JPMorgan Chase Reduces Stake in Brookfield Business Partners L.P.

On February 4, 2025, it was reported that JPMorgan Chase & Co. significantly decreased its investment in Brookfield Business Partners L.P. (NYSE:BBU) by an impressive 84.2% during the third quarter, according to findings from Holdings Channel.com. Following this sell-off, JPMorgan now holds only 2,819 shares of Brookfield Business Partners, after divesting 15,079 shares throughout the quarter. The total value of these remaining shares was approximately $66,000 based on the latest filing with the SEC.

Other large investors have also adjusted their portfolios concerning Brookfield Business Partners recently. For instance, Brookfield Corp ON increased its holdings by 1.7%, acquiring an additional 428,511 shares, bringing its total to 25,602,504 shares valued at $596,538,000. Meanwhile, Toronto Dominion Bank made a considerable move by boosting its stakes dramatically—by 12,276.3%—now owning 260,769 shares worth $6,076,000 after purchasing an extra 258,662 shares during the same quarter.

Moreover, PCJ Investment Counsel Ltd. raised its holdings in the company by 14.2%, with 1,518,892 shares valued at $35,528,000 following an additional purchase of 188,743 shares. Similarly, the British Columbia Investment Management Corp increased its ownership by 13.6%, now holding 773,975 shares worth $18,145,000, up from an increase of 92,413 shares. Lastly, Scheer Rowlett & Associates Investment Management Ltd. raised its stake by 14.7% as well, now in possession of 641,835 shares valued at $15,047,000 after acquiring 82,372 additional shares. Notably, institutional investors and hedge funds own approximately 85.04% of Brookfield's stocks.

Recent Stock Performance

The stock of Brookfield Business Partners (NYSE:BBU) opened at $21.51 on the trading floor this Tuesday. Over the past twelve months, the shares have fluctuated, hitting a low of $16.85 and a high of $26.75. Currently, the company has a fifty-day moving average of $23.24 and a two-hundred-day moving average of $22.36. The market capitalization stands at around $1.60 billion, with a PE ratio of -43.89 and a beta of 1.50. Furthermore, the company’s quick ratio is 0.95, the current ratio is 1.17, and the debt-to-equity ratio reaches 2.12.

Brookfield Business Partners recently published their earnings results on January 31st, reporting earnings per share (EPS) of $1.47 for the quarter. This result significantly exceeded analysts' predictions of $0.14 by a notable $1.33. The company maintains a net margin of 2.20% and a return on equity of 5.00%. For the current year, analysts predict that Brookfield Business Partners L.P. will achieve an EPS of approximately 5.26.

Dividend Announcement

In recent news regarding dividends, Brookfield Business Partners has declared a quarterly dividend scheduled for payment on March 31st. Shareholders who are on record as of February 28th will receive a dividend of $0.0625 per share, equating to a total of $0.25 on an annualized basis and representing a dividend yield of 1.16%. Note that the ex-dividend date is also set for February 28th, with the company’s current dividend payout ratio recorded at -51.02%.

Analysts and Future Predictions

There have been updates from various research firms regarding Brookfield Business Partners shares. For instance, BMO Capital Markets raised its target price from $32.00 to $34.00 while maintaining an ‘outperform’ rating as of January 10th. Similarly, Royal Bank of Canada revised its target from $32.00 to $30.00 and also assigned an ‘outperform’ rating, while Scotiabank increased its price target from $32.00 to $33.00, keeping a ‘sector outperform’ rating for the company. Presently, five analysts have rated the stock as a buy, with one giving it a strong buy recommendation. According to MarketBeat data, the consensus rating for the stock is currently a ‘Buy’ with an average target price set at $32.60.

Company Overview

Brookfield Business Partners L.P. focuses on private equity investments, primarily in sectors like business services, infrastructure, construction, energy, and industrials. The firm typically seeks a majority stake in acquisition targets and aims for a minimum return of 15% on its investments.

Conclusion

This information highlights the current investment landscape surrounding Brookfield Business Partners, especially in light of recent maneuvers made by established financial institutions.

JPMorgan, Investment, Dividend