Broadridge Financial Solutions (NYSE:BR) Trading Up 11% on Better-Than-Expected Earnings

Broadridge Financial Solutions, Inc. (NYSE:BR)’s stock price rose 11% during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $175.49 and last traded at $174.6950. 186,846 shares changed hands during trading, a decline of 87% from the average session volume of 1,419,583 shares. The stock had previously closed at $157.34.

The business services provider reported $3.82 earnings per share for the quarter, beating analysts’ consensus estimates of $3.76 by $0.06. The business had revenue of $2.22 billion for the quarter, compared to analyst estimates of $2.17 billion. Broadridge Financial Solutions had a net margin of 15.03% and a return on equity of 40.14%. The company’s revenue was up 7.5% on a year-over-year basis. During the same period last year, the business earned $3.55 EPS. Broadridge Financial Solutions has set its FY 2027 guidance at 10.370-10.750 EPS.

Broadridge Financial Solutions Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Friday, June 12th were issued a dividend of $0.975 per share. This represents a $3.90 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend was Friday, June 12th. Broadridge Financial Solutions’s payout ratio is 41.76%.

Analysts Set New Price Targets

BR has been the topic of a number of recent analyst reports. Needham & Company LLC dropped their price objective on Broadridge Financial Solutions from $255.00 to $230.00 and set a “buy” rating on the stock in a report on Friday, May 1st. Royal Bank Of Canada restated an “outperform” rating and set a $200.00 target price on shares of Broadridge Financial Solutions in a research note on Monday, June 22nd. DA Davidson lowered their price target on Broadridge Financial Solutions from $228.00 to $214.00 and set a “buy” rating for the company in a report on Tuesday, May 5th. Weiss Ratings lowered shares of Broadridge Financial Solutions from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, May 11th. Finally, UBS Group cut their price objective on shares of Broadridge Financial Solutions from $250.00 to $165.00 and set a “neutral” rating on the stock in a report on Monday, May 4th. Four analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $221.57.

Insider Activity

In other news, insider Hope M. Jarkowski sold 1,966 shares of Broadridge Financial Solutions stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $155.00, for a total transaction of $304,730.00. Following the sale, the insider owned 1 shares in the company, valued at approximately $155. The trade was a 99.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in BR. Norges Bank acquired a new stake in Broadridge Financial Solutions during the 4th quarter worth $346,304,000. Van ECK Associates Corp increased its stake in Broadridge Financial Solutions by 110.6% in the fourth quarter. Van ECK Associates Corp now owns 1,475,283 shares of the business services provider’s stock valued at $329,239,000 after purchasing an additional 774,747 shares during the period. Pinebridge Investments LLC acquired a new stake in shares of Broadridge Financial Solutions during the fourth quarter worth about $126,553,000. JPMorgan Chase & Co. grew its holdings in shares of Broadridge Financial Solutions by 52.8% during the fourth quarter. JPMorgan Chase & Co. now owns 1,403,997 shares of the business services provider’s stock worth $313,330,000 after buying an additional 485,297 shares during the last quarter. Finally, Amundi grew its holdings in shares of Broadridge Financial Solutions by 67.5% during the first quarter. Amundi now owns 1,059,021 shares of the business services provider’s stock worth $172,070,000 after buying an additional 426,587 shares during the last quarter. Hedge funds and other institutional investors own 90.03% of the company’s stock.

Broadridge Financial Solutions Price Performance

The stock has a market cap of $20.11 billion, a price-to-earnings ratio of 18.62 and a beta of 0.87. The company has a 50-day moving average of $146.94 and a 200-day moving average of $164.00. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.94 and a current ratio of 0.94.

About Broadridge Financial Solutions

Broadridge Financial Solutions is a global fintech company that provides technology-driven solutions and outsourcing services to the financial services industry. The firm’s core offerings center on investor communications, securities processing and post-trade services, and technology platforms that support capital markets and wealth management operations. Broadridge positions itself as a provider of mission-critical infrastructure that helps financial institutions manage regulatory requirements, investor engagement and operational complexity.

Products and services include proxy and shareholder communications, investor disclosure and digital communications, proxy voting and tabulation, clearing and settlement support, trade processing and reconciliation, and a range of software-as-a-service platforms for wealth and asset managers.