Broadridge Financial Solutions (NYSE:BR) Trading 11% Higher Following Better-Than-Expected Earnings

Key Points

• Broadridge shares jumped about 11% after the company reported quarterly EPS of $3.82, topping estimates by $0.06, while revenue of $2.22 billion exceeded forecasts and rose 7.5% year over year.
• The company announced a quarterly dividend of $0.975 per share, equivalent to an annualized $3.90 payout and a 2.2% yield.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $221.57, despite several firms recently lowering their targets; institutional investors own approximately 90% of the stock.

Broadridge Financial Solutions, Inc. (NYSE:BR - Get Free Report) shares shot up 11% during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $175.49 and last traded at $174.6950. 186,846 shares changed hands during trading, a decline of 87% from the average session volume of 1,419,583 shares. The stock had previously closed at $157.34.

The business services provider reported $3.82 earnings per share for the quarter, beating the consensus estimate of $3.76 by $0.06. The business had revenue of $2.22 billion during the quarter, compared to analysts' expectations of $2.17 billion. Broadridge Financial Solutions had a net margin of 15.03% and a return on equity of 40.14%. The business's revenue for the quarter was up 7.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $3.55 EPS. Broadridge Financial Solutions has set its FY 2027 guidance at 10.370-10.750 EPS.

Broadridge Financial Solutions Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Friday, June 12th were paid a dividend of $0.975 per share. The ex-dividend date of this dividend was Friday, June 12th. This represents a $3.90 annualized dividend and a yield of 2.2%. Broadridge Financial Solutions's dividend payout ratio (DPR) is 41.76%.

Analysts Set New Price Targets

Several brokerages have recently commented on BR. Weiss Ratings lowered Broadridge Financial Solutions from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, May 11th. DA Davidson reduced their price objective on shares of Broadridge Financial Solutions from $228.00 to $214.00 and set a "buy" rating on the stock in a report on Tuesday, May 5th. UBS Group lowered their target price on shares of Broadridge Financial Solutions from $250.00 to $165.00 and set a "neutral" rating for the company in a research note on Monday, May 4th. Needham & Company LLC reduced their price target on shares of Broadridge Financial Solutions from $255.00 to $230.00 and set a "buy" rating on the stock in a research note on Friday, May 1st. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and set a $200.00 price objective on shares of Broadridge Financial Solutions in a research report on Monday, June 22nd. Four investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $221.57.

Insiders Place Their Bets

In other Broadridge Financial Solutions news, insider Hope M. Jarkowski sold 1,966 shares of the business's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $155.00, for a total transaction of $304,730.00. Following the sale, the insider directly owned 1 shares in the company, valued at $155. This represents a 99.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. State Street Corp grew its stake in shares of Broadridge Financial Solutions by 6.7% in the fourth quarter. State Street Corp now owns 5,994,841 shares of the business services provider's stock worth $1,343,572,000 after acquiring an additional 375,699 shares in the last quarter. Geode Capital Management LLC increased its holdings in Broadridge Financial Solutions by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 3,354,869 shares of the business services provider's stock worth $746,062,000 after purchasing an additional 12,524 shares during the period. Barclays PLC increased its holdings in Broadridge Financial Solutions by 1.8% during the 4th quarter. Barclays PLC now owns 2,007,968 shares of the business services provider's stock worth $448,118,000 after purchasing an additional 35,169 shares during the period. Northern Trust Corp raised its position in Broadridge Financial Solutions by 6.6% in the 3rd quarter. Northern Trust Corp now owns 1,711,824 shares of the business services provider's stock valued at $407,705,000 after purchasing an additional 105,696 shares in the last quarter. Finally, Norges Bank acquired a new stake in Broadridge Financial Solutions in the 4th quarter valued at about $346,304,000. Hedge funds and other institutional investors own 90.03% of the company's stock.

Broadridge Financial Solutions Stock Up 10.5%

The firm has a 50 day moving average price of $146.94 and a 200-day moving average price of $164.00. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.97. The firm has a market cap of $20.11 billion, a PE ratio of 18.62 and a beta of 0.87.

Broadridge Financial Solutions Company Profile

Broadridge Financial Solutions is a global fintech company that provides technology-driven solutions and outsourcing services to the financial services industry. The firm's core offerings center on investor communications, securities processing and post-trade services, and technology platforms that support capital markets and wealth management operations. Broadridge positions itself as a provider of mission-critical infrastructure that helps financial institutions manage regulatory requirements, investor engagement and operational complexity.

Products and services include proxy and shareholder communications, investor disclosure and digital communications, proxy voting and tabulation, clearing and settlement support, trade processing and reconciliation, and a range of software-as-a-service platforms for wealth and asset managers.

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