Latest news with #BrighthouseFinancial
Yahoo
4 days ago
- Business
- Yahoo
Strength Seen in Brighthouse Financial (BHF): Can Its 6.2% Jump Turn into More Strength?
Brighthouse Financial (BHF) shares soared 6.2% in the last trading session to close at $50.27. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 18.5% loss over the past four weeks. Brighthouse Financial is reportedly to be acquired. Per media reports an investment firm Aquarian Holdings is close to buying the life insurer. This news likely have fueled price appreciation for the stock. Brighthouse is also revamping its life insurance business to boost annuity sales. The insurer remains focused on transitioning the business mix to less capital-intensive Financial is poised to benefit from growth opportunities, given its expansive and compelling suite of life and annuity products and a strong market presence. It aims to become a premier player in the enhanced financial strength and flexibility, the company remains committed to returning capital to shareholders and intends to maintain an opportunistic share repurchase program to create significant value for the shareholders. This annuity and life insurance company is expected to post quarterly earnings of $4.70 per share in its upcoming report, which represents a year-over-year change of -15.6%. Revenues are expected to be $2.2 billion, down 0.7% from the year-ago quarter. Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements. For Brighthouse Financial, the consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on BHF going forward to see if this recent jump can turn into more strength down the road. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Brighthouse Financial is part of the Zacks Insurance - Life Insurance industry. Primerica (PRI), another stock in the same industry, closed the last trading session 1.2% higher at $263.57. PRI has returned 1.1% in the past month. Primerica's consensus EPS estimate for the upcoming report has changed +0.4% over the past month to $5.18. Compared to the company's year-ago EPS, this represents a change of +10%. Primerica currently boasts a Zacks Rank of #3 (Hold). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report Primerica, Inc. (PRI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
4 days ago
- Business
- Wall Street Journal
Aquarian Nears Deal for U.S. Insurer Brighthouse
Investment firm Aquarian Holdings is in exclusive talks to acquire the U.S. life insurance company Brighthouse Financial BHF 6.23%increase; green up pointing triangle, according to people familiar with the matter. A deal could be completed in the coming weeks, the people said, granted the talks don't hit any last-minute hurdles. It would mark the end of a competitive process for Brighthouse, which has drawn interest from a number of other big private-equity firms.
Yahoo
5 days ago
- Business
- Yahoo
BHF Stock Trading at a Discount to Industry at 0.51X: Time to Buy?
Shares of Brighthouse Financial, Inc. BHF are trading at a discount compared to the Zacks Life Insurance industry. Its price-to-book value of 0.51X is lower than the industry average of 1.91X, the Finance sector's 4.28X and the Zacks S&P 500 Composite's 8.43X. The insurer has a market capitalization of $2.72 billion. The average volume of shares traded in the last three months was 0.8 million. Shares of other insurers, such asSun Life Financial SLF, Baldwin Insurance Group, Inc. BWIN andAIA Group Ltd AAGIY, are trading at a multiple higher than the industry average. Image Source: Zacks Investment Research Price Performance of BHF Shares of Brighthouse Financialhave lost 1.5% year to date, underperforming its industry,the Finance sector, and the Zacks S&P 500 Composite. Due to increasing expenses weighing on margin expansion and a high debt level, which leads to elevated leverage and lower interest coverage, Brighthouse Financial remains under pressure. Image Source: Zacks Investment Research Projections For BHF The Zacks Consensus Estimate for 2025 revenues is pegged at $8.8 billion, implying a year-over-year improvement of 1.1%. The consensus estimate for Brighthouse Financial's current-year earnings is pegged at $18.44 per share, down 6.3% from the year-ago reported figure. The consensus estimate for 2026 earnings per share and revenues indicates an increase of 18.3% and 2.6%, respectively, from the corresponding 2025 estimates. Average Target Price for BHF Suggests Upside Based on short-term price targets offered by 10 analysts, the Zacks average price target is $59.60 per share. The average suggests a potential 21.3% upside from the last closing price. Image Source: Zacks Investment Research Mixed Analyst Sentiment on BHF The Zacks Consensus Estimate for 2025 earnings has moved down 0.2% in the past seven days, while the same for 2026 has moved up 0.5% in the same time frame. Image Source: Zacks Investment Research Brighthouse Financial's Return on Capital BHF's trailing 12-month return on equity is 25.6%, ahead of the industry average of 15.37%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders ' equity. Key Points to Note for BHF Brighthouse Financial is poised to capitalize on the expanding individual insurance market, driven by its broad portfolio of life and annuity products and solid market positioning. With a strategic focus on increasing life insurance sales, enhancing annuity solutions, and expanding its distribution reach, the company is working to solidify its status as a leading force in the industry. Brighthouse Financial continues to shift its business mix toward less capital-intensive offerings, aiming to build a more sustainable and diversified earnings profile. Its institutional spread margin business