Brookfield Business (NYSE:BBUC) Hits New 1-Year Low - Here's Why

Key Points

• Brookfield Business shares hit a new 52-week low, falling to $24.80 and trading about 1.5% lower, well below their 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans toward caution: the consensus rating is “Hold”, with an average price target of $39.20 after TD Cowen and Wall Street Zen downgraded or reduced their outlooks.
• The company reported quarterly revenue of $6.50 billion and earnings of $0.18 per share, while declaring a quarterly dividend of $0.0625, equivalent to a 1.0% annualized yield.

Brookfield Business Corp (NYSE:BBUC - Get Free Report)'s stock price reached a new 52-week low during trading on Tuesday. The company traded as low as $24.80 and last traded at $24.9350, with a volume of 36616 shares changing hands. The stock had previously closed at $25.33.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. TD Cowen lowered their price objective on Brookfield Business from $34.00 to $32.00 and set a "hold" rating on the stock in a research report on Tuesday, August 4th. Scotiabank set a $40.50 price target on Brookfield Business in a report on Friday, July 24th. Weiss Ratings upgraded Brookfield Business from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday. Finally, Wall Street Zen lowered shares of Brookfield Business from a "buy" rating to a "hold" rating in a report on Sunday, August 2nd. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $39.20.

Brookfield Business Trading Down 1.5%

The firm has a market cap of $5.16 billion, a P/E ratio of -63.96 and a beta of 1.25. The stock has a 50 day simple moving average of $28.27 and a 200-day simple moving average of $30.95. The company has a current ratio of 1.44, a quick ratio of 1.22 and a debt-to-equity ratio of 2.92.

Brookfield Business (NYSE:BBUC - Get Free Report) last posted its earnings results on Friday, July 31st. The company reported $0.18 earnings per share for the quarter. Brookfield Business had a net margin of 1.13% and a return on equity of 2.05%. The firm had revenue of $6.50 billion during the quarter. On average, equities research analysts expect that Brookfield Business Corp will post 5.31 EPS for the current fiscal year.

Brookfield Business Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Monday, August 31st will be paid a $0.0625 dividend. This represents a $0.25 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Monday, August 31st. Brookfield Business's dividend payout ratio (DPR) is presently -64.10%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in BBUC. Citadel Advisors LLC bought a new position in Brookfield Business during the second quarter valued at $1,140,000. The Manufacturers Life Insurance Company purchased a new stake in shares of Brookfield Business in the second quarter valued at $2,283,000. Los Angeles Capital Management LLC bought a new stake in shares of Brookfield Business in the 4th quarter worth about $1,655,000. TD Waterhouse Canada Inc. purchased a new position in shares of Brookfield Business during the 2nd quarter worth about $23,247,000. Finally, State Street Corp purchased a new position in shares of Brookfield Business during the 2nd quarter worth about $29,617,000. Institutional investors own 85.04% of the company's stock.

About Brookfield Business

Brookfield Business Corporation NYSE: BBUC is a publicly traded holding company affiliated with Brookfield Asset Management. It owns and operates a diversified portfolio of businesses with a focus on essential services and industries that may benefit from long-term demand and operational improvement.

The company's principal activities span business services, infrastructure services and industrial operations. Its investments have included healthcare services, residential mortgage insurance, construction and infrastructure-related services, and other industrial and service businesses.

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