Prepare Yourself for Liftoff: Brookfield Asset Management Inc. (BAM)

Brookfield Asset Management Inc. (NYSE: BAM) stock fell -2.07% on Friday to $46.44 against a previous-day closing price of $47.42. With 1.43 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.35 million shares. During the session, the Asset Management company that operates in wider Financial sector, reached to the highest price of $47.84 whereas the lowest price it dropped to was $46.42. The 52-week range on BAM shows that it touched its highest point at $62.47 and its lowest point at $42.21 during that stretch. It currently has a 1-year price target of $63.27. With its current market cap of 73.69 billion, BAM has annualized dividend of $0.56 while the current yield stands at 1.21%. Beta for the stock currently stands at 1.30.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BAM was down-trending over the past week, with a drop of -6.62%, but this was down by -8.98% over a month. Three-month performance surged to 6.73% while six-month performance fell -18.02%. The stock lost -14.71% in the past year, while it has lost -23.09% so far this year. A look at the trailing 12-month EPS for BAM yields 2.29 with Next year EPS estimates of 3.63. For the next quarter, that number is 0.82. This implies an EPS growth rate of 2333.30% for this year and 17.34% for next year. EPS is expected to grow by 9.43% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 18.30%.

Float and Shares Shorts:

At present, 1.56 billion BAM shares are outstanding with a float of 1.38 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 8.61 million, which was 0.52% higher than short shares on Jun 14, 2022. In addition to Mr. James Bruce Flatt as the firm’s Managing Partner, CEO & Director, Mr. Nicholas Goodman C.A. serves as its Managing Partner & CFO.


Institutional Ownership:

Through their ownership of 70.97% of BAM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 32.99% of BAM, in contrast to 29.58% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in BAM with 7.94% of the stake, Brookfield Asset Management PIC C holds 130,335,896 shares worth 130,335,896. A second-largest stockholder of BAM, RBC Global Asset Management, Inc., holds 57,191,279 shares, controlling over 3.48% of the firm’s shares. 1832 Asset Management LP is the third largest shareholder in BAM, holding 47,832,004 shares or 2.91% stake. With a 1.20% stake in BAM, the Principal Investors – Mid Cap Fun is the largest stakeholder. A total of 19,709,881 shares are owned by the mutual fund manager. The Vanguard Total International Stoc, which owns about 1.07% of BAM stock, is the second-largest Mutual Fund holder. It holds 17,514,506 shares valued at 842.62 million. RBC Canadian Dividend Fund holds 0.91% of the stake in BAM, owning 14,981,523 shares worth 720.76 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BAM since 12 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BAM analysts setting a high price target of $73.00 and a low target of $43.00, the average target price over the next 12 months is $63.25. Based on these targets, BAM could surge 57.19% to reach the target high and fall by -7.41% to reach the target low. Reaching the average price target will result in a growth of 36.2% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BAM will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $3.23 being high and $3.09 being low. For BAM, this leads to a yearly average estimate of $3.14. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Brookfield Asset Management Inc. surprised analysts by $0.04 when it reported $0.73 EPS against a consensus estimate of $0.70. The surprise factor in the prior quarter was $0.12. Based on analyst estimates, the high estimate for the next quarter is $0.85 and the low estimate is $0.67. The average estimate for the next quarter is thus $0.79.

Summary of Insider Activity:

Insiders traded BAM stock several times over the past three months with 30 Buys and 0 Sells. In these transactions, 20,792 shares were bought while 0 shares were sold. The number of buy transactions has increased to 241 while that of sell transactions has risen to 50 over the past year. The total number of shares bought during that period was 15,595,873 while 3,444,846 shares were sold.

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