Short Interest in Brookfield Corporation (NYSE:BN) Grows By 51.6%

Key Points

• Short interest in Brookfield Corporation rose by 51.6% in September, reaching 20.34 million shares, indicating increased bearish sentiment among investors.
• The company has announced a 3-for-2 stock split that will take effect on October 10th, with shares distributed after the market closes on October 9th.
• Despite a quarterly EPS of $0.88, Brookfield missed analysts' expectations, but reported revenues of $1.44 billion, aligning with forecasts.

Brookfield Corporation (NYSE:BN - Get Free Report) was the recipient of a significant increase in short interest in the month of September. As of September 15th, there was short interest totaling 20,340,000 shares, an increase of 51.6% from the August 31st total of 13,420,000 shares. Approximately 1.5% of the company's shares are short sold. Based on an average daily volume of 2,490,000 shares, the days-to-cover ratio is currently 8.2 days. Based on an average daily volume of 2,490,000 shares, the days-to-cover ratio is currently 8.2 days. Approximately 1.5% of the company's shares are short sold.

Brookfield Stock Performance

NYSE BN traded down $0.37 during trading on Tuesday, reaching $67.71. The company's stock had a trading volume of 1,561,519 shares, compared to its average volume of 2,618,518. The firm has a 50 day moving average price of $67.13 and a 200 day moving average price of $60.75. Brookfield has a 12 month low of $43.61 and a 12 month high of $74.20. The company has a current ratio of 1.29, a quick ratio of 1.18 and a debt-to-equity ratio of 1.50. The firm has a market capitalization of $111.67 billion, a price-to-earnings ratio of 157.47 and a beta of 1.75.

Brookfield shares are going to split on Friday, October 10th. The 3-2 split was announced on Thursday, August 7th. The newly issued shares will be distributed to shareholders after the closing bell on Thursday, October 9th.

Brookfield (NYSE:BN - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported $0.88 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.89 by ($0.01). Brookfield had a return on equity of 3.77% and a net margin of 1.11%.The company had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.44 billion. As a group, equities analysts anticipate that Brookfield will post 3.85 EPS for the current fiscal year.

Brookfield Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, September 29th. Shareholders of record on Friday, September 12th were issued a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Friday, September 12th. Brookfield's payout ratio is presently 83.72%.

Institutional Trading of Brookfield

Hedge funds have recently modified their holdings of the stock. Norges Bank acquired a new stake in Brookfield in the second quarter valued at approximately $1,040,160,000. Pershing Square Capital Management L.P. lifted its holdings in shares of Brookfield by 17.5% in the 1st quarter. Pershing Square Capital Management L.P. now owns 41,004,657 shares of the company's stock worth $2,149,054,000 after purchasing an additional 6,111,593 shares in the last quarter. Lone Pine Capital LLC bought a new stake in shares of Brookfield during the second quarter worth about $347,683,000. Canada Pension Plan Investment Board raised its stake in shares of Brookfield by 132.5% in the second quarter. Canada Pension Plan Investment Board now owns 6,540,631 shares of the company's stock worth $405,065,000 after purchasing an additional 3,727,628 shares during the last quarter. Finally, Goldman Sachs Group Inc. boosted its holdings in Brookfield by 83.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 7,699,178 shares of the company's stock worth $403,514,000 after acquiring an additional 3,500,003 shares during the last quarter. Institutional investors own 61.60% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have recently commented on BN. Cowen reiterated a "buy" rating on shares of Brookfield in a research report on Friday, August 8th. TD Securities increased their price target on shares of Brookfield from $74.00 to $82.00 and gave the company a "buy" rating in a research report on Tuesday, August 5th. The Goldman Sachs Group started coverage on shares of Brookfield in a report on Tuesday, September 2nd. They set a "buy" rating and a $78.00 price objective for the company. Royal Bank Of Canada lifted their price target on shares of Brookfield from $81.00 to $83.00 and gave the stock an "outperform" rating in a research report on Friday, August 8th. Finally, National Bankshares set a $82.00 price target on Brookfield and gave the stock an "outperform" rating in a research report on Tuesday, July 29th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, Brookfield presently has an average rating of "Buy" and an average price target of $76.70.

About Brookfield

Brookfield Corporation is an alternative asset manager and REIT/Real Estate Investment Manager firm focuses on real estate, renewable power, infrastructure and venture capital and private equity assets. It manages a range of public and private investment products and services for institutional and retail clients.

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