Investment firm Morgan Stanley has increased its price target for Brighthouse Financial (NASDAQ:BHF) from $42.00 to $46.00, as reported on Tuesday. Despite this upward revision, the brokerage maintains an underweight rating on the stock, indicating a cautious outlook on its performance.
This adjustment comes amid a series of recent assessments by various financial analysts regarding Brighthouse Financial. On August 11, 2023, Keefe, Bruyette & Woods revised its target price from $57.00 to $50.00 while assigning a market perform rating. Similarly, Piper Sandler lowered its target from $63.00 to $55.00 on July 3, 2023, also providing a neutral rating.
Wells Fargo & Company made a slight increase in its target price from $53.00 to $54.00 on July 10, 2023, with an equal weight rating. Meanwhile, JPMorgan Chase & Co. raised its target from $56.00 to $63.00 while maintaining an underweight stance as of July 8, 2023.
Overall, the consensus among analysts is mixed. One research analyst has placed a strong buy rating on the stock, while one has given it a buy rating. Five analysts have rated it as a hold, and two have suggested a sell. According to MarketBeat.com, Brighthouse Financial currently holds a consensus rating of “Hold” and a consensus target price of approximately $59.89.
Stock Performance and Financials
Brighthouse Financial opened at $48.61 on Tuesday, marking a decline of 4.8% from previous sessions. The stock has fluctuated between a twelve-month low of $42.07 and a high of $64.12. With a market capitalization of $2.78 billion, the company’s price-to-earnings ratio stands at 5.26, accompanied by a beta of 0.86.
In its most recent quarterly earnings report, released on August 7, 2023, Brighthouse Financial reported earnings per share of $3.43, falling short of the consensus estimate of $4.70 by $1.27. The firm generated revenue of $2.15 billion, which also fell below expectations of $2.21 billion. This represented a 2.8% decrease in revenue compared to the same period last year.
Analysts anticipate that Brighthouse Financial will report an earnings per share of 20.32 for the current fiscal year.
Institutional Activity
Recent activities involving institutional investors reflect a heightened interest in Brighthouse Financial. In the first quarter, GAMMA Investing LLC significantly increased its stake in the company by an astounding 6,338.1%, acquiring 118,010 shares valued at approximately $6.84 million. UMB Bank n.a. also boosted its stake by 101.7%, now holding 1,200 shares valued at $70,000.
Harbor Capital Advisors Inc. increased its holdings by 24.7%, now owning 21,705 shares valued at around $1.26 million. SG Americas Securities LLC further expanded its position by 1,764.2%, acquiring an additional 121,229 shares valued at about $7.03 million. Highland Capital Management LLC also entered the fray, acquiring a new stake valued at approximately $285,000.
Currently, institutional investors and hedge funds own approximately 81.24% of Brighthouse Financial’s stock, demonstrating strong institutional confidence in the company’s potential.
Brighthouse Financial specializes in providing annuity and life insurance products across the United States, operating through three segments: Annuities, Life, and Run-off. The Annuities segment focuses on various types of annuities to meet clients’ needs for wealth accumulation, transfer, and income security.