Broadridge Financial Solutions (NYSE:BR) Hits New 1-Year High on Earnings Beat

Key Points

• Broadridge Financial Solutions reached a new 52-week high of $269.14 after reporting strong earnings, with a Q1 EPS of $3.55 that exceeded estimates and revenue of $2.07 billion.
• The company announced an increase in its quarterly dividend to $0.975 per share, up from $0.88, with an annual yield of 1.5%.
• Analysts have set new targets for the stock, with Needham & Company establishing a price target of $300, reflecting positive sentiment and strong performance.

Broadridge Financial Solutions, Inc. (NYSE:BR - Get Free Report) shares reached a new 52-week high during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $269.14 and last traded at $261.48, with a volume of 386338 shares. The stock had previously closed at $248.46.

The business services provider reported $3.55 EPS 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 business had revenue of $2.07 billion for the quarter, compared to the consensus estimate of $2.06 billion. During the same period in the previous year, the company posted $3.50 earnings per share. The company's revenue for the quarter was up 6.2% compared to the same quarter last year.

Broadridge Financial Solutions Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 2nd. Shareholders of record on Thursday, September 11th will be issued a $0.975 dividend. This represents a $3.90 annualized dividend and a yield of 1.5%. This is a boost from Broadridge Financial Solutions's previous quarterly dividend of $0.88. The ex-dividend date of this dividend is Thursday, September 11th. Broadridge Financial Solutions's dividend payout ratio is presently 49.65%.

Analyst Upgrades and Downgrades

BR has been the topic of a number of recent analyst reports. Royal Bank Of Canada reiterated an "outperform" rating and set a $259.00 price target on shares of Broadridge Financial Solutions in a report on Monday, May 19th. Needham & Company LLC upped their price objective on Broadridge Financial Solutions from $300.00 to $305.00 and gave the company a "buy" rating in a research report on Wednesday. Wall Street Zen raised Broadridge Financial Solutions from a "hold" rating to a "buy" rating in a report on Friday, May 9th. Finally, Morgan Stanley boosted their price target on Broadridge Financial Solutions from $222.00 to $261.00 and gave the stock an "equal weight" rating in a research note on Wednesday. Five analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $258.17.

Insider Activity at Broadridge Financial Solutions

In other Broadridge Financial Solutions news, Director Pamela L. Carter sold 4,829 shares of the firm's stock in a transaction dated Tuesday, May 20th. The stock was sold at an average price of $242.23, for a total value of $1,169,728.67. Following the transaction, the director directly owned 7,242 shares of the company's stock, valued at approximately $1,754,229.66. This trade represents a 40.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Douglas Richard Deschutter sold 5,056 shares of the business's stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $239.55, for a total value of $1,211,164.80. Following the sale, the insider owned 21,167 shares of the company's stock, valued at approximately $5,070,554.85. This represents a 19.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 17,048 shares of company stock valued at $4,101,083 in the last quarter. 1.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Broadridge Financial Solutions

Institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. increased its position in Broadridge Financial Solutions by 3.1% in the first quarter. Vanguard Group Inc. now owns 14,733,147 shares of the business services provider's stock worth $3,572,199,000 after buying an additional 438,381 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in shares of Broadridge Financial Solutions by 50.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 3,560,316 shares of the business services provider's stock valued at $804,952,000 after acquiring an additional 1,186,555 shares during the period. Geode Capital Management LLC increased its holdings in Broadridge Financial Solutions by 4.3% in 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 in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its stake 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, Barclays PLC raised its stake in Broadridge Financial Solutions by 2.5% during the 4th quarter. Barclays PLC now owns 1,648,527 shares of the business services provider's stock worth $372,713,000 after acquiring an additional 40,506 shares during the period. Hedge funds and other institutional investors own 90.03% of the company's stock.

Broadridge Financial Solutions Price Performance

The firm has a market cap of $31.26 billion, a PE ratio of 37.65 and a beta of 0.94. The firm's fifty day simple moving average is $243.20 and its two-hundred day simple moving average is $238.72. The company has a quick ratio of 1.32, a current ratio of 0.98 and a debt-to-equity ratio of 1.04.

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.