Stock Traders Purchase High Volume of Brighthouse Financial Put Options (NASDAQ:BHF)

Key Points

• Unusual bearish options activity: Investors purchased 2,223 Brighthouse Financial put options, about 176% above the typical volume of 805 contracts.
• Mixed operating performance: Shares rose 0.6% to $52.23, while the company’s latest earnings missed analyst estimates and revenue fell 2% year over year.
• Analyst sentiment remains cautious: Eight analysts rate the stock Hold and two rate it Sell, resulting in a consensus “Reduce” rating and a $60.50 price target; institutional investors own 81.24% of shares.

Brighthouse Financial, Inc. (NASDAQ:BHF - Get Free Report) was the target of some unusual options trading on Tuesday. Investors acquired 2,223 put options on the company. This represents an increase of approximately 176% compared to the typical volume of 805 put options.

Brighthouse Financial Trading Up 0.6%

Shares of NASDAQ:BHF traded up $0.33 during trading on Tuesday, reaching $52.23. The stock had a trading volume of 101,828 shares, compared to its average volume of 682,762. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.48. The stock has a market cap of $3.00 billion, a P/E ratio of 4.17 and a beta of 0.87. The business has a fifty day moving average price of $62.05 and a 200-day moving average price of $61.83. Brighthouse Financial has a fifty-two week low of $42.07 and a fifty-two week high of $66.80.

Brighthouse Financial (NASDAQ:BHF - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $4.45 EPS for the quarter, missing the consensus estimate of $4.86 by ($0.41). Brighthouse Financial had a return on equity of 17.24% and a net margin of 12.49%.The firm had revenue of $1.62 billion during the quarter, compared to analysts' expectations of $2.18 billion. During the same period in the previous year, the firm posted $3.43 earnings per share. The firm's revenue was down 2.0% on a year-over-year basis. As a group, analysts anticipate that Brighthouse Financial will post 18.83 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. Wall Street Zen upgraded shares of Brighthouse Financial to a "hold" rating in a research report on Sunday, July 12th. Weiss Ratings restated a "sell (d+)" rating on shares of Brighthouse Financial in a research report on Friday, August 7th. Finally, Zacks Research raised shares of Brighthouse Financial from a "strong sell" rating to a "hold" rating in a report on Monday, May 18th. Eight equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Reduce" and a consensus price target of $60.50.

Institutional Investors Weigh In On Brighthouse Financial

A number of institutional investors have recently bought and sold shares of BHF. California State Teachers Retirement System grew its stake in shares of Brighthouse Financial by 5,899.3% during the 2nd quarter. California State Teachers Retirement System now owns 4,174,825 shares of the company's stock valued at $264,266,000 after buying an additional 4,105,237 shares during the period. Nykredit A S purchased a new stake in shares of Brighthouse Financial during the 2nd quarter worth about $170,000. Susquehanna Fundamental Investments LLC increased its position in Brighthouse Financial by 8.3% during the 2nd quarter. Susquehanna Fundamental Investments LLC now owns 82,230 shares of the company's stock worth $5,205,000 after purchasing an additional 6,328 shares in the last quarter. Hsbc Holdings PLC raised its holdings in Brighthouse Financial by 59.4% in the second quarter. Hsbc Holdings PLC now owns 865,171 shares of the company's stock valued at $54,895,000 after buying an additional 322,422 shares during the period. Finally, Mint Tower Capital Management B.V. acquired a new position in Brighthouse Financial during the second quarter valued at approximately $1,583,000. 81.24% of the stock is currently owned by hedge funds and other institutional investors.

Brighthouse Financial Company Profile

Brighthouse Financial, Inc is a U.S.-based life insurance company that specializes in retirement income solutions and annuity products. The firm was established in August 2017 as a spin-off from MetLife, Inc, and is headquartered in Charlotte, North Carolina. Since its separation, Brighthouse Financial has focused on providing products designed to help individuals and families manage retirement income needs, drawing on decades of experience in life insurance and annuity administration inherited from its parent company.

The company's core product offerings include fixed indexed annuities, which allow policyholders to participate in market-linked gains while protecting against downside market risk, and single premium immediate annuities, which provide guaranteed lifetime income.

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