Brookfield Business Partners (NYSE:BBU) Shares Gap Up After Dividend Announcement

Key Points

• Brookfield Business Partners shares gapped up to $26.00 following the announcement of a $0.0625 dividend, leading to a current yield of 1.0% and an annualized dividend of $0.25.
• Multiple brokerage firms have adjusted their price targets on BBU, with CIBC lowering it from $34.00 to $30.00, while Scotiabank raised it from $29.00 to $31.00, reflecting varied analyst outlooks.
• The company's most recent earnings report revealed an EPS of $1.12, which fell short of analysts' expectations by $0.14 and indicated a debt-to-equity ratio of 2.97 and a market cap of $2.13 billion.

Shares of Brookfield Business Partners L.P. (NYSE:BBU - Get Free Report) gapped up before the market opened on Friday following a dividend announcement from the company. The stock had previously closed at $24.15, but opened at $26.00. Brookfield Business Partners shares last traded at $23.73, with a volume of 5,175 shares.

The newly announced dividend which will be paid on Monday, September 29th. Stockholders of record on Friday, August 29th will be paid a dividend of $0.0625 per share. This represents a $0.25 dividend on an annualized basis and a dividend yield of 1.1%. Brookfield Business Partners's dividend payout ratio is -73.53%.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on BBU. Royal Bank Of Canada started coverage on Brookfield Business Partners in a research note on Wednesday, June 18th. They issued an "outperform" rating and a $33.00 price objective on the stock. National Bankshares reduced their price objective on Brookfield Business Partners from $36.00 to $32.00 and set an "outperform" rating for the company in a research note on Wednesday, April 30th. Wall Street Zen cut Brookfield Business Partners from a "buy" rating to a "hold" rating in a research report on Saturday, July 26th. CIBC dropped their target price on Brookfield Business Partners from $34.00 to $30.00 and set an "outperformer" rating on the stock in a research report on Monday, April 28th. Finally, Scotiabank lifted their price objective on Brookfield Business Partners from $29.00 to $31.00 and gave the stock an "outperform" rating in a report on Friday, July 4th. One equities research analyst has rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat, Brookfield Business Partners presently has an average rating of "Moderate Buy" and an average price target of $32.00.

Brookfield Business Partners Stock Performance

The stock's 50 day moving average price is $25.44 and its two-hundred day moving average price is $23.74. The firm has a market capitalization of $2.11 billion, a PE ratio of -183.03 and a beta of 1.38. The company has a current ratio of 1.48, a quick ratio of 1.21 and a debt-to-equity ratio of 2.97.

Hedge Funds Weigh In On Brookfield Business Partners

Institutional investors have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp increased its stake in shares of Brookfield Business Partners by 11.7% during the 1st quarter. Bank of New York Mellon Corp now owns 19,802 shares of the business services provider's stock worth $465,000 after purchasing an additional 2,078 shares during the last quarter. Gold Investment Management Ltd. raised its stake in shares of Brookfield Business Partners by 20.9% during the first quarter. Gold Investment Management Ltd. now owns 39,309 shares of the business services provider's stock worth $921,000 after buying an additional 6,791 shares during the last quarter. The Manufacturers Life Insurance Company grew its holdings in Brookfield Business Partners by 2.8% during the fourth quarter. The Manufacturers Life Insurance Company now owns 41,794 shares of the business services provider's stock valued at $987,000 after purchasing an additional 1,146 shares during the period. K2 Principal Fund L.P. boosted its holdings in shares of Brookfield Business Partners by 5.8% in the fourth quarter. K2 Principal Fund L.P. now owns 52,385 shares of the business services provider's stock valued at $1,227,000 after buying an additional 2,880 shares during the period. Finally, Russell Investments Group Ltd. lifted its position in shares of Brookfield Business Partners by 64.7% in the fourth quarter. Russell Investments Group Ltd. now owns 63,017 shares of the business services provider's stock worth $1,485,000 after purchasing an additional 24,755 shares in the last quarter. Institutional investors and hedge funds own 85.04% of the company's stock.

Brookfield Business Partners Company Profile

Brookfield Business Partners L.P. is a private equity firm specializing in acquisition. The firm typically invests in business services, infrastructure services, construction, energy, and industrials sector. It prefers to take majority stake in companies. The firm seeks returns of at least 15% on its investments.