Traders Buy High Volume of Put Options on Brookfield (NYSE:BN)

Key Points

• Put-option activity surged: Traders bought 5,155 put options on Brookfield, roughly 234% above the typical volume, signaling unusually high hedging or bearish positioning.
• Analysts remain broadly positive: Brookfield has a “Moderate Buy” consensus rating and an average price target of $57.40, despite shares trading near their 52-week low at $37.43.
• Institutional ownership is substantial: Hedge funds and other institutions own 61.6% of Brookfield, with several major investors significantly increasing their stakes. The company also exceeded quarterly earnings expectations and announced a $0.07 quarterly dividend.

Brookfield Corporation (NYSE:BN - Get Free Report) was the recipient of unusually large options trading on Wednesday. Stock traders purchased 5,155 put options on the stock. This represents an increase of approximately 234% compared to the typical volume of 1,545 put options.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on BN. Scotiabank reaffirmed an "outperform" rating and set a $54.00 price target (up from $53.00) on shares of Brookfield in a research note on Friday, August 14th. Morgan Stanley set a $59.00 price target on Brookfield and gave the stock an "overweight" rating in a research note on Tuesday, July 21st. TD raised their price objective on Brookfield from $60.00 to $61.00 and gave the company a "buy" rating in a research note on Friday, August 14th. BMO Capital Markets raised Brookfield to a "strong-buy" rating in a report on Monday, July 27th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Brookfield in a report on Wednesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $57.40.

Institutional Investors Weigh In On Brookfield

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Royal Bank of Canada grew its stake in Brookfield by 40.5% in the 4th quarter. Royal Bank of Canada now owns 113,652,306 shares of the company's stock worth $5,215,504,000 after acquiring an additional 32,760,558 shares during the period. Capital World Investors boosted its holdings in shares of Brookfield by 45.0% during the fourth quarter. Capital World Investors now owns 99,069,016 shares of the company's stock worth $4,546,443,000 after purchasing an additional 30,755,354 shares during the last quarter. TD Asset Management Inc grew its position in shares of Brookfield by 46.3% in the fourth quarter. TD Asset Management Inc now owns 35,763,047 shares of the company's stock valued at $1,644,200,000 after purchasing an additional 11,323,960 shares during the period. Akre Capital Management LLC increased its stake in Brookfield by 39.7% in the fourth quarter. Akre Capital Management LLC now owns 26,843,633 shares of the company's stock valued at $1,231,854,000 after purchasing an additional 7,627,692 shares during the last quarter. Finally, Norges Bank acquired a new position in Brookfield in the fourth quarter valued at $1,227,555,000. 61.60% of the stock is currently owned by hedge funds and other institutional investors.

Brookfield Price Performance

Shares of Brookfield stock traded up $0.30 during trading on Wednesday, hitting $37.43. 556,999 shares of the company were exchanged, compared to its average volume of 5,044,228. Brookfield has a fifty-two week low of $37.02 and a fifty-two week high of $49.56. The company has a quick ratio of 1.22, a current ratio of 1.34 and a debt-to-equity ratio of 1.54. The firm has a 50 day moving average price of $42.04 and a 200 day moving average price of $43.01. The stock has a market capitalization of $91.76 billion, a price-to-earnings ratio of 68.01 and a beta of 1.53.

Brookfield (NYSE:BN - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.04. Brookfield had a return on equity of 3.93% and a net margin of 1.85%.The company had revenue of $1.66 billion during the quarter, compared to the consensus estimate of $1.66 billion. On average, equities analysts expect that Brookfield will post 2.93 earnings per share for the current fiscal year.

Brookfield Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Investors of record on Monday, September 14th will be paid a $0.07 dividend. The ex-dividend date of this dividend is Monday, September 14th. This represents a $0.28 annualized dividend and a yield of 0.7%. Brookfield's payout ratio is presently 50.91%.

About Brookfield

Brookfield Corporation NYSE: BN is a global investment and asset management company that owns and operates businesses across real estate, renewable power and transition, infrastructure, and private equity. Through its operating platforms and investments, the company is involved in assets such as office, retail, multifamily and logistics properties; hydroelectric, wind and solar facilities; transportation, data and utility infrastructure; and companies in industries including industrials, technology and business services.

Brookfield also maintains a significant interest in Brookfield Asset Management, an alternative asset manager that manages capital for institutional and individual investors.

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