On July 28, 2023, it was reported that &LSV Asset Management had increased its stake in Brunswick Co. by 4.3% during the first quarter of the year. According to their Form 13F filing with the Securities and Exchange Commission (SEC), the firm now owned a total of 404,335 shares of Brunswick stock, representing an additional 16,700 shares acquired during the period. This equates to approximately 0.57% ownership of Brunswick Co., with a market value of $33,155,000 at the end of the reporting period.
Brunswick, listed under the ticker symbol BC on the New York Stock Exchange (NYSE), had recently announced its earnings results on April 27th. The company surpassed expectations by reporting earnings per share (EPS) of $2.57 for the quarter. This exceeded analysts’ consensus estimate by $0.21 per share. In addition to strong EPS performance, Brunswick’s revenue for the quarter reached $1.74 billion, slightly higher than analysts’ anticipated revenue expectation of $1.71 billion.
The impressive financial performance can be attributed to various factors contributing to Brunswick’s success in recent years. With a return on equity (ROE) standing at an impressive 36.65% and a healthy net margin of 8.97%, it is evident that Brunswick has been effectively capitalizing on opportunities within their industry.
It is worth noting that this quarter’s revenue growth was particularly noteworthy as it saw a year-over-year increase of 2.8%. This positive trend solidifies Brunswick’s position as a company capable of maintaining consistent growth even in challenging economic climates.
Looking ahead, sell-side analysts are optimistic about Brunswick Co.’s future prospects and have forecasted an earnings per share (EPS) value of 9.51 for the current fiscal year.
Apart from its financial achievements, Brunswick has also made headlines due to recent insider trading activities. Director Nancy E. Cooper sold 327 shares of Brunswick stock on May 1st, amounting to a total value of $28,197.21. Following the transaction, Cooper’s remaining shares amounted to 20,499, valuing at approximately $1,767,628.77. The sale was in compliance with legal requirements and disclosed through a filing with the SEC.
Coincidentally, CEO David M. Foulkes also sold 13,000 shares of Brunswick stock on May 5th at an average price of $81.40 per share, resulting in a significant total transaction value of $1,058,200.00. Foulkes now owns 241,957 shares in the company.
Collectively, insiders have sold a total of 14,636 shares over the course of the past three months, with a combined market value equivalent to $1,186,156. It is important to note that these insider transactions accounted for only 0.58% of the company’s stock ownership.
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Hedge Funds Increase Stake in Brunswick Co. as Confidence Grows
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”BC” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]On July 28, 2023, the financial market was abuzz with news about Brunswick Co., a company listed on the New York Stock Exchange (NYSE) under the ticker symbol BC. The article revealed that several hedge funds had made significant changes to their positions in the company in recent months.
CI Investments Inc., for instance, increased its stake in Brunswick by 16.0% during the fourth quarter of the previous year. The firm now owns 1,337 shares of Brunswick’s stock valued at $96,000 after acquiring an additional 184 shares. Similarly, Vanguard Personalized Indexing Management LLC grew its holdings in Brunswick by 13.8% during the same period, owning 11,278 shares worth $813,000 after purchasing an additional 1,370 shares.
Another notable investor, Van ECK Associates Corp., increased its position in Brunswick by 6.7% in the fourth quarter and currently owns 2,498 shares worth $180,000 after acquiring an additional 156 shares. Tectonic Advisors LLC also showed confidence in Brunswick’s potential and increased its position by 19.0% during the first quarter. The firm now holds 10,325 shares valued at $847,000 after buying an additional 1,646 shares.
Thrivent Financial for Lutherans was yet another hedge fund that demonstrated strong belief in Brunswick’s growth prospects. It boosted its holdings by 20.2% during the fourth quarter and now owns 42,019 shares worth $3,028,000 after adding an additional 7,062 shares to its portfolio.
These institutional investors collectively own a substantial proportion of Brunswick Co.’s stock—approximately 93.12%, indicating widespread confidence in the company’s future performance.
Turning to the stock’s trading information on Friday, July 28th—the day this article was published—NYSE BC opened at $85.55 per share. The article stated that the company has a market capitalization of $6.05 billion, a price-to-earnings (PE) ratio of 10.31, and a beta of 1.54.
These figures provide investors with an understanding of Brunswick’s valuation in relation to its earnings and the stock’s volatility compared to the broader market. The 50-day moving average price for BC was reported as $83.33, while the 200-day moving average stood at $82.87.
The article also disclosed some key financial metrics for Brunswick Co., including its debt-to-equity ratio of 1.17, which indicates the company’s level of indebtedness relative to shareholders’ equity. Furthermore, Brunswick boasts a quick ratio of 0.81 and a current ratio of 1.86, demonstrating its ability to meet short-term obligations.
Additionally, it is worth noting that Brunswick’s share price has experienced significant fluctuations over the past year. Its 52-week low was recorded at $64.55 with a high reaching $93.15.
Shifting focus towards recent insider activities, Nancy E. Cooper—an influential director within the company—sold 327 shares on Monday, May 1st, for an average price of $86.23 per share amounting to approximately $28,197.21 in total proceeds from the sale.
Following this transaction, Cooper holds 20,499 shares valued at around $1,767,628—a substantial investment that undoubtedly resonates her confidence in Brunswick’s future prospects.
Moreover, CEO David M. Foulkes sold 13,000 shares on Friday, May 5th at an average share price of $81.40—totaling roughly $1,058,200 in proceeds from the transaction.
Insider selling activity can indicate various factors such as personal portfolio diversification or changes in sentiment about the company’s future performance—information that may interest investors when making their own investment decisions.
Additionally, Brunswick recently announced a quarterly dividend to be paid on Friday, September 15th. Shareholders of record on Wednesday, August 23rd will receive a $0.40 dividend per share. The ex-dividend date for this dividend is Tuesday, August 22nd.
This represents an annualized dividend payout ratio of 19.28%, offering investors a yield of 1.87%. Dividends can be an attractive incentive for shareholders as they provide a tangible return on investment amidst potential market volatility.
Lastly, various research analysts have consistently maintained positive outlooks on Brunswick’s stock and issued favourable reports with increased price targets.
Truist Financial lowered its target price from $105.00 to $100.00 but maintained a “buy” rating on the stock in its research note dated Friday, July 14th. KeyCorp initiated coverage with an “overweight” rating and set a price target of $100.00 for the stock in its research note published on Wednesday, April 19th.
The article also mentioned that StockNews.com downgraded Brunswick from a “buy” rating to a “hold” rating in another note released recently. Stifel Nicolaus dropped its price target from $106 to
