JPMorgan Chase Reduces Stake in Brookfield Business Partners L.P. (NYSE:BBU)

On February 4, 2025, it was reported that JPMorgan Chase & Co. has significantly reduced its stake in Brookfield Business Partners L.P. (NYSE:BBU – Free Report) by 84.2% during the third quarter. According to Holdings Channel, the institutional investor now holds 2,819 shares of Brookfield's stock after selling 15,079 shares in the quarter. As per the latest SEC filing, JPMorgan's holdings in Brookfield Business Partners are valued at approximately $66,000.

Other large investors have also adjusted their positions in Brookfield Business Partners. For instance, Brookfield Corp ON increased its stake by 1.7% during the third quarter, now owning 25,602,504 shares valued at $596,538,000 following the acquisition of an additional 428,511 shares. Similarly, Toronto Dominion Bank made a significant increase, raising its holdings by an astounding 12,276.3% in the same period. They now possess 260,769 shares worth $6,076,000 after an additional purchase of 258,662 shares. Furthermore, PCJ Investment Counsel Ltd. raised its investment by 14.2%, acquiring 188,743 more shares, and now holds 1,518,892 shares valued at $35,528,000.

The British Columbia Investment Management Corporation also increased its holdings in Brookfield by 13.6%, now owning 773,975 shares worth $18,145,000. Additionally, Scheer Rowlett & Associates Investment Management Ltd. increased its stake by 14.7%, currently holding 641,835 shares valued at $15,047,000. Overall, institutional investors and hedge funds now own about 85.04% of Brookfield Business Partners' stock.

Stock Performance of Brookfield Business Partners

As of Tuesday, shares of NYSE BBU opened at $21.51. The stock has experienced a twelve-month low of $16.85 and a high of $26.75. Its fifty-day simple moving average is $23.24, while the 200-day simple moving average stands at $22.36. Brookfield Business Partners has a market capitalization of $1.60 billion, with a PE ratio of -43.89 and a beta of 1.50. The company's quick ratio is 0.95, while its current ratio is 1.17, and it carries a debt-to-equity ratio of 2.12.

On January 31, Brookfield Business Partners reported their earnings results, showing earnings per share of $1.47 for the quarter. This result surpassed analysts’ predictions of $0.14 by $1.33. The company’s net margin is 2.20%, and its return on equity is 5.00%. Looking forward, sell-side analysts estimate that Brookfield Business Partners will achieve an EPS of 5.26 for the current fiscal year.

Dividend Announcement from Brookfield Business Partners

Recently, the company announced a quarterly dividend to be paid on March 31. Shareholders on record as of February 28 will receive a dividend of $0.0625 per share, which translates to an annualized amount of $0.25 and a yield of 1.16%. The ex-dividend date is also February 28, and currently, Brookfield Business Partners has a negative dividend payout ratio of -51.02%.

Growth Projections from Analysts

Several research firms have provided insights on Brookfield Business Partners. On January 10, BMO Capital Markets raised their target price from $32.00 to $34.00, rating the stock as “outperform”. Meanwhile, Royal Bank of Canada lowered its target from $32.00 to $30.00 while maintaining its “outperform” rating. Scotiabank has also raised its target from $32.00 to $33.00, labeling it a “sector outperform”. Currently, five analysts have rated the stock as a buy, with one strong buy recommendation. According to MarketBeat, the stock holds a consensus rating of “Buy” with an average target price set at $32.60.

Company Overview: Brookfield Business Partners

Brookfield Business Partners L.P. is a private equity firm concentrated on acquisitions. The firm typically invests in sectors such as business services, infrastructure, construction, energy, and industrials. Demonstrating a preference for majority stakes, Brookfield aims to achieve returns of at least 15% on its investments.

Brookfield, JPMorgan, Investment