Brookfield Asset Management Sees Unusually High Options Volume (NYSE:BAM)

Key Points

• Unusual options activity: Investors purchased 2,965 put options on Brookfield Asset Management, roughly 299% above the average volume of 744 contracts.
• Analyst sentiment remains cautious: The stock has an average “Hold” rating and a consensus price target of $59.32, despite several Buy and Outperform recommendations.
• Quarterly results beat expectations: Brookfield reported earnings of $0.44 per share and revenue of $1.49 billion, narrowly exceeding analyst estimates; it also declared a quarterly dividend of $0.5025, yielding about 4.0% annually.

Brookfield Asset Management Ltd. (NYSE:BAM - Get Free Report) TSE: BAM.A was the target of some unusual options trading activity on Wednesday. Investors purchased 2,965 put options on the stock. This represents an increase of approximately 299% compared to the average volume of 744 put options.

Wall Street Analysts Forecast Growth

BAM has been the subject of several research analyst reports. Piper Sandler restated a "neutral" rating and set a $50.00 price target (up from $48.00) on shares of Brookfield Asset Management in a research report on Monday, May 18th. Wall Street Zen upgraded Brookfield Asset Management from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Royal Bank Of Canada reduced their target price on Brookfield Asset Management from $74.00 to $65.00 and set an "outperform" rating for the company in a report on Monday, May 11th. Canadian Imperial Bank of Commerce set a $62.50 target price on Brookfield Asset Management in a research report on Monday, May 11th. Finally, Morgan Stanley set a $56.00 price target on Brookfield Asset Management and gave the stock an "equal weight" rating in a research note on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $59.32.

Hedge Funds Weigh In On Brookfield Asset Management

Institutional investors have recently added to or reduced their stakes in the stock. Zions Bancorporation National Association UT increased its stake in shares of Brookfield Asset Management by 241.3% in the 4th quarter. Zions Bancorporation National Association UT now owns 488 shares of the financial services provider's stock worth $26,000 after acquiring an additional 345 shares during the last quarter. Trust Co. of Vermont acquired a new position in shares of Brookfield Asset Management during the 2nd quarter valued at about $25,000. Compass Financial Management LLC acquired a new position in shares of Brookfield Asset Management during the 2nd quarter valued at about $27,000. Allied Private Wealth LLC purchased a new stake in shares of Brookfield Asset Management in the second quarter valued at about $40,000. Finally, Allworth Financial LP grew its holdings in shares of Brookfield Asset Management by 47.8% in the fourth quarter. Allworth Financial LP now owns 1,029 shares of the financial services provider's stock valued at $54,000 after purchasing an additional 333 shares during the period. Hedge funds and other institutional investors own 68.41% of the company's stock.

Brookfield Asset Management Price Performance

Shares of NYSE:BAM traded up $0.58 during midday trading on Wednesday, hitting $50.24. The company's stock had a trading volume of 362,103 shares, compared to its average volume of 3,169,820. The company has a market cap of $82.31 billion, a P/E ratio of 29.28, a price-to-earnings-growth ratio of 2.11 and a beta of 1.26. Brookfield Asset Management has a 12-month low of $42.20 and a 12-month high of $62.57. The business's 50 day simple moving average is $49.23 and its 200 day simple moving average is $47.83. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.75 and a current ratio of 0.75.

Brookfield Asset Management (NYSE:BAM - Get Free Report) TSE: BAM.A last announced its quarterly earnings data on Wednesday, August 5th. The financial services provider reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.01. Brookfield Asset Management had a net margin of 48.89% and a return on equity of 31.50%. The company had revenue of $1.49 billion during the quarter, compared to analysts' expectations of $1.47 billion. On average, analysts forecast that Brookfield Asset Management will post 1.78 EPS for the current year.

Brookfield Asset Management Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 29th. Stockholders of record on Monday, August 31st will be given a $0.5025 dividend. The ex-dividend date is Monday, August 31st. This represents a $2.01 dividend on an annualized basis and a dividend yield of 4.0%. Brookfield Asset Management's dividend payout ratio is 116.86%.

Brookfield Asset Management Company Profile

Brookfield Asset Management is a global alternative asset manager headquartered in Toronto, Canada, that specializes in investments in real assets and related private equity and credit strategies. The firm acquires, manages and develops assets in sectors such as real estate, renewable power, infrastructure and private equity, seeking long-term value through active asset management and operational improvements. Brookfield structures and manages commingled funds, listed partnerships and separate accounts for institutional and retail investors.

The company's products and services include fund management across equity and debt strategies, direct asset ownership and operations, property and facilities management, and capital markets solutions.

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