is expected to contribute meaningfully over time, while products like Brighthouse Shield Level Pay Plus are designed to address evolving needs in retirement planning. Brighthouse Financial's net investment income has shown consistent improvement in recent quarters. In first-quarter 2025, adjusted net investment income rose 2% year over year to $1.3 billion, supported by asset growth. The yield on adjusted net investment income has also trended upward, reaching 4.25% in the first quarter. Backed by a well-diversified, high-quality portfolio and a prudent investment approach, this metric is expected to strengthen further going forward. Headwinds for BHF Brighthouse Financial continues to face significant financial pressures despite its strong business fundamentals. Total expenses nearly quadrupled to $2.7 billion in the first quarter of 2025, with corporate expenses climbing 15.4% year over year to $239 million. This surge in costs, largely due to increased policyholder benefits and claims, resulted in a negative net margin of 11%, indicating a strain on profitability. On the balance sheet side, the company's long-term debt totaled $3.2 billion, resulting in a high debt-to-equity ratio of 59.5%, significantly above the industry average of 16.8%. Additionally, its return on invested capital was just 0.6%, slightly trailing the industry average of 0.7%, indicating inefficiencies in capital utilization that could impact future returns. Conclusion While Brighthouse Financial boasts a strong product portfolio and growing investment income, ongoing pressure from rising expenses, high leverage, and modest returns on capital tempers the outlook. Given the balanced mix of strengths and headwinds, it is therefore wise to adopt a wait-and-see approach on this Zacks Rank #3 (Hold) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sun Life Financial Inc. (SLF) : Free Stock Analysis Report Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report AIA (AAGIY) : Free Stock Analysis Report Baldwin Insurance Group, Inc. (BWIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Why Brighthouse Financial (BHF) Stock Is Up Today
What Happened? Shares of insurance and annuity provider Brighthouse Financial (NASDAQ:BHF) jumped 9.5% in the morning session after reports surfaced that the company is in exclusive talks to be acquired by investment firm Aquarian Holdings. The news, first reported by The Wall Street Journal, indicated that a deal could be finalized within a few weeks. This development follows a period of exploration by Brighthouse, which had reportedly been working with bankers on a potential sale for much of the year. Life insurance and annuity companies like Brighthouse have increasingly become attractive targets for private equity firms and asset managers. These buyers are often drawn to the large asset bases of insurers, which they can manage and deploy into their own investment strategies. The potential acquisition by Aquarian highlights a strategic interest in Brighthouse's substantial financial operations and its undervalued assets. Is now the time to buy Brighthouse Financial? Access our full analysis report here, it's free. What Is The Market Telling Us Brighthouse Financial's shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 8 days ago when the stock gained 3.8% as investors reacted to an analyst rating from Barclays, which reiterated its "overweight" rating on the stock. While Barclays lowered its price target on the life insurance and annuity provider to $70 from $76, the firm maintained its positive "overweight" rating. An overweight rating suggests that the analyst believes the stock is likely to outperform the broader market or its sector in the near future. Investors appeared to be focusing on the maintained positive outlook and the fact that the new $70 price target still implies a significant potential upside from the stock's current price. Brighthouse Financial is up 6.6% since the beginning of the year, but at $51.16 per share, it is still trading 18.8% below its 52-week high of $62.97 from February 2025. Investors who bought $1,000 worth of Brighthouse Financial's shares 5 years ago would now be looking at an investment worth $1,742. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
5 days ago
- Business
- Yahoo
Brighthouse Financial Stock Pops on Report of Buyout Talks With Aquarian
Key Takeaways Brighthouse Financial shares took off Wednesday following a report that private equity firm Aquarian Holdings could be close to striking a deal to buy the insurer. The two sides could come to an agreement in the coming weeks, according to The Wall Street Journal. The paper said several firms have shown interest in acquiring Brighthouse, including Financial (BHF) shares took off Wednesday following a report that private equity firm Aquarian Holdings could be close to striking a deal to buy the insurer. Shares of Brighthouse were up close to 9% over $51 in recent trading, bringing them back into positive territory for the year. An agreement could be reached in a matter of weeks, The Wall Street Journal reported. Several other private equity investors have also shown interest in buying Brighthouse, including TPG, the report said. Aquarian already owns several insurance assets, and in March announced it established the Aquarian Insurance Holdings division. Aquarian said the new unit would 'provide a shared structure for the company's reinsurance and retail insurance businesses that optimizes growth and synergies amongst the organization.' Brighthouse and Aquarian did not immediately respond to Investopedia requests for comment. Read the original article on Investopedia Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
