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

Key Points

• Brighthouse Financial saw unusually heavy put-option activity: Investors purchased 5,948 put options, roughly 440% above the average daily volume of 1,101, signaling increased downside hedging or bearish interest.
• Analyst sentiment remains cautious: Nine analysts rate BHF as a Hold and one rates it Sell, giving the stock an average “Reduce” rating and a $60.50 price target.
• Shares traded at $50.05 after a weak earnings report: Brighthouse Financial missed quarterly EPS and revenue expectations, while its stock remained below both its 50-day and 200-day moving averages. Institutional investors own 81.24% of the company.

Brighthouse Financial, Inc. (NASDAQ:BHF - Get Free Report) was the target of unusually large options trading on Friday. Stock investors bought 5,948 put options on the stock. This represents an increase of approximately 440% compared to the average daily volume of 1,101 put options.

Wall Street Analyst Weigh In

BHF has been the subject of a number of research analyst reports. Weiss Ratings downgraded shares of Brighthouse Financial from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, September 10th. Wall Street Zen upgraded shares of Brighthouse Financial to a "hold" rating in a research note on Sunday, July 12th. Nine investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Brighthouse Financial currently has an average rating of "Reduce" and an average target price of $60.50.

Brighthouse Financial Stock Performance

Shares of NASDAQ BHF traded up $0.66 during midday trading on Friday, reaching $50.05. The company had a trading volume of 149,708 shares, compared to its average volume of 708,476. The business's 50-day simple moving average is $57.75 and its 200 day simple moving average is $60.41. The stock has a market cap of $2.88 billion, a P/E ratio of 3.98, a P/E/G ratio of 0.65 and a beta of 0.84. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 0.48. Brighthouse Financial has a 1 year low of $44.51 and a 1 year high of $66.80.

Brighthouse Financial (NASDAQ:BHF - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $4.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.86 by ($0.41). The company had revenue of $1.62 billion for the quarter, compared to analysts' expectations of $2.18 billion. Brighthouse Financial had a net margin of 12.49% and a return on equity of 17.24%. The business's revenue for the quarter was down 2.0% on a year-over-year basis. During the same period in the previous year, the business earned $3.43 earnings per share. On average, analysts forecast that Brighthouse Financial will post 18.91 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Brighthouse Financial

A number of hedge funds and other institutional investors have recently made changes to their positions in BHF. Sequoia Financial Advisors LLC raised its position in shares of Brighthouse Financial by 41.0% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 7,241 shares of the company's stock worth $458,000 after purchasing an additional 2,106 shares during the last quarter. Maven Securities LTD acquired a new stake in Brighthouse Financial during the 2nd quarter valued at approximately $1,914,000. Nykredit A S acquired a new position in Brighthouse Financial during the 2nd quarter worth $170,000. Susquehanna Fundamental Investments LLC lifted its position in shares of Brighthouse Financial by 8.3% in the 2nd quarter. Susquehanna Fundamental Investments LLC now owns 82,230 shares of the company's stock worth $5,205,000 after buying an additional 6,328 shares during the last quarter. Finally, Hsbc Holdings PLC grew its position in shares of Brighthouse Financial by 59.4% during the second quarter. Hsbc Holdings PLC now owns 865,171 shares of the company's stock worth $54,895,000 after acquiring an additional 322,422 shares during the last quarter. Hedge funds and other institutional investors own 81.24% of the company's stock.

About Brighthouse Financial

Brighthouse Financial, Inc is a U.S.-based insurance company focused on helping individuals achieve financial security through annuity and life insurance products. The company serves retail customers, as well as institutions and distribution partners, through a network that includes independent agents, banks, broker-dealers and other financial professionals.

Brighthouse Financial offers fixed, indexed and variable annuities designed to provide retirement income, tax-deferred growth and death-benefit features.

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