Bright Horizons Family Solutions Inc. (NYSE:BFAM) has received a consensus rating of “Moderate Buy” from nine research firms currently covering the stock, according to MarketBeat. This rating reflects a mix of opinions, with one analyst recommending a sell, three advising to hold, four suggesting a buy, and one issuing a strong buy recommendation. The average price target set by brokerages over the past year is approximately $128.71.
A series of recent reports from major financial institutions have provided insights into Bright Horizons’ stock performance and future prospects. On October 24, Morgan Stanley revised its price target downwards from $104.00 to $96.00, designating the stock as “underweight.” Conversely, JPMorgan Chase & Co. increased its target from $156.00 to $160.00 and assigned an “overweight” rating. Similarly, UBS Group raised its target from $112.00 to $120.00 while maintaining a “neutral” rating.
On October 30, Bright Horizons announced its quarterly earnings, reporting earnings per share (EPS) of $1.57, exceeding analysts’ expectations of $1.32 by $0.25. The company recorded revenue of $802.81 million, surpassing the consensus estimate of $781.16 million. This marks an increase of 11.6% compared to the same quarter last year.
Insider Transactions and Institutional Investments
In notable insider trading, Chief Operating Officer Mary Lou Burke sold 1,000 shares of the company on October 1 at an average price of $108.52, amounting to $108,520.00. Following this transaction, Burke holds 26,449 shares, worth approximately $2,870,245.48. This sale represents a decrease of 3.64% in her ownership.
Additionally, Director Mary Ann Tocio sold 3,000 shares on August 5 for an average price of $120.10, totaling $360,300.00. Post-transaction, Tocio retains 18,233 shares, valued at around $2,189,783.30, reflecting a 14.13% reduction in her position. Currently, insiders own 1.21% of Bright Horizons’ stock.
Institutional investors have also been active in adjusting their holdings. For instance, GAMMA Investing LLC increased its stake by 72.7% in the first quarter, acquiring 475 shares worth $60,000. DAVENPORT & Co LLC raised its stake by 20.1%, now holding 2,351 shares valued at $299,000. Other institutional movements include First Bank & Trust and OneDigital Investment Advisors LLC, which both acquired new positions during the same period.
Company Overview and Future Outlook
Bright Horizons Family Solutions provides early education, childcare, back-up care, and workplace solutions across the United States, Puerto Rico, the United Kingdom, the Netherlands, Australia, and India. The company operates through three main segments: Full Service Center-Based Child Care, Back-Up Care, and Educational Advisory and Other Services.
For fiscal year 2025, Bright Horizons has projected guidance of $4.480 to $4.530 EPS. Analysts estimate that the company will report an EPS of $3.61 for the current year. With a robust business model and positive earnings performance, Bright Horizons continues to be a focal point for investors and analysts alike.
