Brink's (NYSE:BCO) Shares Gap Up - What's Next?

Key Points

• Analysts have grown more bullish: Wall Street Zen upgraded Brink's to a "strong-buy," Goldman Sachs and Truist raised price targets (to $145 and $163, respectively), and the MarketBeat average price target is $154 with a consensus of "Moderate Buy."
• Fundamentals show momentum—Brink's beat quarterly estimates (EPS $2.54 vs. $2.47, revenue $1.38B, +9.1% YoY)—and its board authorized a $750 million share repurchase (up to ~15.4% of shares) while maintaining a $1.02 annualized dividend (~1.0% yield).
• Market action was mixed: shares gapped up to $103.76 premarket from $101.23 but later traded near $100.29, roughly down 2.4% intraday.

Brink's Company (The) (NYSE:BCO - Get Free Report)'s stock price gapped up prior to trading on Thursday . The stock had previously closed at $101.23, but opened at $103.76. Brink's shares last traded at $100.2880, with a volume of 77,595 shares.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. Wall Street Zen raised Brink's from a "buy" rating to a "strong-buy" rating in a research note on Sunday. The Goldman Sachs Group lifted their price target on shares of Brink's from $129.00 to $145.00 and gave the company a "buy" rating in a research report on Monday, March 2nd. Finally, Truist Financial boosted their price objective on shares of Brink's from $138.00 to $163.00 and gave the stock a "buy" rating in a research note on Tuesday, February 10th. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, Brink's has an average rating of "Moderate Buy" and an average price target of $154.00.

Brink's Stock Down 2.4%

The company has a debt-to-equity ratio of 9.35, a current ratio of 1.51 and a quick ratio of 1.51. The firm has a market capitalization of $4.07 billion, a P/E ratio of 21.08 and a beta of 1.09. The business has a 50 day moving average price of $123.75 and a 200 day moving average price of $117.92.

Brink's (NYSE:BCO - Get Free Report) last released its earnings results on Thursday, February 26th. The business services provider reported $2.54 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.47 by $0.07. Brink's had a return on equity of 89.90% and a net margin of 3.80%.The firm had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.35 billion. During the same quarter last year, the firm posted $2.12 EPS. The company's revenue was up 9.1% on a year-over-year basis. On average, analysts predict that Brink's Company will post 6.49 earnings per share for the current year.

Brink's Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, March 2nd. Shareholders of record on Monday, February 2nd were issued a $0.255 dividend. The ex-dividend date of this dividend was Monday, February 2nd. This represents a $1.02 dividend on an annualized basis and a yield of 1.0%. Brink's's dividend payout ratio is 21.75%.

Brink's announced that its Board of Directors has authorized a share repurchase plan on Thursday, December 11th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the business services provider to purchase up to 15.4% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. M&T Bank Corp increased its stake in Brink's by 1.2% during the fourth quarter. M&T Bank Corp now owns 7,114 shares of the business services provider's stock valued at $831,000 after acquiring an additional 86 shares during the period. CWM LLC grew its holdings in shares of Brink's by 6.9% during the 4th quarter. CWM LLC now owns 1,479 shares of the business services provider's stock worth $173,000 after purchasing an additional 96 shares in the last quarter. Hantz Financial Services Inc. increased its position in shares of Brink's by 26.2% during the fourth quarter. Hantz Financial Services Inc. now owns 506 shares of the business services provider's stock valued at $59,000 after purchasing an additional 105 shares during the period. Optiver Holding B.V. raised its stake in shares of Brink's by 42.9% in the third quarter. Optiver Holding B.V. now owns 353 shares of the business services provider's stock valued at $41,000 after purchasing an additional 106 shares in the last quarter. Finally, GAMMA Investing LLC lifted its position in Brink's by 7.3% in the fourth quarter. GAMMA Investing LLC now owns 1,606 shares of the business services provider's stock worth $187,000 after purchasing an additional 109 shares during the period. Institutional investors and hedge funds own 94.96% of the company's stock.

Brink's Company Profile

The Brink's Company NYSE: BCO is a global leader in secure logistics and cash management solutions. The company provides a comprehensive suite of services that span armored transportation, cash-in-transit (CIT), ATM services, smart safe solutions, and valuables storage. Through its network of service centers and armored vehicles, Brink's ensures the safe and efficient movement of currency, precious metals, and other high-value assets for banks, retailers, mints, and government agencies.

Brink's armored transport operations are complemented by technology-driven cash management offerings, including deposit automation and secure vaulting.

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