Brookfield Business Partners (NYSE:BBU) Sees Strong Trading Volume on Strong Earnings

Shares of Brookfield Business Partners L.P. (NYSE:BBU) saw strong trading volume on Monday after the company announced better than expected quarterly earnings. 21,102 shares were traded during mid-day trading, an increase of 50% from the previous session’s volume of 14,059 shares.The stock last traded at $24.44 and had previously closed at $25.02.

The business services provider reported $1.39 earnings per share for the quarter, topping analysts’ consensus estimates of $1.00 by $0.39. Brookfield Business Partners had a return on equity of 21.76% and a net margin of 7.34%. The firm had revenue of $9.23 billion for the quarter. During the same quarter last year, the company posted $1.33 EPS.

Brookfield Business Partners Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 31st. Shareholders of record on Friday, November 29th will be issued a $0.063 dividend. This is an increase from Brookfield Business Partners’s previous quarterly dividend of $0.06. The ex-dividend date of this dividend is Friday, November 29th. This represents a $0.25 dividend on an annualized basis and a yield of 1.03%. Brookfield Business Partners’s dividend payout ratio is 3.09%.

Analyst Upgrades and Downgrades

Separately, Royal Bank of Canada reaffirmed an “outperform” rating and issued a $32.00 target price on shares of Brookfield Business Partners in a research report on Monday, August 5th. Five research analysts have rated the stock with a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Buy” and a consensus target price of $31.40.

Institutional Investors Weigh In On Brookfield Business Partners

A number of institutional investors have recently modified their holdings of BBU. K2 Principal Fund L.P. boosted its stake in Brookfield Business Partners by 58.3% in the 1st quarter. K2 Principal Fund L.P. now owns 156,353 shares of the business services provider’s stock worth $3,455,000 after purchasing an additional 57,553 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of Brookfield Business Partners in the second quarter worth approximately $307,000. Principal Financial Group Inc. grew its holdings in shares of Brookfield Business Partners by 2.0% during the second quarter. Principal Financial Group Inc. now owns 90,242 shares of the business services provider’s stock valued at $1,701,000 after buying an additional 1,808 shares during the last quarter. Bank of Montreal Can increased its position in shares of Brookfield Business Partners by 3.1% during the second quarter. Bank of Montreal Can now owns 767,726 shares of the business services provider’s stock valued at $15,036,000 after acquiring an additional 22,886 shares in the last quarter. Finally, BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp raised its holdings in Brookfield Business Partners by 12.7% in the 2nd quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 681,562 shares of the business services provider’s stock worth $12,910,000 after acquiring an additional 77,017 shares during the last quarter. 85.04% of the stock is owned by hedge funds and other institutional investors.

Brookfield Business Partners Price Performance

The firm has a 50-day moving average of $22.57 and a 200-day moving average of $20.50. The company has a debt-to-equity ratio of 2.24, a quick ratio of 0.74 and a current ratio of 1.00. The firm has a market capitalization of $1.82 billion, a P/E ratio of 3.09 and a beta of 1.45.

About Brookfield Business Partners

Brookfield Business Partners L.P. is a private equity firm specializing in acquisition. The firm typically invests in business services, infrastructure services, construction, energy, and industrials sector. It prefers to take majority stake in companies. The firm seeks returns of at least 15% on its investments.