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Raymond James Downgraded Brunswick to ‘Market Perform’

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Brunswick’s price movement

Brunswick (BC) has a market cap of $4.1 billion. After Raymond James downgraded the stock to “market perform,” Brunswick fell by 2.2% to close at $44.52 per share as of January 11, 2016. The price movement on a weekly, monthly, and YTD (year-to-date) basis is -10.8%, -13.0%, and -11.9%, respectively.

Technically, the stock broke the support. It’s trading below all of the moving day averages. Currently, Brunswick is trading 9.9% below its 20-day moving average, 14.2% below its 50-day moving average, and 13.1% below its 200-day moving average.

The First Trust Mid Cap Growth AlphaDex ETF (FNY) invests 1.2% of its holdings in Brunswick. FNY tracks a tiered equal-weighted index of mid-cap growth stocks selected by S&P’s AlphaDex selection methodology from the S&P 400 Index. FNY’s YTD price movement is -5.9% as of January 8, 2016.

The First Trust Consumer Discretionary AlphaDEX ETF (FXD) invests 0.83% of its holdings in Brunswick. FXD tracks an index of large and mid-cap US Consumer Discretionary stocks. The underlying index uses a multifactor selection and tiered equal weighting.

Brunswick’s competitors and their market caps are:

  • Cummins (CMI) – $15.2 billion
  • Caterpillar (CAT) – $35.8 billion
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Raymond James downgraded Brunswick

Raymond James downgraded Brunswick from “outperform” to “market perform.”

Brunswick’s performance in fiscal 3Q15

Brunswick reported fiscal 3Q15 net sales of $991.9 million—a rise of 6.4% compared to net sales of $932.1 million in fiscal 3Q14. Its net income and EPS (earnings per share) fell to $75.9 million and $0.81, respectively, in fiscal 3Q15—compared to its net income and EPS of $104.4 million and $1.10, respectively, in fiscal 3Q14.

Meanwhile, its cash and cash equivalents and inventories rose by 4.3% and 6.1%, respectively, on a quarterly basis in fiscal 3Q15. Its DE (debt-to-equity) ratio rose to 1.42 in fiscal 3Q15—compared to the DE ratio of 1.39 in fiscal 3Q14.

Brunswick’s PE (price-to-earnings) and PBV (price-to-book value) ratios are 18.0x and 3.2x, respectively, as of January 11, 2016.

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