Segall Bryant & Hamill Increases Stake in Bright Horizons Family Solutions

Segall Bryant & Hamill LLC has expanded its investment in Bright Horizons Family Solutions Inc. (NYSE: BFAM) by 20.7% during the second quarter of 2023. According to the firm’s recent 13F filing with the U.S. Securities and Exchange Commission (SEC), Segall Bryant & Hamill now holds a total of 87,934 shares, having acquired an additional 15,069 shares in this period. As of the latest filing, the fund’s stake in Bright Horizons is valued at approximately $10.87 million, representing 0.15% of the company.

Several other institutional investors have also adjusted their positions in Bright Horizons. Twin Tree Management LP entered the market with a new position worth around $29,000 in the first quarter of 2023. Geneos Wealth Management Inc. significantly increased its holdings by 98.8%, now owning 336 shares valued at about $43,000 after purchasing an additional 167 shares. Similarly, Banque Cantonale Vaudoise made a new investment estimated at $65,000, while GAMMA Investing LLC raised its stake by 18.3%, totaling 562 shares worth $69,000. Harvest Fund Management Co. Ltd. also boosted its holdings by an impressive 349.7%, now owning 733 shares valued at $93,000.

Recent Analyst Ratings and Stock Performance

Bright Horizons has drawn attention from analysts recently, with several upgrades and downgrades influencing investor sentiment. Weiss Ratings reaffirmed a “hold (C+)” rating on October 8, 2023. On the same day, Robert W. Baird set a price target of $136.00. JPMorgan Chase & Co. increased its target from $156.00 to $160.00, assigning the company an “overweight” rating. BMO Capital Markets reiterated an “outperform” rating with a $124.00 target. On October 30, 2023, Wall Street Zen upgraded the stock from “hold” to “buy.”

Currently, three analysts rate the stock as a Buy, three as Hold, and one as Sell. Data from MarketBeat.com indicates that Bright Horizons holds an average rating of “Hold” with an average price target of $128.71.

On the trading front, shares of Bright Horizons opened at $101.08 on Monday, marking a 3.6% increase. The stock has fluctuated between a 52-week low of $91.49 and a high of $132.99. The company maintains a market capitalization of $5.72 billion, with a price-to-earnings (P/E) ratio of 33.14 and a beta of 1.36.

Financial Results and Insider Transactions

Bright Horizons reported its latest earnings on October 30, 2023, delivering earnings per share of $1.57, surpassing the consensus estimate of $1.32 by $0.25. The company achieved revenues of $802.81 million, exceeding expectations of $781.16 million. This represents an impressive year-over-year revenue growth of 11.6%. The firm recorded a net margin of 6.34% and a return on equity of 15.12%. The guidance for the fiscal year 2025 is set at $4.480 – $4.530 earnings per share, with analysts estimating an average of $3.61 for the current fiscal year.

In related news, Chief Operating Officer Mary Lou Burke sold 1,000 shares of Bright Horizons on October 1, 2023, at an average price of $108.52, totaling $108,520. Following the sale, Burke retains ownership of 26,449 shares, valued at approximately $2.87 million. Currently, company insiders hold around 1.21% of the stock.

Bright Horizons Family Solutions Inc. provides early education and childcare, back-up care, educational advisory, and various workplace solutions for families and employers in multiple countries, including 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.