Brookfield Asset Management Ltd. (NYSE:BAM) Sees Large Increase in Short Interest

Brookfield Asset Management Ltd. (NYSE:BAM - Get Free Report) (TSE:BAM.A) experienced a notable rise in short interest during February. By February 28th, short interest had reached 13,660,000 shares, marking an increase of 26.7% from the previous total of 10,780,000 shares reported on February 13th. Currently, around 2.8% of the company's shares are being sold short. With an average trading volume of 1,410,000 shares, the short-interest ratio stands at 9.7 days.

Institutional Trading of Brookfield Asset Management

Recent movements by institutional investors have also had an impact on Brookfield Asset Management. In the fourth quarter, Truvestments Capital LLC significantly increased its holdings in the company by 487.2%, now owning 505 shares valued at approximately $27,000 after acquiring an additional 419 shares. RPg Family Wealth Advisory LLC entered a new position in the stock during the third quarter with an investment of $27,000. Similarly, Mountain Hill Investment Partners Corp. made a new investment in the company last quarter worth $32,000.

Versant Capital Management Inc. raised its stake in Brookfield Asset Management by 1,606.3% during the same quarter, resulting in ownership of 819 shares valued at $44,000 after purchasing an additional 771 shares. Furthermore, NewEdge Advisors LLC increased its position by 61.0% in the fourth quarter, now owning 858 shares worth $47,000. Overall, institutional investors and hedge funds hold 68.41% of the company’s stock.

Brookfield Asset Management Stock Performance

On Tuesday, shares of BAM saw an increase of $0.57, bringing the total to $48.51 with 1,427,897 shares changing hands, surpassing the average volume of 1,298,975. The company maintains a 50-day simple moving average of $55.59 and a 200-day simple moving average of $53.12. It has a market capitalization of $21.50 billion and a price-to-earnings ratio of 36.75, with a price-to-earnings-to-growth (P/E/G) ratio of 1.92. The stock has fluctuated between a low of $37.29 and a high of $62.61 over the past year.

Quarterly Earnings and Dividend Increase

Brookfield Asset Management recently announced its quarterly earnings, reporting $0.40 EPS for the quarter, which was above the consensus estimate of $0.39. The company enjoys a return on equity of 81.16% and a net margin of 54.47%. Analysts predict that the company will achieve earnings per share of 1.7 for the current fiscal year.

Additionally, Brookfield Asset Management has raised its quarterly dividend to $0.4375, payable on March 31st. This increase follows a prior quarterly dividend of $0.38. Shareholders as of February 28th will receive this dividend, which translates to an annualized payout of $1.75 and a dividend yield of 3.61%. The company's current dividend payout ratio is 132.58%.

Analyst Ratings

The stock has recently been subject to several analyst ratings changes. HSBC upgraded Brookfield Asset Management from a 'hold' to a 'buy' on February 14th. Meanwhile, Keefe, Bruyette & Woods revised their price target down from $57.00 to $56.00, maintaining an 'underperform' rating. StockNews.com decreased its rating from 'hold' to 'sell', while Wells Fargo & Company lowered their price target from $55.00 to $54.00, also establishing an 'underweight' rating. In contrast, Scotiabank adjusted their price target down from $63.00 to $62.50 while keeping an 'outperform' rating on the stock. Overall, three analysts have recommended selling the stock, four have rated it as a hold, while eight have issued a buy recommendation and one has given a strong buy. The stock currently has an average 'hold' rating and a consensus target price of $56.71.

Company Overview

Brookfield Asset Management Ltd. specializes in real estate investments and alternative asset management services. Its operations cover renewable power and transition, which includes hydroelectric, wind, solar, and sustainable solutions, and its infrastructure division focuses on utilities, transport, and data infrastructure.

Brookfield, Investment, Stocks