BlackRock Inc. Makes New $1.47 Billion Investment in Broadridge Financial Solutions, Inc. $BR

Key Points

• BlackRock acquired 10.76 million Broadridge shares worth approximately $1.47 billion, giving it a 9.44% stake. Institutional investors now own about 90.03% of the company.
• Analysts maintain a generally favorable outlook, with a consensus rating of “Moderate Buy” and an average price target of $215.86, despite some recent target reductions.
• Broadridge exceeded quarterly earnings and revenue expectations, while raising its quarterly dividend to $1.09 per share, equivalent to a 2.5% annualized yield.

BlackRock Inc. acquired a new stake in Broadridge Financial Solutions, Inc. (NYSE:BR - Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The fund acquired 10,762,454 shares of the business services provider's stock, valued at approximately $1,473,918,000. BlackRock Inc. owned approximately 9.44% of Broadridge Financial Solutions at the end of the most recent reporting period.

Other institutional investors have also recently modified their holdings of the company. Norges Bank acquired a new position in Broadridge Financial Solutions in the fourth quarter valued at about $346,304,000. Van ECK Associates Corp grew its stake in Broadridge Financial Solutions by 110.6% during the fourth quarter. Van ECK Associates Corp now owns 1,475,283 shares of the business services provider's stock worth $329,239,000 after buying an additional 774,747 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in Broadridge Financial Solutions during the second quarter worth about $101,738,000. Deutsche Bank AG bought a new position in Broadridge Financial Solutions in the 2nd quarter valued at about $84,546,000. Finally, Pinebridge Investments LLC bought a new position in Broadridge Financial Solutions in the 4th quarter valued at about $126,553,000. 90.03% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on BR. UBS Group reaffirmed a "neutral" rating and set a $180.00 price target on shares of Broadridge Financial Solutions in a report on Monday. Royal Bank Of Canada lifted their price objective on shares of Broadridge Financial Solutions from $200.00 to $225.00 and gave the company an "outperform" rating in a research note on Wednesday, August 5th. DA Davidson lowered their price objective on shares of Broadridge Financial Solutions from $228.00 to $214.00 and set a "buy" rating for the company in a research report on Tuesday, May 5th. Needham & Company LLC cut their target price on Broadridge Financial Solutions from $255.00 to $230.00 and set a "buy" rating for the company in a research note on Friday, May 1st. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Broadridge Financial Solutions in a report on Friday, August 7th. Four investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $215.86.

Insider Buying and Selling at Broadridge Financial Solutions

In other news, insider Hope M. Jarkowski sold 1,966 shares of the company's stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $155.00, for a total transaction of $304,730.00. Following the completion of the transaction, the insider directly owned 1 shares in the company, valued at approximately $155. This represents a 99.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.10% of the company's stock.

Broadridge Financial Solutions Stock Up 1.1%

BR stock opened at $177.94 on Friday. The firm has a 50-day moving average price of $151.96 and a 200-day moving average price of $160.39. Broadridge Financial Solutions, Inc. has a 12 month low of $133.83 and a 12 month high of $264.10. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 1.15. The stock has a market capitalization of $20.29 billion, a P/E ratio of 18.50 and a beta of 0.87.

Broadridge Financial Solutions (NYSE:BR - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The business services provider reported $3.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.76 by $0.06. The company had revenue of $2.22 billion for the quarter, compared to analyst estimates of $2.17 billion. Broadridge Financial Solutions had a net margin of 15.04% and a return on equity of 40.25%. The firm's revenue was up 7.5% on a year-over-year basis. During the same period in the previous year, the firm posted $3.55 EPS. Broadridge Financial Solutions has set its FY 2027 guidance at 10.370-10.750 EPS. As a group, equities research analysts anticipate that Broadridge Financial Solutions, Inc. will post 10.54 EPS for the current fiscal year.

Broadridge Financial Solutions Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, October 5th. Shareholders of record on Thursday, September 3rd will be paid a dividend of $1.09 per share. The ex-dividend date of this dividend is Thursday, September 3rd. This is a boost from Broadridge Financial Solutions's previous quarterly dividend of $0.97. This represents a $4.36 dividend on an annualized basis and a dividend yield of 2.5%. Broadridge Financial Solutions's payout ratio is presently 45.32%.

About Broadridge Financial Solutions

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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