Broadridge Financial Solutions (NYSE:BR) Sees Strong Trading Volume - Still a Buy?

Key Points

• Broadridge Financial Solutions experienced a significant increase in trading volume, with 1,480,848 shares traded on a recent Monday, marking a 166% rise from the previous session.
• Several brokerages have upgraded their ratings on Broadridge, with Wall Street Zen moving it from "hold" to "buy" and establishing an average price target of $250.83.
• The company recently announced a quarterly dividend of $0.88 per share, translating to an annualized yield of 1.39% and a payout ratio of 52.93%.

Broadridge Financial Solutions, Inc. (NYSE:BR - Get Free Report) shares saw an uptick in trading volume on Monday . 1,480,848 shares changed hands during mid-day trading, an increase of 166% from the previous session's volume of 556,979 shares.The stock last traded at $254.10 and had previously closed at $253.69.

Wall Street Analyst Weigh In

A number of brokerages have commented on BR. Wall Street Zen upgraded Broadridge Financial Solutions from a "hold" rating to a "buy" rating in a report on Friday, May 9th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $259.00 price target on shares of Broadridge Financial Solutions in a research report on Monday, May 19th. Finally, Needham & Company LLC started coverage on shares of Broadridge Financial Solutions in a research note on Tuesday, May 6th. They issued a "buy" rating and a $300.00 price target on the stock. Five analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $250.83.

Broadridge Financial Solutions Price Performance

The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 1.44. The stock has a market capitalization of $29.66 billion, a PE ratio of 37.98 and a beta of 0.94. The stock's 50-day moving average is $240.60 and its 200 day moving average is $237.22.

Broadridge Financial Solutions (NYSE:BR - Get Free Report) last released its quarterly earnings data on Thursday, May 1st. The business services provider reported $2.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.41 by $0.03. Broadridge Financial Solutions had a return on equity of 44.82% and a net margin of 11.65%. The firm had revenue of $1.81 billion during the quarter, compared to analysts' expectations of $1.86 billion. During the same quarter last year, the firm earned $2.23 earnings per share. The business's revenue for the quarter was up 5.0% on a year-over-year basis. As a group, equities analysts predict that Broadridge Financial Solutions, Inc. will post 8.53 earnings per share for the current year.

Broadridge Financial Solutions Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 2nd. Investors of record on Thursday, June 12th were paid a $0.88 dividend. This represents a $3.52 dividend on an annualized basis and a dividend yield of 1.39%. The ex-dividend date was Thursday, June 12th. Broadridge Financial Solutions's payout ratio is 52.93%.

Insider Activity

In other news, VP Thomas P. Carey sold 3,607 shares of Broadridge Financial Solutions stock in a transaction dated Tuesday, May 13th. The stock was sold at an average price of $237.26, for a total value of $855,796.82. Following the transaction, the vice president directly owned 6,077 shares in the company, valued at approximately $1,441,829.02. The trade was a 37.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Hope M. Jarkowski sold 1,068 shares of the company's stock in a transaction that occurred on Wednesday, May 7th. The stock was sold at an average price of $235.22, for a total value of $251,214.96. Following the transaction, the insider owned 1,070 shares of the company's stock, valued at approximately $251,685.40. This trade represents a 49.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 18,116 shares of company stock valued at $4,352,298. Insiders own 1.30% of the company's stock.

Hedge Funds Weigh In On Broadridge Financial Solutions

Large investors have recently bought and sold shares of the stock. Brighton Jones LLC bought a new position in shares of Broadridge Financial Solutions during the 4th quarter worth about $580,000. Sei Investments Co. raised its stake in shares of Broadridge Financial Solutions by 2.6% in the 4th quarter. Sei Investments Co. now owns 30,034 shares of the business services provider's stock valued at $6,790,000 after buying an additional 763 shares in the last quarter. Korea Investment CORP raised its stake in shares of Broadridge Financial Solutions by 15.9% in the 4th quarter. Korea Investment CORP now owns 88,400 shares of the business services provider's stock valued at $19,986,000 after buying an additional 12,149 shares in the last quarter. JPMorgan Chase & Co. raised its stake in shares of Broadridge Financial Solutions by 17.5% in the 4th quarter. JPMorgan Chase & Co. now owns 497,751 shares of the business services provider's stock valued at $112,537,000 after buying an additional 74,039 shares in the last quarter. Finally, UniSuper Management Pty Ltd raised its stake in shares of Broadridge Financial Solutions by 13.6% in the 4th quarter. UniSuper Management Pty Ltd now owns 11,937 shares of the business services provider's stock valued at $2,699,000 after buying an additional 1,430 shares in the last quarter. 90.03% of the stock is currently owned by institutional investors and hedge funds.

About Broadridge Financial Solutions

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.

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