Morgan Stanley Issues Pessimistic Forecast for Bright Horizons Family Solutions (NYSE:BFAM) Stock Price

Key Points

• Morgan Stanley has reduced its target price for Bright Horizons Family Solutions (NYSE:BFAM) from $106.00 to $100.00, indicating a potential downside of 12.94% from the stock's previous close.
• Jefferies Financial Group also downgraded the stock from a "buy" to a "hold" rating, lowering its price target from $146.00 to $135.00.
• Bright Horizons has seen a year-over-year revenue growth of 6.9%, reporting $665.53 million in revenue during its latest quarter, surpassing analysts' expectations.

Bright Horizons Family Solutions (NYSE:BFAM - Get Free Report) had its target price cut by Morgan Stanley from $106.00 to $100.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm presently has an "underweight" rating on the stock. Morgan Stanley's price objective indicates a potential downside of 12.94% from the stock's previous close.

Separately, Jefferies Financial Group downgraded shares of Bright Horizons Family Solutions from a "buy" rating to a "hold" rating and lowered their price target for the company from $146.00 to $135.00 in a report on Monday, June 23rd. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating, five have issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat.com, Bright Horizons Family Solutions presently has a consensus rating of "Moderate Buy" and an average price target of $138.00.

Bright Horizons Family Solutions Stock Up 1.4%

Shares of BFAM stock opened at $114.86 on Monday. Bright Horizons Family Solutions has a 12 month low of $103.75 and a 12 month high of $141.90. The stock has a market cap of $6.58 billion, a P/E ratio of 41.46 and a beta of 1.30. The company has a current ratio of 0.60, a quick ratio of 0.60 and a debt-to-equity ratio of 0.66. The company has a 50 day simple moving average of $121.83 and a two-hundred day simple moving average of $122.08.

Bright Horizons Family Solutions (NYSE:BFAM - Get Free Report) last announced its earnings results on Monday, May 5th. The company reported $0.77 EPS for the quarter, beating analysts' consensus estimates of $0.63 by $0.14. Bright Horizons Family Solutions had a net margin of 5.91% and a return on equity of 14.62%. The business had revenue of $665.53 million during the quarter, compared to analysts' expectations of $664.34 million. During the same period in the prior year, the company earned $0.51 earnings per share. The firm's revenue was up 6.9% on a year-over-year basis. On average, research analysts expect that Bright Horizons Family Solutions will post 3.61 earnings per share for the current year.

Insider Activity at Bright Horizons Family Solutions

In other Bright Horizons Family Solutions news, COO Mary Lou Burke sold 1,000 shares of the business's stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $122.56, for a total value of $122,560.00. Following the sale, the chief operating officer owned 29,449 shares in the company, valued at $3,609,269.44. The trade was a 3.28% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Mary Ann Tocio sold 2,500 shares of the business's stock in a transaction on Thursday, May 29th. The stock was sold at an average price of $128.49, for a total transaction of $321,225.00. Following the completion of the sale, the director owned 20,257 shares in the company, valued at approximately $2,602,821.93. The trade was a 10.99% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 14,282 shares of company stock worth $1,848,993 in the last quarter. 1.21% of the stock is owned by company insiders.

Institutional Trading of Bright Horizons Family Solutions

Several hedge funds have recently modified their holdings of the company. SG Americas Securities LLC raised its stake in shares of Bright Horizons Family Solutions by 355.6% in the first quarter. SG Americas Securities LLC now owns 11,139 shares of the company's stock valued at $1,415,000 after acquiring an additional 8,694 shares during the period. Impax Asset Management Group plc raised its stake in shares of Bright Horizons Family Solutions by 13.8% in the first quarter. Impax Asset Management Group plc now owns 29,044 shares of the company's stock valued at $3,690,000 after acquiring an additional 3,514 shares during the period. Stephens Investment Management Group LLC raised its stake in shares of Bright Horizons Family Solutions by 9.9% in the first quarter. Stephens Investment Management Group LLC now owns 612,835 shares of the company's stock valued at $77,855,000 after acquiring an additional 55,115 shares during the period. Bessemer Group Inc. raised its stake in shares of Bright Horizons Family Solutions by 4.3% in the first quarter. Bessemer Group Inc. now owns 289,884 shares of the company's stock valued at $36,826,000 after acquiring an additional 11,967 shares during the period. Finally, Barclays PLC raised its stake in shares of Bright Horizons Family Solutions by 57.5% in the fourth quarter. Barclays PLC now owns 30,272 shares of the company's stock valued at $3,355,000 after acquiring an additional 11,057 shares during the period.

Bright Horizons Family Solutions Company Profile

Bright Horizons Family Solutions Inc provides early education and childcare, back-up care, educational advisory, and other workplace solutions services for employers and families in the United States, Puerto Rico, the United Kingdom, the Netherlands, Australia, and India. The company operates in three segments: Full Service Center-Based Child Care, Back-Up Care, and Educational Advisory and Other Services.

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