405,888. The trade was a 22.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 1.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of BR. AlphaCore Capital LLC increased its holdings in shares of Broadridge Financial Solutions by 124.2% in the 3rd quarter. AlphaCore Capital LLC now owns 4,855 shares of the business services provider's stock valued at $785,000 after purchasing an additional 2,690 shares during the period. Running Oak Capital LLC lifted its stake in Broadridge Financial Solutions by 4.5% in the third quarter. Running Oak Capital LLC now owns 69,439 shares of the business services provider's stock valued at $11,214,000 after acquiring an additional 3,013 shares during the last quarter. Fulcrum Asset Management LLP grew its position in Broadridge Financial Solutions by 6,689.1% in the third quarter. Fulcrum Asset Management LLP now owns 6,246 shares of the business services provider's stock worth $1,005,000 after acquiring an additional 6,154 shares in the last quarter. Allspring Global Investments Holdings LLC raised its holdings in shares of Broadridge Financial Solutions by 22.2% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 7,751 shares of the business services provider's stock valued at $1,249,000 after purchasing an additional 1,408 shares in the last quarter. Finally, StoneRidge PMG Advisors LLC bought a new stake in Broadridge Financial Solutions in the third quarter worth $403,000. Institutional investors and hedge funds own 90.03% of the company's stock.

Key Headlines Impacting Broadridge Financial Solutions

Here are the key news stories impacting Broadridge Financial Solutions this week:

• Positive Sentiment: Fiscal Q1 adjusted EPS of $1.56 topped the $1.37 consensus, while revenue of $1.67 billion also exceeded estimates. Recurring revenue rose 11%, and closed sales increased 10% to $36 million. Broadridge Q1 results
• Positive Sentiment: Management reaffirmed fiscal 2027 guidance, including 8%–12% adjusted EPS growth and 6%–8% constant-currency recurring-revenue growth, supporting confidence in the annual outlook. Guidance and growth initiatives
• Positive Sentiment: The NYSE selected Broadridge to provide on-chain shareholder services, including voting, for a tokenized-securities project. The partnership could position BR to benefit as financial markets adopt tokenization. NYSE tokenized-securities partnership
• Negative Sentiment: Operating income fell 8% and adjusted operating income declined 9%; adjusted operating margin contracted to 13.8% from 15.8%. The company also noted that event-driven revenue weighed on results, tempering the otherwise strong recurring-revenue and earnings performance. Quarterly results analysis

Broadridge Financial Solutions Company Profile

Broadridge Financial Solutions, Inc NYSE: BR is a financial technology and business services company that provides communications, data, and technology solutions to financial institutions, public companies, and investors. Its services support the administration and communication of financial information across the investment lifecycle.

The company's offerings include investor communications, proxy and corporate governance services, securities processing, trade and portfolio management, and technology platforms for wealth and investment management firms.

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