Bright Horizons Family Solutions (NYSE:BFAM) Shares Gap Down – Should You Sell?

Bright Horizons Family Solutions Inc. (NYSE:BFAM) shares gapped down before the market opened on Friday . The stock had previously closed at $81.83, but opened at $74.32. Bright Horizons Family Solutions shares last traded at $67.3940, with a volume of 810,887 shares.

Key Bright Horizons Family Solutions News

Here are the key news stories impacting Bright Horizons Family Solutions this week:

• Positive Sentiment: Q4 results slightly beat expectations: GAAP EPS $1.15 vs. consensus ~$1.13 and revenue $733.7M vs. ~$727M; revenue was up ~9.2% year‑over‑year — the beat shows continued top‑line momentum. Bright Horizons Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: FY‑2026 guidance: management is targeting roughly $3.1B in revenue and $4.90–$5.10 in EPS, giving investors forward revenue and profit targets to model against. Bright Horizons targets $3.1B revenue and $5-10 EPS for 2026
• Neutral Sentiment: Guidance is roughly in line with Street consensus (consensus EPS ~4.92), so while not a positive surprise it gives clarity; investors will watch execution against that midpoint. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Shares fell to a 52‑week low on the print — headlines and selling pressure amplified the move despite the modest beat, suggesting the market focused on signs of slowing momentum or mixed details in the call. Bright Horizons Shares Drop to 52-Week Low After 4Q Earnings Decline
• Negative Sentiment: Management noted portfolio rationalization steps (asset/portfolio changes) that may create near‑term execution risk and one‑time costs, adding uncertainty about margin trajectory. Portfolio rationalization coverage
• Negative Sentiment: Investor/legal risk: a shareholder law‑firm notice (Scott+Scott) is investigating directors and officers for potential breaches, which can be an overhang until resolved. Investor Alert: Scott+Scott Investigates Bright Horizons

Wall Street Analysts Forecast Growth

BFAM has been the subject of several analyst reports. UBS Group set a $93.00 price objective on Bright Horizons Family Solutions in a research note on Friday. The Goldman Sachs Group cut their price target on Bright Horizons Family Solutions from $130.00 to $112.00 and set a “buy” rating for the company in a research note on Friday. Robert W. Baird set a $100.00 price objective on shares of Bright Horizons Family Solutions in a research report on Friday. Morgan Stanley set a $70.00 price objective on shares of Bright Horizons Family Solutions in a research report on Friday. Finally, Wall Street Zen downgraded shares of Bright Horizons Family Solutions from a “buy” rating to a “hold” rating in a report on Sunday, November 30th. Three analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Bright Horizons Family Solutions presently has an average rating of “Hold” and an average price target of $111.63.

Bright Horizons Family Solutions Trading Down 20.0%

The firm has a market cap of $3.70 billion, a price-to-earnings ratio of 18.82, a PEG ratio of 0.99 and a beta of 1.40. The business has a fifty day moving average of $96.75 and a two-hundred day moving average of $104.23. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.54 and a current ratio of 0.54.

Bright Horizons Family Solutions (NYSE:BFAM) last posted its earnings results on Thursday, February 12th. The company reported $1.15 EPS for the quarter, topping analysts’ consensus estimates of $1.13 by $0.02. Bright Horizons Family Solutions had a return on equity of 17.07% and a net margin of 6.98%.The company had revenue of $733.70 million for the quarter, compared to the consensus estimate of $727.44 million. During the same period in the previous year, the business earned $0.98 earnings per share. Bright Horizons Family Solutions’s quarterly revenue was up 9.2% compared to the same quarter last year. Bright Horizons Family Solutions has set its FY 2026 guidance at 4.900-5.100 EPS. As a group, equities analysts expect that Bright Horizons Family Solutions Inc. will post 3.61 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Bright Horizons Family Solutions

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Financial Consulate Inc. acquired a new stake in shares of Bright Horizons Family Solutions in the third quarter valued at approximately $26,000. TruNorth Capital Management LLC acquired a new stake in Bright Horizons Family Solutions during the 3rd quarter valued at $28,000. Geneos Wealth Management Inc. grew its holdings in Bright Horizons Family Solutions by 98.8% during the 1st quarter. Geneos Wealth Management Inc. now owns 336 shares of the company’s stock valued at $43,000 after buying an additional 167 shares during the last quarter. Rothschild Investment LLC increased its position in Bright Horizons Family Solutions by 6,700.0% during the third quarter. Rothschild Investment LLC now owns 340 shares of the company’s stock worth $37,000 after buying an additional 335 shares in the last quarter. Finally, SJS Investment Consulting Inc. raised its holdings in shares of Bright Horizons Family Solutions by 9,075.0% in the third quarter. SJS Investment Consulting Inc. now owns 367 shares of the company’s stock worth $40,000 after acquiring an additional 363 shares during the last quarter.

Bright Horizons Family Solutions Company Profile

Bright Horizons Family Solutions, Inc (NYSE: BFAM) is a leading provider of employer-sponsored child care and early education services, offering a range of solutions designed to support working families and organizations. Through a network of on-site, near-site and center-based programs, the company partners with corporate and nonprofit clients to deliver infant, toddler, preschool and school-age care. Services emphasize age-appropriate curriculum, developmental milestones and community engagement to ensure high-quality learning experiences.