Mary Lou Burke, the Chief Operating Officer for North America Center Operations at Bright Horizons (NYSE:BFAM) Family Solutions Inc. (NYSE:BFAM), has reported the sale of company stock valued at approximately $103,072. According to a recent filing, Burke sold 800 shares of common stock at a price of $128.84 per share on November 5, 2024. Following this transaction, Burke retains direct ownership of 30,225 shares in the company.
The sale was conducted under a pre-established trading plan in compliance with Rule 10b5-1(c), which was adopted on March 11, 2024. This plan allows company insiders to set up a predetermined schedule for selling stocks to avoid potential conflicts of interest.
In addition to her direct holdings, Burke also holds 1,320 shares indirectly as a custodian for her daughter under the Uniform Transfers to Minors Act (UTMA).
In other recent news, Bright Horizons Family Solutions Inc. reported an 11% increase in third-quarter revenue for 2024, reaching $719 million, with its backup care segment contributing significantly with an 18% rise in revenue to $202 million. The adjusted earnings per share (EPS) also saw a 26% growth, hitting $1.11. However, despite low single-digit enrollment growth and a seasonal drop in average occupancy, the company refined its full-year revenue guidance to approximately $2.675 billion and adjusted EPS to a range of $3.37 to $3.42.
Analysts from Baird, Jefferies, and Goldman Sachs have been closely monitoring these developments. Baird raised Bright Horizons' stock target to $140, but maintained a Neutral rating due to mixed outcomes in the Full Service childcare segment. Both Jefferies and Goldman Sachs maintained their Buy ratings, with Jefferies setting a price target of $155 and Goldman Sachs at $162, highlighting the company's robust performance and potential for margin improvement.
Looking ahead, Bright Horizons anticipates continued low single-digit enrollment growth and expects price increases to taper from 5% to around 4% in 2025. These recent developments underscore the company's ongoing efforts to navigate the post-COVID landscape and optimize financial performance.
InvestingPro Insights
As Mary Lou Burke, the COO for North America Center Operations at Bright Horizons Family Solutions Inc. (NYSE:BFAM), sells a portion of her holdings, investors might be interested in additional context about the company's financial performance and valuation.
According to InvestingPro data, Bright Horizons has a market capitalization of $6.73 billion and has shown strong revenue growth of 12.67% over the last twelve months as of Q3 2024. This growth is reflected in the company's stock performance, with a remarkable 54.44% price total return over the past year.
However, investors should note that BFAM is trading at a high P/E ratio of 71.01, which is significantly above the market average. This valuation is supported by an InvestingPro Tip indicating that the company is "Trading at a high earnings multiple." Another relevant InvestingPro Tip suggests that "Net income is expected to grow this year," which could justify the premium valuation if realized.
For those considering an investment in Bright Horizons, it's worth noting that InvestingPro offers 12 additional tips for BFAM, providing a more comprehensive analysis of the company's financial health and market position.
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