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

On February 4, 2025, JPMorgan Chase & Co. announced a significant reduction in its stake in Brookfield Business Partners L.P. (NYSE: BBU). According to reports from Holdings Channel.com, the financial institution has decreased its ownership by an impressive 84.2% during the third quarter of the fiscal year. Following this decision, JPMorgan now holds 2,819 shares of Brookfield, a drop from the previous 15,079 shares sold within the same quarter. This adjustment values their holdings at approximately $66,000 based on the latest filing with the SEC.

Other institutional investors have also adjusted their positions in Brookfield Business Partners in recent months. Notably, Brookfield Corp ON raised its holdings by 1.7%, now owning 25,602,504 shares worth around $596,538,000 after acquiring an additional 428,511 shares. Similarly, Toronto Dominion Bank made a substantial change, increasing its ownership by 12,276.3% during the third quarter and now holds 260,769 shares valued at $6,076,000 after buying an additional 258,662 shares. PCJ Investment Counsel Ltd. also increased its stake by 14.2%, holding 1,518,892 shares valued at $35,528,000 after adding 188,743 shares. Furthermore, BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp and Scheer Rowlett & Associates Investment Management Ltd. made increases of 13.6% and 14.7%, respectively, in their shares. Overall, institutional investors and hedge funds collectively own 85.04% of Brookfield’s stock.

Performance of Brookfield Business Partners

As of the latest trading session on Tuesday, shares of Brookfield Business Partners L.P. opened at $21.51. Over the past year, the company has experienced a low of $16.85 and reached a high of $26.75. The stock has a fifty-day simple moving average of $23.24 and a 200-day simple moving average of $22.36. With a market capitalization of $1.60 billion, the firm reports a price-to-earnings (PE) ratio of -43.89 and a beta of 1.50. Additionally, Brookfield’s financial health appears balanced with a quick ratio of 0.95 and a current ratio of 1.17, alongside a debt-to-equity ratio of 2.12.

In its most recent earnings report on January 31, 2025, Brookfield Business Partners posted earnings of $1.47 per share, significantly exceeding analysts' expected consensus of $0.14 by $1.33. The company's net margin stands at 2.20%, and its return on equity is reported at 5.00%. Analysts predict that for the current year, Brookfield Business Partners will achieve an earnings per share (EPS) of 5.26.

Dividend Update from Brookfield

In recent announcements, Brookfield Business Partners declared a quarterly dividend to be paid on March 31. Shareholders on record by February 28 will receive a dividend of $0.0625 per share, translating to an annualized dividend of $0.25, which provides a dividend yield of 1.16%. The ex-dividend date is set for February 28, and it is reported that the company's dividend payout ratio currently stands at -51.02%.

Analysts Outlook for Brookfield Business Partners

Market analysts have been monitoring Brookfield closely and recently updated their target prices for the stock. BMO Capital Markets increased its price target from $32.00 to $34.00 while maintaining an “outperform” rating in a report released on January 10. Additionally, Royal Bank of Canada revised its target down to $30.00, while also assigning an “outperform” rating. Scotiabank made a similar move by raising their target price from $32.00 to $33.00, supporting a “sector outperform” rating for the company. Currently, five analysts recommend a buy rating on Brookfield’s stock, contributing to an overall consensus rating of “Buy” with an average target price estimated at $32.60.

About Brookfield Business Partners

Brookfield Business Partners L.P. operates as a private equity firm with a focus on acquisitions, particularly in business services, infrastructure services, construction, energy, and the industrial sector. The firm is known for taking majority stakes in the companies it invests in and aims for a minimum return of 15% on its investments.

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JPMorgan, Brookfield, Investment