Short Interest in Brookfield Business Corp (NYSE:BBUC) Grows By 160.1%

Key Points

• Short interest in Brookfield Business Corp (NYSE:BBUC) surged 160.1% in June, rising to 2.14 million shares by June 30. That still represents just 1.0% of the float, with a days-to-cover ratio of 1.9.
• Analyst sentiment is mixed but leans cautious, with an average rating of “Hold” and a consensus price target of $39.90. Recent actions included upgrades and downgrades, including TD Cowen initiating coverage at “Hold” with a $34 target.
• The stock has been under pressure after weak earnings, with shares trading at $29.62 versus a 52-week range of $28.29 to $38.25. Brookfield Business recently reported EPS of $0.19, missing expectations by a wide margin, even as it continued its quarterly dividend of $0.0625 per share.

Brookfield Business Corp (NYSE:BBUC - Get Free Report) was the recipient of a significant increase in short interest during the month of June. As of June 30th, there was short interest totaling 2,139,332 shares, an increase of 160.1% from the June 15th total of 822,471 shares. Currently, 1.0% of the company's stock are short sold. Based on an average daily volume of 1,135,344 shares, the days-to-cover ratio is presently 1.9 days.

Wall Street Analysts Forecast Growth

BBUC has been the topic of several recent analyst reports. Zacks Research upgraded shares of Brookfield Business from a "strong sell" rating to a "hold" rating in a research note on Tuesday, March 31st. Scotiabank restated an "outperform" rating on shares of Brookfield Business in a report on Monday, May 11th. National Bank Financial dropped their target price on shares of Brookfield Business from $44.00 to $42.00 and set an "outperform" rating on the stock in a research report on Tuesday, May 12th. Wall Street Zen lowered shares of Brookfield Business from a "buy" rating to a "hold" rating in a research note on Tuesday, June 16th. Finally, TD Cowen initiated coverage on shares of Brookfield Business in a research report on Tuesday, June 9th. They issued a "hold" rating and a $34.00 price target for the company. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $39.90.

Brookfield Business Stock Performance

Shares of Brookfield Business stock opened at $29.62 on Tuesday. The firm's fifty day simple moving average is $32.26 and its 200-day simple moving average is $33.66. The stock has a market capitalization of $6.13 billion, a price-to-earnings ratio of -65.83 and a beta of 1.25. Brookfield Business has a 12 month low of $28.29 and a 12 month high of $38.25. The company has a debt-to-equity ratio of 2.78, a current ratio of 1.43 and a quick ratio of 1.19.

Brookfield Business (NYSE:BBUC - Get Free Report) last released its quarterly earnings results on Friday, May 8th. The company reported $0.19 EPS for the quarter, missing the consensus estimate of $1.31 by ($1.12). The business had revenue of $6.44 billion during the quarter. Brookfield Business had a net margin of 1.28% and a return on equity of 2.33%. As a group, equities analysts forecast that Brookfield Business will post 5.54 earnings per share for the current year.

Brookfield Business Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th were paid a dividend of $0.0625 per share. The ex-dividend date was Friday, May 29th. This represents a $0.25 annualized dividend and a dividend yield of 0.8%. Brookfield Business's dividend payout ratio is -55.56%.

Hedge Funds Weigh In On Brookfield Business

A number of hedge funds and other institutional investors have recently made changes to their positions in BBUC. Franklin Resources Inc. increased its position in Brookfield Business by 7.1% in the 4th quarter. Franklin Resources Inc. now owns 7,302 shares of the company's stock valued at $262,000 after acquiring an additional 482 shares during the period. Signaturefd LLC grew its stake in shares of Brookfield Business by 29.4% in the 4th quarter. Signaturefd LLC now owns 3,018 shares of the company's stock valued at $108,000 after purchasing an additional 685 shares during the last quarter. Price T Rowe Associates Inc. MD grew its stake in shares of Brookfield Business by 7.9% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,587 shares of the company's stock valued at $488,000 after purchasing an additional 993 shares during the last quarter. Mariner LLC increased its holdings in shares of Brookfield Business by 14.3% in the fourth quarter. Mariner LLC now owns 12,099 shares of the company's stock valued at $434,000 after purchasing an additional 1,515 shares during the period. Finally, Bank of America Corp DE increased its holdings in shares of Brookfield Business by 6.8% in the third quarter. Bank of America Corp DE now owns 52,377 shares of the company's stock valued at $1,756,000 after purchasing an additional 3,348 shares during the period. Hedge funds and other institutional investors own 85.04% of the company's stock.

Brookfield Business Company Profile

Brookfield Business NYSE: BBUC is a publicly traded operating company affiliated with the Brookfield group that focuses on owning and managing a portfolio of industrial and business services companies. The company’s model centers on acquiring established businesses and applying active operational oversight, capital investment and strategic management to improve performance and support long‑term growth.

Brookfield Business’s activities span a range of sectors within the industrial and services landscape, including manufacturing, industrial services, specialty distribution and business‑to‑business service providers.

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