Stock Traders Buy Large Volume of Brookfield Put Options (NYSE:BN)

Key Points

• Unusual bearish options activity: Investors bought 5,612 Brookfield put options, about 185% above the typical daily volume of 1,967.
• Brookfield shares closed at $36.84, near their 52-week low of $35.69 and below their 50-day and 200-day moving averages. The company recently exceeded quarterly EPS expectations, reporting $0.66 versus the $0.62 consensus estimate.
• Analysts remain broadly positive, with a “Moderate Buy” consensus rating and an average price target of $57.40, while institutional investors own 61.6% of the stock.

Brookfield Corporation (NYSE:BN - Get Free Report) was the recipient of some unusual options trading activity on Friday. Stock investors acquired 5,612 put options on the stock. This is an increase of approximately 185% compared to the typical daily volume of 1,967 put options.

Brookfield Stock Performance

NYSE BN traded up $0.07 during trading on Friday, hitting $36.84. The company's stock had a trading volume of 883,215 shares, compared to its average volume of 5,089,603. Brookfield has a 52 week low of $35.69 and a 52 week high of $49.56. The firm has a market cap of $90.32 billion, a P/E ratio of 66.97 and a beta of 1.56. The firm has a 50 day moving average price of $40.09 and a 200 day moving average price of $42.52. The company has a quick ratio of 1.22, a current ratio of 1.34 and a debt-to-equity ratio of 1.54.

Brookfield (NYSE:BN - Get Free Report) last announced its earnings results on Thursday, August 13th. The company reported $0.66 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.62 by $0.04. Brookfield had a net margin of 1.85% and a return on equity of 3.93%. The business had revenue of $1.66 billion for the quarter, compared to analyst estimates of $1.66 billion. Equities research analysts forecast that Brookfield will post 2.93 earnings per share for the current fiscal year.

Brookfield Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 29th. Stockholders of record on Monday, September 14th were given a dividend of $0.07 per share. The ex-dividend date of this dividend was Monday, September 14th. This represents a $0.28 dividend on an annualized basis and a dividend yield of 0.8%. Brookfield's dividend payout ratio is currently 50.91%.

Hedge Funds Weigh In On Brookfield

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Meadow Creek Wealth Advisors LLC increased its stake in shares of Brookfield by 2.3% in the 1st quarter. Meadow Creek Wealth Advisors LLC now owns 10,308 shares of the company's stock valued at $417,000 after buying an additional 234 shares during the period. State of Wyoming lifted its stake in shares of Brookfield by 6.0% during the first quarter. State of Wyoming now owns 5,151 shares of the company's stock valued at $208,000 after acquiring an additional 290 shares during the period. Central Pacific Bank Trust Division boosted its holdings in Brookfield by 2.6% in the second quarter. Central Pacific Bank Trust Division now owns 11,800 shares of the company's stock valued at $503,000 after acquiring an additional 300 shares during the last quarter. West Family Investments Inc. boosted its holdings in Brookfield by 4.0% in the second quarter. West Family Investments Inc. now owns 7,890 shares of the company's stock valued at $336,000 after acquiring an additional 304 shares during the last quarter. Finally, Gould Asset Management LLC CA increased its position in Brookfield by 3.6% in the first quarter. Gould Asset Management LLC CA now owns 8,834 shares of the company's stock worth $358,000 after purchasing an additional 310 shares during the period. 61.60% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several research analysts have recently commented on the stock. BMO Capital Markets upgraded shares of Brookfield to a "strong-buy" rating in a research note on Monday, July 27th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Brookfield in a research note on Monday, September 21st. Scotia upped their price target on Brookfield from $53.00 to $54.00 and gave the stock a "sector outperform" rating in a research note on Friday, August 14th. Morgan Stanley set a $59.00 target price on Brookfield and gave the stock an "overweight" rating in a research report on Tuesday, July 21st. Finally, TD increased their price target on Brookfield from $60.00 to $61.00 and gave the company a "buy" rating in a report on Friday, August 14th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, Brookfield presently has an average rating of "Moderate Buy" and an average price target of $57.40.

About Brookfield

Brookfield Corporation NYSE: BN is a global investment and asset management company with interests in real assets and related operating businesses. Through its platforms and affiliates, the company invests in and manages assets across renewable power and energy transition, infrastructure, real estate, private equity, and other alternative investment strategies.

Brookfield's businesses develop, own, operate, and finance essential assets, including renewable energy facilities, utilities, transportation networks, data infrastructure, commercial and residential real estate, and industrial and business services companies.

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