Brookfield Asset Management (NYSE:BAM) Stock Price Down 5.1% - What's Next?

Brookfield Asset Management Ltd. (NYSE:BAM) saw its shares decline by 5.1% during midday trading on Thursday. The stock hit a low of $49.92 before closing at $51.20, with a total volume of 402,479 shares traded. This represents a significant drop of 68% compared to its average trading volume of 1,239,891 shares, with the previous day’s closing price at $53.97.

Wall Street Analysts Forecast Growth

A number of financial analysts have shared their insights regarding BAM. BMO Capital Markets recently raised their target price from $50.00 to $53.00 while maintaining a "market perform" rating. Conversely, Keefe, Bruyette & Woods slightly decreased their target price from $57.00 to $56.00, giving an "underperform" rating. Meanwhile, Scotiabank also lowered its target price from $63.00 to $62.50 but retained an "outperform" rating.

StockNews.com downgraded the stock from a "hold" to a "sell" rating earlier in January. In contrast, Goldman Sachs raised its target price from $57.00 to $63.00 and offered a "buy" rating. Overall, three analysts have rated Brookfield Asset Management as a sell, four as a hold, eight as a buy, and one as a strong buy. According to MarketBeat data, BAM holds a consensus rating of "Hold" with an average price target of $56.71.

Brookfield Asset Management Price Performance

The company’s pricing metrics reveal a 50-day simple moving average of $56.50 and a 200-day simple moving average of $52.70. With a market cap of $21.60 billion, Brookfield operates with a P/E ratio of 36.93, a price-to-earnings-growth ratio of 1.92, and a beta value of 1.46. In its latest quarterly earnings report, released on February 12, Brookfield reported earnings per share (EPS) of $0.40, surpassing the analysts' consensus estimate of $0.39. The financial services provider exhibited an impressive return on equity of 81.16% and a net margin of 54.47%. Analysts expect Brookfield Asset Management to achieve an EPS of 1.7 for the current fiscal year.

Brookfield Asset Management Increases Dividend

The company also announced a quarterly dividend, which is set for payment on Monday, March 31. Shareholders who were on record as of Friday, February 28, will receive a dividend of $0.4375, representing an annualized rate of $1.75 and a yield of 3.59%. This is an increase from the previous quarterly dividend of $0.38, although the dividend payout ratio currently stands at 132.58%.

Institutional Inflows and Outflows

Recent movements from institutional investors reflect modifications in their holdings of Brookfield shares. Geode Capital Management increased its position by 11.6% in Q3 and now owns 1,611,859 shares valued at around $77 million. Avior Wealth Management made a significant jump, increasing its holdings by 2,857.1%, acquiring 10,350 shares valued at $489,000.

Laffer Tengler Investments also boosted its position by 24.2%, now holding 147,773 shares worth $8 million. Tacita Capital increased its holdings by 19.3%, acquiring 47,767 shares valued at $2.58 million, while Charles Schwab Investment Management raised its stake by 5.8%, now owning 834,929 shares valued at approximately $39.5 million. Approximately 68.41% of Brookfield's stock is held by institutional investors.

Brookfield Asset Management Company Profile

Brookfield Asset Management Ltd. is a firm specializing in alternative asset management, with a focus on real estate investment. Their operations include renewable power sources such as hydroelectric, wind, and solar energy as well as services in infrastructure encompassing utilities, transportation, midstream, and data sectors.

Final Thoughts

Given the mixed analyst ratings and recent market performance, investors might be considering the next steps regarding Brookfield Asset Management. Stay updated with the latest news and analyst opinions for informed decisions.

Brookfield, Stock, Analysts