Bright Horizons Family Solutions (NYSE:BFAM) Price Target Cut to $80.00 by Analysts at The Goldman Sachs Group

Bright Horizons Family Solutions (NYSE:BFAM) had its price objective trimmed by The Goldman Sachs Group from $93.00 to $80.00 in a research report released on Friday morning,Benzinga reports. The firm currently has a buy rating on the stock.

A number of other equities research analysts also recently commented on the stock. BMO Capital Markets reiterated an “outperform” rating and set a $75.00 price target on shares of Bright Horizons Family Solutions in a report on Friday. UBS Group cut their price objective on shares of Bright Horizons Family Solutions from $88.00 to $78.00 and set a “neutral” rating for the company in a research report on Wednesday, October 14th. Weiss Ratings reissued a “sell (d+)” rating on shares of Bright Horizons Family Solutions in a research note on Tuesday. Robert W. Baird lowered shares of Bright Horizons Family Solutions from an “outperform” rating to a “neutral” rating and decreased their target price for the stock from $98.00 to $65.00 in a research report on Friday. Finally, Morgan Stanley decreased their target price on shares of Bright Horizons Family Solutions from $66.00 to $64.00 and set an “underweight” rating on the stock in a research report on Tuesday, October 13th. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $81.75.

Bright Horizons Family Solutions Stock Down 17.9%

BFAM opened at $55.01 on Friday. The firm has a market cap of $2.68 billion, a P/E ratio of 14.50, a PEG ratio of 1.02 and a beta of 1.18. The business’s fifty day simple moving average is $68.36 and its 200 day simple moving average is $74.27. Bright Horizons Family Solutions has a 52 week low of $52.10 and a 52 week high of $109.86. The company has a quick ratio of 0.48, a current ratio of 0.48 and a debt-to-equity ratio of 1.14.

Bright Horizons Family Solutions (NYSE:BFAM) last announced its earnings results on Thursday, October 29th. The company reported $1.80 earnings per share for the quarter, beating the consensus estimate of $1.76 by $0.04. The firm had revenue of $841.47 million during the quarter, compared to the consensus estimate of $842.69 million. Bright Horizons Family Solutions had a negative net margin of 4.38% and a positive return on equity of 21.11%. The firm’s revenue for the quarter was up 4.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.57 EPS. As a group, equities research analysts anticipate that Bright Horizons Family Solutions will post 4.70 EPS for the current fiscal year.

Insider Transactions at Bright Horizons Family Solutions

In other Bright Horizons Family Solutions news, Director Mary Tocio sold 6,000 shares of the business’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $72.65, for a total transaction of $435,900.00. Following the completion of the sale, the director owned 14,329 shares of the company’s stock, valued at approximately $1,041,001.85. The trade was a 29.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Mary Burke sold 1,200 shares of the company’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $75.00, for a total value of $90,000.00. Following the sale, the chief operating officer owned 30,945 shares of the company’s stock, valued at $2,320,875. This represents a 3.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 8,400 shares of company stock valued at $616,584. 1.42% of the stock is owned by company insiders.

Institutional Trading of Bright Horizons Family Solutions

Institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. acquired a new stake in Bright Horizons Family Solutions in the 2nd quarter valued at $452,317,000. Bamco Inc. NY purchased a new position in Bright Horizons Family Solutions in the second quarter valued at about $74,789,000. William Blair Investment Management LLC purchased a new position in Bright Horizons Family Solutions in the second quarter valued at about $58,093,000. Jupiter Topco LLC purchased a new position in Bright Horizons Family Solutions in the second quarter valued at about $49,561,000. Finally, Giverny Capital Inc. lifted its stake in shares of Bright Horizons Family Solutions by 45.6% during the second quarter. Giverny Capital Inc. now owns 1,080,793 shares of the company’s stock worth $76,607,000 after purchasing an additional 338,464 shares in the last quarter.

Key Bright Horizons Family Solutions News

Here are the key news stories impacting Bright Horizons Family Solutions this week:

• Positive Sentiment: Third-quarter adjusted earnings were $1.80 per share, exceeding the $1.76 consensus estimate and improving from $1.57 a year earlier. Revenue increased 4.8% year over year to $841.5 million, although it was slightly below expectations. Bright Horizons Q3 earnings beat estimates
• Positive Sentiment: Goldman Sachs maintained a Buy rating despite reducing its price target from $93 to $80, leaving substantial potential upside based on the referenced price. Goldman Sachs recommendation
• Neutral Sentiment: Management’s earnings call addressed the quarter’s performance and capital allocation, including the company’s response to setbacks in Australia. Bright Horizons Q3 earnings call transcript
• Neutral Sentiment: BFAM trading was temporarily halted twice under LULD volatility controls. The halts do not indicate a fundamental business change but underscore elevated trading volatility.
• Negative Sentiment: Bright Horizons swung to a third-quarter loss after recording a substantial $290 million impairment charge, which likely weighed heavily on investor sentiment. Bright Horizons Q3 impairment charge
• Negative Sentiment: The company expects fiscal 2026 revenue of approximately $3.07 billion, below the roughly $3.10 billion FactSet estimate, suggesting softer-than-expected growth. Bright Horizons fiscal 2026 revenue outlook
• Negative Sentiment: Morgan Stanley lowered its price target from $64 to $57 and assigned an Underweight rating. Goldman’s target cut also reflects more cautious valuation expectations, despite its continued Buy rating. Morgan Stanley recommendation

About Bright Horizons Family Solutions

Bright Horizons Family Solutions Inc provides employer-sponsored child care and workplace support services. The company operates early education and preschool centers that serve infants, toddlers, preschoolers and school-age children, with programs designed to support children’s development and learning.

Its services also include back-up care for children and other dependents, typically provided through a network of child care centers, in-home caregivers and other providers. Through its Bright Horizons EdAssist Solutions business, the company offers education advising, tuition assistance administration, student loan support and related workforce education services for employers and their employees.

Founded in 1986, Bright Horizons serves families and corporate clients primarily in the United States and also has operations in the United Kingdom and other international markets.