Fourth Sail Capital LP has established a significant new position in Brink’s Company (NYSE: BCO), acquiring 281,500 shares valued at approximately $25.1 million. This transaction occurred during the second quarter of 2023, as indicated in Fourth Sail’s most recent 13F filing with the Securities and Exchange Commission. Brink’s now constitutes around 5.2% of Fourth Sail’s investment portfolio, making it the firm’s fifth largest holding.
Several other institutional investors have also recently adjusted their positions in Brink’s. Trust Co. of Toledo NA, based in Ohio, acquired shares valued at about $32,000 in the same quarter. CWM LLC increased its stake in Brink’s by 53.8%, bringing its total ownership to 512 shares worth approximately $46,000 after purchasing an additional 179 shares. Similarly, Parkside Financial Bank & Trust expanded its holdings by 67.3%, owning 1,178 shares valued at $105,000 after acquiring 474 shares. GAMMA Investing LLC also raised its position by 27.8%, now holding 1,381 shares worth around $123,000. Lastly, Blue Trust Inc. increased its stake by 10.2%, owning 1,993 shares valued at $178,000. Overall, institutional investors now hold 94.96% of Brink’s stock.
In related news, Brink’s Director, Arthelbert Louis Parker, sold 540 shares on August 14, 2023, at an average price of $115.00, totaling $62,100. Following this transaction, Parker retained ownership of 6,603 shares valued at approximately $759,345, reflecting a 7.56% decrease in his position. Executive Vice President Daniel J. Castillo also sold 21,700 shares on August 15, 2023, at an average price of $109.70, amounting to $2.38 million. Castillo now holds 22,188 shares valued at around $2.43 million, representing a 49.44% reduction in his stake. In total, insiders have sold 23,781 shares valued at $2.62 million over the past three months, with insiders currently owning 0.49% of the company’s stock.
Brink’s Financial Performance and Dividend Declaration
Brink’s last reported its quarterly earnings on November 5, 2023, revealing earnings per share (EPS) of $2.08. This figure slightly underperformed against analysts’ expectations of $2.09. The company generated revenue of $1.34 billion, surpassing estimates of $1.33 billion. Brink’s reported a return on equity of 86.86% and a net margin of 3.21%, with quarterly revenue reflecting a 6.0% year-over-year increase. The company has set guidance for Q4 2025 EPS between $2.280 and $2.680.
In addition, Brink’s announced a quarterly dividend of $0.255 per share, scheduled for payment on December 1, 2023. Shareholders of record as of November 3, 2023 will receive this dividend, which represents an annualized dividend of $1.02 and a dividend yield of 0.9%. The company’s payout ratio stands at 26.09%.
Analyst Ratings and Market Outlook
Recent analyst reports indicate mixed opinions on Brink’s stock. Wall Street Zen upgraded Brink’s from a “hold” to a “strong-buy” rating on August 10, 2023, while Zacks Research downgraded it from “strong-buy” to “hold” on October 6, 2023. Weiss Ratings also adjusted its stance, upgrading Brink’s from a “hold (c+)” rating to a “buy (b-)” on October 24, 2023. Currently, one analyst has assigned a Buy rating, while another has issued a Hold rating. According to data from MarketBeat.com, Brink’s holds a consensus rating of “Moderate Buy.”
Brink’s Company, a provider of cash management services, digital retail solutions, and ATM managed services, operates across various geographical segments, including North America, Latin America, Europe, and the Rest of the World. The North America segment encompasses operations in the U.S. and Canada.
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