BrightView (NYSE:BV) Shares Gap Down on Disappointing Earnings

Key Points

• BrightView Holdings, Inc. shares gapped down significantly to $15.25 after announcing weaker than expected quarterly earnings, reporting $0.30 EPS versus an anticipated $0.32 EPS.
• Revenue for the company fell 4.1% year-over-year to $708.30 million, missing analyst expectations of $763.43 million.
• After major shareholder Kkr Group Partnership L.P. sold 11,600,000 shares for $167 million, insider ownership decreased by 35.01%, now valuing their remaining stake at approximately $310 million.

BrightView Holdings, Inc. (NYSE:BV - Get Free Report)'s stock price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $16.28, but opened at $15.25. BrightView shares last traded at $14.81, with a volume of 63,551 shares trading hands.

The company reported $0.30 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.32 by ($0.02). BrightView had a return on equity of 8.29% and a net margin of 1.65%. The business had revenue of $708.30 million for the quarter, compared to analyst estimates of $763.43 million. During the same quarter in the previous year, the company earned $0.32 EPS. The business's revenue for the quarter was down 4.1% on a year-over-year basis.

Analysts Set New Price Targets

Several equities analysts recently commented on BV shares. Loop Capital dropped their price objective on shares of BrightView from $21.00 to $20.00 and set a "buy" rating for the company in a research note on Thursday, July 3rd. Wall Street Zen raised shares of BrightView from a "hold" rating to a "buy" rating in a research note on Saturday, July 5th. Finally, Robert W. Baird dropped their price target on shares of BrightView from $20.00 to $19.00 and set an "outperform" rating for the company in a research note on Wednesday, July 2nd. One research analyst has rated the stock with a sell rating, one has given a hold rating and six have issued a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $17.82.

Insiders Place Their Bets

In other BrightView news, major shareholder Kkr Group Partnership L.P. sold 11,600,000 shares of BrightView stock in a transaction on Friday, June 6th. The shares were sold at an average price of $14.40, for a total value of $167,040,000.00. Following the completion of the sale, the insider directly owned 21,533,123 shares of the company's stock, valued at approximately $310,076,971.20. The trade was a 35.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 2.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in BV. Vanguard Group Inc. boosted its stake in BrightView by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 5,830,873 shares of the company's stock valued at $93,236,000 after acquiring an additional 59,857 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in BrightView by 12.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,063,472 shares of the company's stock valued at $64,976,000 after acquiring an additional 454,756 shares during the last quarter. Cooke & Bieler LP boosted its stake in BrightView by 0.7% in the second quarter. Cooke & Bieler LP now owns 2,532,230 shares of the company's stock valued at $42,162,000 after acquiring an additional 16,620 shares during the last quarter. Bessemer Group Inc. boosted its stake in BrightView by 52.4% in the second quarter. Bessemer Group Inc. now owns 2,424,001 shares of the company's stock valued at $40,362,000 after acquiring an additional 833,469 shares during the last quarter. Finally, Newtyn Management LLC boosted its stake in BrightView by 30.5% in the first quarter. Newtyn Management LLC now owns 2,300,000 shares of the company's stock valued at $29,532,000 after acquiring an additional 538,111 shares during the last quarter. 92.41% of the stock is currently owned by institutional investors and hedge funds.

BrightView Trading Down 5.6%

The company has a debt-to-equity ratio of 0.63, a current ratio of 1.42 and a quick ratio of 1.42. The stock has a market capitalization of $1.46 billion, a PE ratio of -761.37 and a beta of 1.26. The stock's 50 day simple moving average is $15.88 and its two-hundred day simple moving average is $14.77.

About BrightView

BrightView Holdings, Inc, through its subsidiaries, provides commercial landscaping services in the United States. It operates through two segments, Maintenance Services and Development Services. The Maintenance Services segment delivers a suite of recurring commercial landscaping services, including mowing, gardening, mulching and snow removal, water management, irrigation maintenance, tree care, golf course maintenance, and specialty turf maintenance.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.