Short Interest in Brookfield Business Partners L.P. (NYSE:BBU) Grows By 55.1%

Brookfield Business Partners L.P. (NYSE:BBU - Get Free Report) experienced a notable rise in short interest during January. As of January 31st, the total short interest was recorded at 31,800 shares, reflecting a significant increase of 55.1% from the 20,500 shares reported on January 15th. Currently, around 0.0% of the company’s shares are being sold short. Given the average daily trading volume of 18,600 shares, the days-to-cover ratio stands at approximately 1.7 days.

Brookfield Business Partners Price Performance

During midday trading on Friday, shares of NYSE BBU increased by $0.50, reaching a price of $25.02. In total, 23,283 shares traded hands, which is in line with the average trading volume of 19,233 shares. The company's market capitalization is approximately $1.86 billion, with a price-to-earnings (PE) ratio of -51.06 and a beta of 1.50. The stock’s 50-day simple moving average is $22.74, while the 200-day simple moving average is $22.56. Over the past year, Brookfield Business Partners has seen a low of $16.85 and a high of $26.75. Additionally, the company’s debt-to-equity ratio is 2.12, with a quick ratio of 0.95 and a current ratio of 0.50.

Quarterly Earnings Results

Brookfield Business Partners (NYSE:BBU - Get Free Report) recently announced its quarterly earnings results on January 31st. The business services provider reported earnings per share (EPS) of $1.47 for the quarter, outperforming analysts' expectations, which had estimated a consensus of only $0.14. The company achieved a return on equity of 5.09% and a net margin of 2.20%. Analysts are predicting an EPS of 5.25 for the current fiscal year for Brookfield Business Partners.

Changes in Dividend Policy

Recently, the company announced a quarterly dividend, scheduled to be paid on March 31st. Shareholders recorded as of February 28th will receive a dividend of $0.0625 per share. The ex-dividend date is also set for February 28th. This dividend equates to an annualized total of $0.25, representing a dividend yield of 1.00%. The current payout ratio for Brookfield Business Partners is -51.02%.

Analyst Ratings Updates

Research on Brookfield Business Partners has resulted in several updates from analysts. BMO Capital Markets upgraded their target price from $32.00 to $34.00 and assigned the stock an "outperform" rating on January 10th. Similarly, Scotiabank raised its target price from $32.00 to $33.00, providing a "sector outperform" rating on February 3rd. Conversely, Royal Bank of Canada decreased its target price from $32.00 to $30.00 while maintaining an "outperform" rating on February 3rd. The stock has received a "buy" rating from three investment analysts and a strong buy rating from one, resulting in an overall average rating of "Buy" and an average target price of $32.33 according to MarketBeat.

Institutional Investment Changes

Several institutional investors have recently adjusted their positions in Brookfield Business Partners. For example, Intact Investment Management Inc. increased its stake by 52.6% in the fourth quarter, now owning 2,900 shares valued at $68,000 after acquiring an additional 1,000 shares. Gold Investment Management Ltd. raised its holdings by 3.2%, and The Manufacturers Life Insurance Company raised theirs by 2.8%. Additionally, Bank of New York Mellon Corp increased its stake by 8.9%, now holding 17,724 shares worth $415,000 after buying an extra 1,448 shares. In total, institutional investors own approximately 85.04% of Brookfield Business Partners.

About Brookfield Business Partners

Brookfield Business Partners L.P. is a private equity firm that specializes in acquisitions. The firm primarily invests in sectors such as business services, infrastructure services, construction, energy, and industrial areas. It prefers to acquire a majority stake in companies, aiming to achieve returns of at least 15% on its investments.

Conclusion

In conclusion, the significant increase in short interest for Brookfield Business Partners highlights changes in market sentiment. With positive quarterly earnings and targeted price upgrades, the company appears to be gaining attention from investors, though its dividend changes and analyst ratings also warrant consideration for those interested in trading or investing in this stock.

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