Brighthouse Financial, Inc. (BHF): Charged Down Insiders Sell Shares

Brighthouse Financial, Inc. (NASDAQ:BHF) is rated as Neutral by analysts at BofA/Merrill. The firm was pushed by the stock performance to change their PT view from $47 to $45 on November 06. Analysts at BofA/Merrill, started covering the stock on October 03 with a Neutral rating. The stock won favor of Credit Suisse analysts who expressed their confidence in it using an upgrade from Underperform to Neutral on August 15. Evercore ISI analysts came out with bullish views on June 29 when the call was made. They think the stock is now Outperform compared to to their prior call for In-line.

Brighthouse Financial, Inc. (BHF) hit an intraday high Thursday at $38.15. The shares finished at $35.82, after trading as low as $35.26 earlier in the session. It dropped -7.7% in recent trade and currently has a stock-market value of $4.29B. Trading activity significantly improved as the volume at ready counter increased to 3,500,218 shares versus 1,263,715 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,168,072 shares. The stock is now -4.94% above against its bear-market low of $37.68 on December 06, 2018. It has retreated -88.58% since it’s 52-week high of $67.55 reached in January. Now the market price is down -38.51% on the year and down -38.92% YTD.

BHF’s 50 day simple moving average (SMA 50) price is $41.64 and its 200-day simple moving average (SMA 200) price is $45.32. The company’s stock currently has a total float of 118.39M shares. Its weekly volatility is hovering around 4.33% and felt 3.73% volatility in price over a month. On the upside, the share price will test short term resistance at around $37.56. On a downside, the stock is likely to find some support, which begins at $34.67. The failure to get near-term support could push it to $33.52.

Separately, it has been reported that multiple insider activity took place at Brighthouse Financial, Inc. (BHF). Director, 10% Owner Metlife Inc sold 23,155,117 shares in transaction occurred on 2018/06/14. After making this transaction, the Director, 10% Owner owns a direct stake of 1,030,000,000 shares. On 2017/10/02 Dumais Lynn A., Chief Accounting Officer at BHF, dumped 38 shares at an average price of $60.99 per share. The selling total is valued at $40,512.

Director, Chaplin C Edward had invested in 2,000 shares for $2,000 through a trade on 2017/09/13. Following this activity, the insider holds 110,060 shares worth $71,640 as of recent close. Wall Street’s most bullish Brighthouse Financial, Inc. (NASDAQ:BHF) analysts are predicting the share price to blow past $56 per share during the next 12 months. The current median share price forecast by them is $49, suggesting that the stock could increase 36.8% in that time frame. The average price target of $48 calls for a nearly 34% increase in the stock price.

Moreover, it trades for 3.99 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.33x price/book and 0.63x price/sales. Compared to others, Brighthouse Financial, Inc. is in a different league with regards to profitability, having net margins of 1.3%. To put some perspective around this, the industry’s average net margin is 10.14%. BHF’s ROE is 0.7%, which is also considerably worse than the industry’s ROE of 11.42%.

Shares of Brighthouse Financial, Inc. (BHF) have dropped -8.9% since the company’s last earnings report. Over the past 5 fiscal quarters, Brighthouse Financial, Inc. (NASDAQ:BHF) has topped consensus earnings estimates in 3 quarters (60%), missed earnings in 2 quarters (40%), whereas at 0 occasion EPS met analyst expectations. BHF last reported earnings on November 05, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $2.23 per share, -73.23% change on the same period last year. That was better than consensus for $2.06. Revenue for the recent quarter stood at $2.09 billion, up 1% on last year and above the $2.06 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.03 billion to $2.09 billion, which should be compared with $2.1 billion generated last year. EPS is seen in a range of $1.56 to $2.34, against the $2.27 reported a year ago.