Brookfield Asset Management to enter the INK Cdn Insider Index

Brookfield Asset Management to enter the INK Cdn Insider Index

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Brookfield Asset Management (BAM) will be one of four Financials stocks joining the INK Canadian Insider (CIN) Index when it undergoes its quarterly rebalancing after the close on February 16th (read the rebalancing announcement at index.inkresearch.com). The old Brookfield Asset Management split into two companies on December 9, 2022. January 2nd morning report stock Brookfield Corporation (Sunny; BN) owns 75% of Brookfield Asset Management ULC which is the legacy asset management business of the old Brookfield. The new Brookfield Asset Management (BAM) owns the remaining 25% and has an Asset Management Services Agreement to provide services to Brookfield Asset Management ULC. 

On February 7th, BAM reported Q4 earnings of US$0.24 per diluted share (no comparative period is applicable). It also announced a quarterly dividend of US$0.38 per share, payable on March 28th to shareholders of record as of the close of business on February 29th. That represents a 19% increase from its Q4 dividend. The jump comes as total revenues at Brookfield Asset Management ULC inched higher in Q4 to US$1.130 billion from US$1.117 billion a year earlier. The Brookfield Asset Management ULC business appears to have a bit of momentum behind it. Fee-bearing capital at Brookfield Asset Management ULC stood at US$457 billion at the end of Q4, up 4% from Q3 and 9% from a year earlier. Asset classes under management include Credit, Real Estate, Infrastructure, Renewable Power & Transition, and Private Equity. Meanwhile, BAM's share price also has a bit of momentum, up 26.8% over the past three months. Insiders have also recently been net acquirers of stock via options, helping to nudge BAM into the INK CIN Index.

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From August 31st to December 15th, three Brookfield Asset Management insiders acquired a total of 337,449 Class A Limited Voting Shares through options exercises at an average exercise price of US$14.02. 

Over the same period, the same insiders sold a total of 326,377 Class A Limited Voting Shares at an average price of $49.07. 

Brookfield Asset Management has above median ownership (direct & indirect holdings) by Officers and Directors compared to other large-cap stocks in the Financials sector according to SEDI filings as of February 11th, 2024. 

Brookfield Asset Management currently holds a sunny INK Edge outlook on the equally weighted V.I.P. criteria of valuations, insider commitment, and price momentum which places it in the top 10% of all stocks ranked. INK outlook categories are designed to identify groups of stocks that have the potential to out or underperform the market. However, any individual stock could surprise on the up or downside. As such, outlook categories are not meant to be stock-specific recommendations. 

For background on our INK Edge outlook, please visit our FAQ #3 at inkresearch.com. 

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Source

INK Research