Why Should You Put Brunswick Corporation (NYSE: BC) On Your Portfolio?


The Vanguard Group, Inc. recently announced the acquisition of new stake in Brunswick Corporation (NYSE:BC). The institutional investor has increased its shareholding in the Consumer Cyclical company by 5.65% to 7.76 million shares with purchase of 0.41 million shares. This fresh investment now brings its stake to 9.80% valued currently at $426.68 million. In addition, Cantillon Capital Management LLC raised its holdings by 0.34 million to 3.76 million shares. And Lazard Asset Management LLC has lifted its position by 29.12% or 0.76 million shares – to 3.35 million shares.

With over 0.62 million Brunswick Corporation (BC) shares trading Friday and a closing price of $64.27 on the day, the dollar volume was approximately $39.76 million. The shares have shown a negative weekly performance of -0.83% and its price on 07/10/20 gained nearly 2.59%. Currently, there are 80.00M common shares owned by the public and among those 78.49M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 15 analysts who have offered their price forecasts for BC have a consensus price objective of $62.21. The analysts have set the share’s price value over the next 12 months at a high of $79.00 and a low of $37.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Brunswick Corporation stock is 1.90 for the next 12 months. The average price target is -7.53% below its last price level and a downside to the estimated low will see the stock lose -73.7% over that period. But an upside of 18.65% will see the stock hit the forecast high price target while mean target price for the stock is $66.50.

Insiders at the company have transacted a total of 83 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 60 of these insider trades were purchases, accounting for 179,424 shares. Insider sales of the common stock occurred on 23 occasions, with total insider shares sold totaling 65,163 shares.

The top 3 mutual fund holders in Brunswick Corporation are Vanguard Total Stock Market Index, iShares Core S&P Mid Cap ETF, and Vanguard Small Cap Index Fund. Vanguard Total Stock Market Index owns 2.35 million shares of the company’s stock, all valued at over $129.2 million. The company sold 18685.0 shares recently to bring their total holdings to about 2.97% of the shares outstanding. iShares Core S&P Mid Cap ETF bought 4630.0 shares to see its total holdings expand to 2.23 million shares valued at over $122.4 million and representing 2.81% of the shares outstanding. Vanguard Small Cap Index Fund sold 16083.0 shares to bring its total holdings to over 2.11 million shares at a value of $116.29 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.67% of the shares outstanding.

Shares of Brunswick Corporation (NYSE: BC) opened at $62.60, down -$0.05 from a prior closing price of $62.65. However, the script later closed the day at $64.27, up 2.59%. The company’s stock has a 5-day price change of -0.83% and 68.07% over the past three months. BC shares are trading 7.15% year to date (YTD), with the 12-month market performance up to 43.97% higher. It has a 12-month low price of $25.22 and touched a high of $67.39 over the same period. Currently, 0.62 million shares have been traded, compared to an average intraday trading volume of 1.03 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 3.63%, 13.47%, and 19.28% respectively.

Institutional ownership of Brunswick Corporation (NYSE: BC) shares accounts for 96.04% of the company’s 80.00M shares outstanding. Mutual fund holders own 47.86%, while other institutional holders and individual stakeholders account for 50.84% and 4.01% respectively.

It has a market capitalization of $5.06B and a beta (3y monthly) value of 2.13. The stock’s trailing 12-month PE ratio is 185.22, while the earnings-per-share (ttm) stands at $0.35. The company has a PEG of 12.35 and a Quick Ratio of 0.80 with the debt-to-equity ratio at 1.15. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.10% over the week and 4.02% over the month.

Analysts forecast that Brunswick Corporation (BC) will achieve an EPS of $0.43 for the current quarter, $0.92 for the next quarter and $4.2 for 2021. The lowest estimate earnings-per-share for the quarter is $0.23 while analysts give the company a high EPS estimate of $0.77. Comparatively, EPS for the current quarter was $1.45 a year ago. Earnings per share for the fiscal year are expected to decrease by -87.90%, and 40.38% over the next financial year. EPS should grow at an annualized rate of 15.00% over the next five years, compared to -29.50% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate Brunswick Corporation (BC) as a “Strong Buy” at a consensus score of 1.90. Specifically, 8 Wall Street analysts polled rate the stock as a buy, while 4 of the 15 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the BC, a number of firms have released research notes about the stock. B. Riley FBR stated their Buy rating for the stock in a research note on June 08, 2020, with the firm’s price target at $64-$71. B. Riley FBR coverage for the Brunswick Corporation (BC) stock in a research note released on June 02, 2020 offered a Buy rating with a price target of $64. BMO Capital Markets was of a view on April 02, 2020 that the stock is Market Perform, while RBC Capital Mkts gave the stock Sector Perform rating on March 16, 2020, issuing a price target of $70- $44. Raymond James on their part issued Outperform rating on February 18, 2020.


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