Broadridge Financial Solutions, Inc. (NYSE:BR) Sees Large Drop in Short Interest

Key Points

• Broadridge Financial Solutions reported a significant decrease in short interest, dropping by 22.6% from July to August, totaling 1,130,000 shares.
• The company's quarterly earnings surpassed expectations, with $3.55 earnings per share and a revenue of $2.07 billion, reflecting a 6.2% increase year-over-year.
• Broadridge has increased its quarterly dividend to $0.975 per share, representing a yield of 1.5% and a payout ratio of about 49.65%.

Broadridge Financial Solutions, Inc. (NYSE:BR - Get Free Report) saw a large drop in short interest in August. As of August 15th, there was short interest totaling 1,130,000 shares, adropof22.6% from the July 31st total of 1,460,000 shares. Based on an average trading volume of 670,600 shares, the short-interest ratio is presently 1.7 days. Based on an average trading volume of 670,600 shares, the short-interest ratio is presently 1.7 days.

Broadridge Financial Solutions Stock Down 0.4%

NYSE BR opened at $252.32 on Tuesday. The business has a fifty day moving average price of $250.80 and a two-hundred day moving average price of $241.69. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.98 and a quick ratio of 0.98. Broadridge Financial Solutions has a fifty-two week low of $207.21 and a fifty-two week high of $271.91. The stock has a market capitalization of $29.55 billion, a PE ratio of 35.76 and a beta of 0.96.

Broadridge Financial Solutions (NYSE:BR - Get Free Report) last released its earnings results on Tuesday, August 5th. The business services provider reported $3.55 earnings per share for the quarter, topping the consensus estimate of $3.51 by $0.04. Broadridge Financial Solutions had a return on equity of 42.72% and a net margin of 12.19%.The firm had revenue of $2.07 billion during the quarter, compared to analysts' expectations of $2.06 billion. During the same period in the prior year, the company earned $3.50 earnings per share. The company's quarterly revenue was up 6.2% on a year-over-year basis. Broadridge Financial Solutions has set its FY 2026 guidance at 9.230-9.580 EPS. Equities analysts expect that Broadridge Financial Solutions will post 8.53 earnings per share for the current fiscal year.

Broadridge Financial Solutions Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 2nd. Investors of record on Thursday, September 11th will be issued a $0.975 dividend. The ex-dividend date is Thursday, September 11th. This is a positive change from Broadridge Financial Solutions's previous quarterly dividend of $0.88. This represents a $3.90 dividend on an annualized basis and a yield of 1.5%. Broadridge Financial Solutions's dividend payout ratio (DPR) is currently 49.65%.

Insider Activity

In other news, CEO Timothy C. Gokey sold 84,571 shares of the firm's stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $259.53, for a total value of $21,948,711.63. Following the completion of the transaction, the chief executive officer owned 165,634 shares in the company, valued at $42,986,992.02. This trade represents a 33.80% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, President Christopher John Perry sold 7,036 shares of Broadridge Financial Solutions stock in a transaction dated Tuesday, August 12th. The stock was sold at an average price of $262.72, for a total value of $1,848,497.92. Following the transaction, the president owned 48,813 shares of the company's stock, valued at $12,824,151.36. The trade was a 12.60% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 147,532 shares of company stock valued at $38,417,208 in the last 90 days. 1.30% of the stock is owned by corporate insiders.

Institutional Trading of Broadridge Financial Solutions

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. increased its holdings in Broadridge Financial Solutions by 2.0% in the second quarter. Vanguard Group Inc. now owns 15,031,420 shares of the business services provider's stock valued at $3,653,086,000 after purchasing an additional 298,273 shares during the period. State Street Corp grew its holdings in Broadridge Financial Solutions by 0.6% during the 2nd quarter. State Street Corp now owns 5,642,154 shares of the business services provider's stock worth $1,376,006,000 after acquiring an additional 35,061 shares during the period. Geode Capital Management LLC grew its holdings in Broadridge Financial Solutions by 4.3% during the 2nd quarter. Geode Capital Management LLC now owns 3,292,241 shares of the business services provider's stock worth $797,031,000 after acquiring an additional 136,386 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in Broadridge Financial Solutions by 3.6% during the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,751,266 shares of the business services provider's stock worth $425,610,000 after acquiring an additional 61,659 shares during the period. Finally, Invesco Ltd. grew its holdings in Broadridge Financial Solutions by 2.5% during the 2nd quarter. Invesco Ltd. now owns 1,466,774 shares of the business services provider's stock worth $356,470,000 after acquiring an additional 36,355 shares during the period. 90.03% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of brokerages have recently issued reports on BR. Royal Bank Of Canada restated an "outperform" rating and set a $259.00 price objective on shares of Broadridge Financial Solutions in a report on Monday, May 19th. Needham & Company LLC boosted their price objective on Broadridge Financial Solutions from $300.00 to $305.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Morgan Stanley boosted their price target on Broadridge Financial Solutions from $222.00 to $261.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 6th. Finally, UBS Group increased their price target on Broadridge Financial Solutions from $250.00 to $280.00 and gave the stock a "neutral" rating in a research report on Friday, August 8th. Two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $261.50.

Broadridge Financial Solutions Company Profile

Broadridge Financial Solutions, Inc provides investor communications and technology-driven solutions for the financial services industry. The company's Investor Communication Solutions segment processes and distributes proxy materials to investors in equity securities and mutual funds, as well as facilitates related vote processing services; and distributes regulatory reports, class action, and corporate action/reorganization event information, as well as tax reporting solutions.

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.