Significant Growth in Short Interest for Brookfield Business Partners L.P. (NYSE:BBU)

Brookfield Business Partners L.P. (NYSE:BBU) has experienced a notable rise in short interest during January. By January 31, the short interest had reached 31,800 shares, marking a substantial increase of 55.1% from the January 15 total of 20,500 shares. Currently, only 0.0% of the company's shares are being short sold. Given the average trading volume of 18,600 shares, the days-to-cover ratio stands at 1.7 days.

Brookfield Business Partners Price Performance

On Friday, shares of NYSE BBU rose by $0.50, reaching a price of $25.02. Approximately 23,283 shares were traded, exceeding the average volume of 19,233 shares. The company's market capitalization is $1.86 billion, with a PE ratio of -51.06 and a beta of 1.50. The 50-day simple moving average is currently $22.74, while the 200-day average sits at $22.56. Over the past year, Brookfield Business Partners has recorded a low of $16.85 and a high of $26.75. The firm reports a debt-to-equity ratio of 2.12, a quick ratio of 0.95, and a current ratio of 0.50.

Brookfield Business Partners released its latest quarterly earnings data on January 31. The business services provider reported earnings of $1.47 per share (EPS), significantly surpassing analysts' expectations of $0.14 by $1.33. For the fiscal year, analysts predict that Brookfield will report 5.25 earnings per share.

Brookfield Business Partners Cuts Dividend

Furthermore, the company announced a quarterly dividend that will be distributed on Monday, March 31. Shareholders on record as of Friday, February 28, will receive a dividend payment of $0.0625 per share. The ex-dividend date is also set for February 28. This results in an annualized dividend of $0.25, reflecting a 1.00% dividend yield. Currently, Brookfield Business Partners holds a payout ratio of -51.02%.

Changes in Analyst Ratings

Brookfield Business Partners has been featured in several research reports recently. BMO Capital Markets upgraded their target price from $32.00 to $34.00 while giving the stock an “outperform” rating on January 10. Scotiabank also revised their target price upwards from $32.00 to $33.00, maintaining a “sector outperform” rating as of February 3. However, the Royal Bank of Canada lowered their target price from $32.00 to $30.00 while still issuing an “outperform” rating. Currently, three investment analysts have rated the stock as a buy, and one has assigned a strong buy rating, leading to an average rating of “Buy” and a target price of $32.33 according to MarketBeat.

Institutional Investors Activity

In terms of institutional investment, there have been notable changes in ownership positions recently. Intact Investment Management Inc. increased its stake in Brookfield Business Partners by 52.6% during the last quarter and now holds 2,900 shares valued at $68,000 after acquiring an additional 1,000 shares. Gold Investment Management Ltd. grew its position by 3.2%, now owning 32,518 shares worth $767,000 after a purchase of 1,017 shares. Similarly, The Manufacturers Life Insurance Company added 1,146 shares to own a total of 41,794 shares, valued at $987,000. Additionally, Bank of New York Mellon Corp raised their holdings by 8.9%, owning 17,724 shares now valued at $415,000 after an increase of 1,448 shares. Lastly, Tandem Capital Management Corp ADV raised its position by 24.5%, holding 40,281 shares after acquiring 7,939 shares. Currently, institutional investors own approximately 85.04% of the stock.

About Brookfield Business Partners

Brookfield Business Partners L.P. is a private equity firm specializing in acquisitions, primarily focused on the business services, infrastructure, construction, energy, and industrial sectors. The firm typically seeks to acquire a majority stake in its target companies and aims to generate returns of at least 15% on its investments.

Conclusion

Overall, Brookfield Business Partners L.P. is facing increased scrutiny from short-sellers as indicated by the significant growth in short interest. Coupled with fluctuations in stock performance, dividend announcements, and fluctuating analyst ratings, investors are watching the firm closely to gauge its future prospects.

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