RBC Capital Initiates Coverage of Broadridge Financial Solutions (BR) with Outperform Recommendation

Fintel reports that on April 24, 2023, RBC Capital initiated coverage of Broadridge Financial Solutions (NYSE:BR) with a Outperform recommendation.

Analyst Price Forecast Suggests 14.14% Upside

As of April 24, 2023, the average one-year price target for Broadridge Financial Solutions is 165.16. The forecasts range from a low of 136.35 to a high of $192.15. The average price target represents an increase of 14.14% from its latest reported closing price of 144.70.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Broadridge Financial Solutions is 6,323MM, an increase of 8.40%. The projected annual non-GAAP EPS is 7.18.

Broadridge Financial Solutions Declares $0.72 Dividend

On February 16, 2023 the company declared a regular quarterly dividend of $0.72 per share ($2.90 annualized). Shareholders of record as of March 15, 2023 received the payment on April 5, 2023. Previously, the company paid $0.72 per share.

At the current share price of $144.70 / share, the stock's dividend yield is 2.00%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.69%, the lowest has been 1.23%, and the highest has been 2.56%. The standard deviation of yields is 0.24 (n=236).

The current dividend yield is 1.34 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.64. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.34%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 1438 funds or institutions reporting positions in Broadridge Financial Solutions. This is a decrease of 14 owner(s) or 0.96% in the last quarter. Average portfolio weight of all funds dedicated to BR is 0.29%, an increase of 9.47%. Total shares owned by institutions increased in the last three months by 2.48% to 119,211K shares. The put/call ratio of BR is 1.08, indicating a bearish outlook.

What are Other Shareholders Doing?

APG Asset Management N.V. holds 3,875K shares representing 3.29% ownership of the company. In it's prior filing, the firm reported owning 3,807K shares, representing an increase of 1.75%. The firm decreased its portfolio allocation in BR by 31.70% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 3,575K shares representing 3.04% ownership of the company. In it's prior filing, the firm reported owning 3,500K shares, representing an increase of 2.10%. The firm decreased its portfolio allocation in BR by 12.33% over the last quarter.

Baillie Gifford holds 3,409K shares representing 2.90% ownership of the company. In it's prior filing, the firm reported owning 3,619K shares, representing a decrease of 6.14%. The firm decreased its portfolio allocation in BR by 65.95% over the last quarter.

Price T Rowe Associates holds 3,391K shares representing 2.88% ownership of the company. In it's prior filing, the firm reported owning 3,366K shares, representing an increase of 0.76%. The firm decreased its portfolio allocation in BR by 8.11% over the last quarter.

Janus Henderson Group holds 3,149K shares representing 2.68% ownership of the company. In it's prior filing, the firm reported owning 3,111K shares, representing an increase of 1.22%. The firm decreased its portfolio allocation in BR by 10.29% over the last quarter.

Broadridge Financial Solutions Background Information
(This description is provided by the company.)

Broadridge Financial Solutions, a global Fintech leader with over $4.5 billion in revenues, provides the critical infrastructure that powers investing, corporate governance, and communications to enable better financial lives. Broadridge delivers technology-driven solutions to banks, broker-dealers, asset and wealth managers and public companies. Broadridge's infrastructure serves as a global communications hub enabling corporate governance by linking thousands of public companies and mutual funds to tens of millions of individual and institutional investors around the world. In addition, Broadridge's technology and operations platforms underpin the daily trading of on average more than U.S. $10 trillion of equities, fixed income and other securities globally. A certified Great Place to Work®, Broadridge is a part of the S&P 500® Index, employing over 12,000 associates in 17 countries.

This story originally appeared on Fintel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.