Ready to Jump After Recent Trade: Bloomin’ Brands Inc. (BLMN)

Bloomin’ Brands Inc. (NASDAQ: BLMN) stock fell -3.15% on Tuesday to $23.40 against a previous-day closing price of $24.16. With 1.18 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.59 million shares. During the session, the Restaurants company that operates in wider Consumer Cyclical sector, reached to the highest price of $24.26 whereas the lowest price it dropped to was $23.04. The 52-week range on BLMN shows that it touched its highest point at $25.51 and its lowest point at $15.89 during that stretch. It currently has a 1-year price target of $27.04. With its current market cap of 2.00 billion, BLMN has annualized dividend of $0.56 while the current yield stands at 2.39%. Beta for the stock currently stands at 1.85.

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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 BLMN was down-trending over the past week, with a drop of -1.39%, but this was up by 15.10% over a month. Three-month performance surged to 10.74% while six-month performance rose 29.07%. The stock gained 21.24% in the past year, while it has gained 16.30% so far this year. A look at the trailing 12-month EPS for BLMN yields 0.94 with Next year EPS estimates of 2.73. For the next quarter, that number is 0.65. This implies an EPS growth rate of 208.00% for this year and 10.00% for next year. EPS is expected to grow by 0.32% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 42.20%.

Float and Shares Shorts:

At present, 89.19 million BLMN shares are outstanding with a float of 83.85 million shares on hand for trading. On Oct 13, 2022, short shares totaled 10.35 million, which was 11.59% higher than short shares on Sep 14, 2022. In addition to Mr. David J. Deno as the firm’s CEO & Director, Mr. Christopher Adkins Meyer serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 102.97% of BLMN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.38% of BLMN, in contrast to 51.49% held by mutual funds. Shares owned by individuals account for 39.85%. As the largest shareholder in BLMN with 14.68% of the stake, BlackRock Fund Advisors holds 12,888,089 shares worth 12,888,089. A second-largest stockholder of BLMN, The Vanguard Group, Inc., holds 9,649,681 shares, controlling over 10.99% of the firm’s shares. ClearBridge Investments LLC is the third largest shareholder in BLMN, holding 6,060,080 shares or 6.90% stake. With a 7.39% stake in BLMN, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 6,483,729 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.05% of BLMN stock, is the second-largest Mutual Fund holder. It holds 2,680,832 shares valued at 53.94 million. Vanguard Small Cap Index Fund holds 2.58% of the stake in BLMN, owning 2,262,092 shares worth 45.51 million.


Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BLMN since 13 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 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 BLMN analysts setting a high price target of $35.00 and a low target of $23.00, the average target price over the next 12 months is $27.17. Based on these targets, BLMN could surge 49.57% to reach the target high and fall by -1.71% to reach the target low. Reaching the average price target will result in a growth of 16.11% 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. BLMN will report FY 2022 earnings on 02/16/2024. Analysts have provided yearly estimates in a range of $2.52 being high and $2.33 being low. For BLMN, this leads to a yearly average estimate of $2.48. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Bloomin’ Brands Inc. surprised analysts by $0.01 when it reported $0.35 EPS against a consensus estimate of $0.34. The surprise factor in the prior quarter was $0.06. Based on analyst estimates, the high estimate for the next quarter is $0.69 and the low estimate is $0.50. The average estimate for the next quarter is thus $0.64.


Dividends & Yield:

In terms of dividends, BLMN has a current ratio of $0.56, which is $0.56 over the trailing 12-months, while a dividend of $0.36 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and BLMN currently yields $2.39. In the past year, BLMN’s dividend yield has been $2.39, but when looking at the stock over the past five years, its yield has been $2.04. Accordingly, BLMN has a current buyback yield of $3.89. This was $3.89 for the TTM, and it was $5.53 for the past five years.

Summary of Insider Activity:

Insiders traded BLMN stock several times over the past three months with 8 Buys and 8 Sells. In these transactions, 541,038 shares were bought while 725,497 shares were sold. The number of buy transactions has increased to 61 while that of sell transactions has risen to 43 over the past year. The total number of shares bought during that period was 1,176,252 while 1,186,828 shares were sold.

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