The stock of Bright Horizons Family Solutions, Inc (NYSE: BFAM) has decreased by -12.76 when compared to last closing price of 132.83.Despite this, the company has seen a loss of -11.82% in its stock price over the last five trading days. seekingalpha.com reported 2024-11-05 that I downgrade Bright Horizons Family from buy to hold due to limited upside in the stock, despite strong fundamentals and growth potential. BFAM reported 11.4% revenue growth, surpassing estimates, with notable gains in backup care revenue and improved occupancy rates, driving EPS growth of 25.5% y/y. The 10% growth outlook remains intact, supported by strong volume and pricing in full-service segments and robust demand in backup dependent care.
Is It Worth Investing in Bright Horizons Family Solutions, Inc (NYSE: BFAM) Right Now?
The price-to-earnings ratio for Bright Horizons Family Solutions, Inc (NYSE: BFAM) is above average at 57.88x, Company’s 36-month beta value is 1.49.Analysts have differing opinions on the stock, with 3 analysts rating it as a “buy,” 2 as “overweight,” 4 as “hold,” and 0 as “sell.”
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The public float for BFAM is 57.46M, and currently, short sellers hold a 0.86% ratio of that floaft. The average trading volume of BFAM on November 06, 2024 was 374.68K shares.
BFAM’s Market Performance
BFAM stock saw a decrease of -11.82% in the past week, with a monthly decline of -14.99% and a quarterly a decrease of -11.55%. The volatility ratio for the week is 4.52%, and the volatility levels for the last 30 days are 2.57% for Bright Horizons Family Solutions, Inc (BFAM). The simple moving average for the past 20 days is -11.84% for BFAM’s stock, with a -1.92% simple moving average for the past 200 days.
Analysts’ Opinion of BFAM
Many brokerage firms have already submitted their reports for BFAM stocks, with Barclays repeating the rating for BFAM by listing it as a “Overweight.” The predicted price for BFAM in the upcoming period, according to Barclays is $125 based on the research report published on February 28, 2024 of the current year 2024.
UBS, on the other hand, stated in their research note that they expect to see BFAM reach a price target of $83, previously predicting the price at $82. The rating they have provided for BFAM stocks is “Neutral” according to the report published on October 23rd, 2023.
BMO Capital Markets gave a rating of “Market Perform” to BFAM, setting the target price at $99 in the report published on July 17th of the previous year.
BFAM Trading at -14.68% from the 50-Day Moving Average
After a stumble in the market that brought BFAM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -18.34% of loss for the given period.
Volatility was left at 2.57%, however, over the last 30 days, the volatility rate increased by 4.52%, as shares sank -15.18% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -15.49% lower at present.
During the last 5 trading sessions, BFAM fell by -11.82%, which changed the moving average for the period of 200-days by +15.38% in comparison to the 20-day moving average, which settled at $131.44. In addition, Bright Horizons Family Solutions, Inc saw 22.96% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at BFAM starting from Burke Mary Lou, who sale 800 shares at the price of $128.84 back on Nov 05 ’24. After this action, Burke Mary Lou now owns 30,225 shares of Bright Horizons Family Solutions, Inc, valued at $103,072 using the latest closing price.
MARY LOU BURKE, the Officer of Bright Horizons Family Solutions, Inc, proposed sale 800 shares at $128.84 during a trade that took place back on Nov 05 ’24, which means that MARY LOU BURKE is holding shares at $103,072 based on the most recent closing price.
Stock Fundamentals for BFAM
Current profitability levels for the company are sitting at:
- 0.09 for the present operating margin
- 0.22 for the gross margin
The net margin for Bright Horizons Family Solutions, Inc stands at 0.08. The total capital return value is set at 0.07. Equity return is now at value 9.09, with 3.02 for asset returns.
Based on Bright Horizons Family Solutions, Inc (BFAM), the company’s capital structure generated 0.57 points at debt to capital in total, while cash flow to debt ratio is standing at 0.17. The debt to equity ratio resting at 1.32. The interest coverage ratio of the stock is -9.83.
Currently, EBITDA for the company is 271.17 million with net debt to EBITDA at 9.34. When we switch over and look at the enterprise to sales, we see a ratio of 3.22. The receivables turnover for the company is 11.35for trailing twelve months and the total asset turnover is 0.67. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.61.
Conclusion
In a nutshell, Bright Horizons Family Solutions, Inc (BFAM) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
