Brookfield Business (NYSE:BBUC) Reaches New 1-Year Low - What's Next?

Key Points

• Brookfield Business shares hit a new 52-week low, falling to $25.14 during Monday trading and remaining well below their 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans toward caution: the stock has a consensus “Hold” rating and an average price target of $39.20, with recent downgrades and a “sell” rating from Weiss Ratings.
• The company reported quarterly revenue of $6.50 billion and earnings of $0.18 per share, while announcing a quarterly dividend of $0.0625, equivalent to a 1.0% annualized yield.

Brookfield Business Corp (NYSE:BBUC - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $25.14 and last traded at $25.9250, with a volume of 610138 shares trading hands. The stock had previously closed at $25.70.

Wall Street Analyst Weigh In

BBUC has been the subject of several research analyst reports. Weiss Ratings reissued a "sell (d)" rating on shares of Brookfield Business in a research report on Wednesday, August 5th. Scotiabank set a $40.50 price target on Brookfield Business in a research report on Friday, July 24th. Wall Street Zen lowered Brookfield Business from a "buy" rating to a "hold" rating in a report on Sunday, August 2nd. Finally, TD Cowen reduced their price objective on Brookfield Business from $34.00 to $32.00 and set a "hold" rating for the company in a research report on Tuesday, August 4th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $39.20.

Brookfield Business Trading Down 0.1%

The company has a quick ratio of 1.22, a current ratio of 1.44 and a debt-to-equity ratio of 2.92. The firm has a market capitalization of $5.31 billion, a price-to-earnings ratio of -65.86 and a beta of 1.25. The business has a 50-day moving average of $28.90 and a two-hundred day moving average of $31.30.

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

Brookfield Business Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Investors 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 is Monday, August 31st. Brookfield Business's dividend payout ratio is presently -64.10%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. TD Waterhouse Canada Inc. acquired a new stake in shares of Brookfield Business during the 2nd quarter valued at about $23,247,000. The Manufacturers Life Insurance Company acquired a new position in Brookfield Business in the second quarter worth about $2,283,000. Los Angeles Capital Management LLC acquired a new position in Brookfield Business in the fourth quarter worth about $1,655,000. Citadel Advisors LLC bought a new position in Brookfield Business during the second quarter worth about $1,140,000. Finally, Tidal Investments LLC bought a new position in Brookfield Business during the second quarter worth about $529,000. 85.04% of the stock is owned by institutional investors.

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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