Brunswick (NYSE:BC) Shares Down 7.6% After Earnings Miss

Brunswick Co. (NYSE:BC)’s share price dropped 7.6% on Thursday following a dissappointing earnings announcement. The company traded as low as $79.09 and last traded at $79.61. Approximately 604,486 shares traded hands during mid-day trading, a decline of 18% from the average daily volume of 739,566 shares. The stock had previously closed at $86.13.

The company reported $1.35 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.36 by ($0.01). Brunswick had a net margin of 6.24% and a return on equity of 25.37%. The business had revenue of $1.37 billion during the quarter, compared to analyst estimates of $1.36 billion. During the same period in the previous year, the firm posted $2.57 earnings per share. The firm’s revenue was down 21.7% on a year-over-year basis.

Brunswick Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 15th. Stockholders of record on Monday, February 26th were issued a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 2.07%. This is a positive change from Brunswick’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Friday, February 23rd. Brunswick’s payout ratio is 31.23%.

Analyst Ratings Changes

A number of analysts have recently commented on the company. Roth Mkm restated a “buy” rating and issued a $94.00 price target on shares of Brunswick in a report on Thursday. Truist Financial cut their price target on Brunswick from $115.00 to $105.00 and set a “buy” rating on the stock in a report on Friday, February 2nd. Raymond James lowered Brunswick from an “outperform” rating to a “market perform” rating in a report on Thursday, January 4th. Morgan Stanley dropped their target price on Brunswick from $91.00 to $86.00 and set an “equal weight” rating on the stock in a report on Friday. Finally, B. Riley raised Brunswick from a “neutral” rating to a “buy” rating and increased their price target for the stock from $100.00 to $108.00 in a research report on Tuesday, February 20th. Five research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $92.83.

Insider Buying and Selling at Brunswick

In other Brunswick news, VP Christopher F. Dekker sold 6,234 shares of the firm’s stock in a transaction on Friday, February 9th. The stock was sold at an average price of $84.53, for a total value of $526,960.02. Following the sale, the vice president now owns 35,176 shares of the company’s stock, valued at approximately $2,973,427.28. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. In other news, VP Christopher F. Dekker sold 6,234 shares of the stock in a transaction on Friday, February 9th. The stock was sold at an average price of $84.53, for a total value of $526,960.02. Following the completion of the transaction, the vice president now directly owns 35,176 shares in the company, valued at approximately $2,973,427.28. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO David M. Foulkes sold 35,000 shares of the stock in a transaction on Monday, February 26th. The shares were sold at an average price of $87.11, for a total value of $3,048,850.00. Following the completion of the transaction, the chief executive officer now owns 272,626 shares of the company’s stock, valued at $23,748,450.86. The disclosure for this sale can be found here. In the last quarter, insiders have sold 52,696 shares of company stock valued at $4,574,199. 0.81% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Prestige Wealth Management Group LLC raised its position in Brunswick by 2,478.0% during the 1st quarter. Prestige Wealth Management Group LLC now owns 1,057 shares of the company’s stock worth $102,000 after purchasing an additional 1,016 shares during the last quarter. Louisiana State Employees Retirement System grew its stake in shares of Brunswick by 2.6% in the 1st quarter. Louisiana State Employees Retirement System now owns 19,800 shares of the company’s stock valued at $1,911,000 after buying an additional 500 shares during the period. Valley National Advisers Inc. grew its stake in shares of Brunswick by 47.0% in the 1st quarter. Valley National Advisers Inc. now owns 1,120 shares of the company’s stock valued at $108,000 after buying an additional 358 shares during the period. State of Michigan Retirement System grew its stake in shares of Brunswick by 2.4% in the 1st quarter. State of Michigan Retirement System now owns 16,870 shares of the company’s stock valued at $1,628,000 after buying an additional 400 shares during the period. Finally, Allspring Global Investments Holdings LLC grew its stake in shares of Brunswick by 43,700.0% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 438 shares of the company’s stock valued at $42,000 after buying an additional 437 shares during the period. 99.34% of the stock is owned by institutional investors.

Brunswick Price Performance

The firm has a market cap of $5.58 billion, a price-to-earnings ratio of 15.07 and a beta of 1.56. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.59 and a current ratio of 1.68. The business has a 50 day simple moving average of $89.13 and a 200-day simple moving average of $84.77.

About Brunswick

Brunswick Corporation designs, manufactures, and markets recreation products in the United States, Europe, the Asia-Pacific, Canada, and internationally. It operates through four segments: Propulsion, Engine P&A, Navico Group, and Boat. The Propulsion segment provides outboard, sterndrive, inboard engines, propulsion-related controls, rigging, and propellers for boat builders through marine retail dealers under the Mercury, Mercury MerCruiser, Mariner, Mercury Racing, Mercury Diesel, Avator, and Fliteboard brands.