Brookfield Business Partners (NYSE:BBU) Shares Gap Up - Here's Why

Key Points

• Brookfield Business Partners L.P. saw its shares gap up from $28.48 to $31.34 ahead of trading, ultimately trading at $30.34 with a volume of 44,870 shares.
• Analysts have mixed opinions on the stock, with Scotiabank lowering their target price to $30.00 while Royal Bank of Canada increased theirs to $35.00; the consensus rating remains a "Buy" with an average target price of $32.50.
• The company announced a quarterly dividend of $0.0625 per share, representing a 0.8% yield, and has a high institutional ownership with 85.04% of the stock held by institutional investors.

Shares of Brookfield Business Partners L.P. (NYSE:BBU - Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $28.48, but opened at $31.34. Brookfield Business Partners shares last traded at $30.34, with a volume of 44,870 shares trading hands.

Analysts Set New Price Targets

Several analysts recently commented on the company. Scotiabank dropped their target price on Brookfield Business Partners from $31.00 to $30.00 and set an "outperform" rating on the stock in a report on Tuesday, August 5th. Royal Bank Of Canada raised their target price on Brookfield Business Partners from $33.00 to $35.00 and gave the company an "outperform" rating in a research report on Tuesday, August 5th. Desjardins lifted their price objective on Brookfield Business Partners from $31.00 to $34.00 and gave the stock a "buy" rating in a research report on Tuesday, August 5th. Finally, Wall Street Zen cut Brookfield Business Partners from a "buy" rating to a "hold" rating in a research note on Saturday, July 26th. Five equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Brookfield Business Partners currently has a consensus rating of "Buy" and an average target price of $32.50.

Brookfield Business Partners Price Performance

The company has a 50-day simple moving average of $26.39 and a two-hundred day simple moving average of $24.64. The stock has a market capitalization of $2.86 billion, a price-to-earnings ratio of -248.15 and a beta of 1.34. The company has a debt-to-equity ratio of 2.90, a current ratio of 1.67 and a quick ratio of 1.36.

Brookfield Business Partners Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Friday, August 29th will be given a dividend of $0.0625 per share. The ex-dividend date of this dividend is Friday, August 29th. This represents a $0.25 dividend on an annualized basis and a yield of 0.8%. Brookfield Business Partners's payout ratio is currently -192.31%.

Institutional Trading of Brookfield Business Partners

Several large investors have recently added to or reduced their stakes in BBU. Bank of America Corp DE grew its stake in shares of Brookfield Business Partners by 30,100.0% during the second quarter. Bank of America Corp DE now owns 1,208 shares of the business services provider's stock valued at $31,000 after purchasing an additional 1,204 shares during the last quarter. Rathbones Group PLC bought a new position in Brookfield Business Partners in the second quarter valued at $265,000. Northwest & Ethical Investments L.P. bought a new position in shares of Brookfield Business Partners in the 2nd quarter valued at about $391,000. Bank of New York Mellon Corp grew its position in shares of Brookfield Business Partners by 11.7% in the 1st quarter. Bank of New York Mellon Corp now owns 19,802 shares of the business services provider's stock valued at $465,000 after acquiring an additional 2,078 shares during the period. Finally, Gold Investment Management Ltd. grew its position in shares of Brookfield Business Partners by 20.9% in the 1st quarter. Gold Investment Management Ltd. now owns 39,309 shares of the business services provider's stock valued at $921,000 after acquiring an additional 6,791 shares during the period. 85.04% of the stock is owned by institutional investors.

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.

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