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

Bright Horizons Family Solutions Inc. (NYSE:BFAM) gapped down prior to trading 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 trading hands.

More Bright Horizons Family Solutions News

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

• Positive Sentiment: Q4 results narrowly beat expectations — EPS $1.15 vs. $1.13 consensus and revenue $733.7M (revenue +9.2% YoY), showing underlying demand strength. Bright Horizons Family Solutions (BFAM) Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Management set FY2026 EPS guidance of $4.90–$5.10 and revenue target near $3.1B, implying continued earnings recovery and mid-single-digit top-line growth. Bright Horizons Family Solutions Inc (BFAM) Q4 2025 Earnings Call Highlights: Strong Revenue …
• Neutral Sentiment: Guidance is roughly in line with street estimates (consensus ~4.92 EPS) — not a meaningful raise, which may temper enthusiasm despite the beat. Bright Horizons targets $3.1B revenue and $5.10 EPS for 2026 while advancing portfolio rationalization
• Neutral Sentiment: Company is advancing a portfolio rationalization program — could improve margins long term but creates near-term uncertainty about dispositions and execution. Bright Horizons targets $3.1B revenue and $5.10 EPS for 2026 while advancing portfolio rationalization
• Negative Sentiment: Shares fell to a 52-week low after the results; market reaction reflects disappointment that the beat didn’t translate into stronger forward optimism. Bright Horizons Shares Drop to 52-Week Low After 4Q Earnings Decline
• Negative Sentiment: An investor alert notes a probe into Bright Horizons’ directors and officers (Scott+Scott), which adds legal/rep risk and may increase short-term selling pressure. BRIGHT HORIZONS FAMILY SOLUTIONS INC. INVESTOR ALERT: Scott+Scott Attorneys at Law LLP Investigates…
• Neutral Sentiment: Earnings call transcript and analyses are available for detail-oriented investors evaluating margin drivers and the cadence of portfolio actions. BFAM Q4 2025 Earnings Call Transcript

Analyst Ratings Changes

BFAM has been the subject of a number of research analyst reports. Deutsche Bank Aktiengesellschaft set a $99.00 target price on Bright Horizons Family Solutions and gave the company a “hold” rating in a research report on Friday. The Goldman Sachs Group decreased their price objective on Bright Horizons Family Solutions from $130.00 to $112.00 and set a “buy” rating for the company in a report on Friday. Zacks Research cut shares of Bright Horizons Family Solutions from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 30th. UBS Group set a $93.00 price target on shares of Bright Horizons Family Solutions in a research note on Friday. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Bright Horizons Family Solutions from $156.00 to $160.00 and gave the company an “overweight” rating in a research note on Friday, October 31st. Three investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $111.63.

Bright Horizons Family Solutions Stock Performance

The stock’s 50-day moving average is $96.02 and its 200 day moving average is $103.86. The stock has a market cap of $3.79 billion, a price-to-earnings ratio of 19.94, a P/E/G ratio of 0.81 and a beta of 1.40. The company has a debt-to-equity ratio of 0.52, a current ratio of 0.54 and a quick ratio of 0.54.

Bright Horizons Family Solutions (NYSE:BFAM) last issued its earnings results on Thursday, February 12th. The company reported $1.15 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.13 by $0.02. Bright Horizons Family Solutions had a return on equity of 17.27% and a net margin of 6.58%.The business had revenue of $733.70 million during the quarter, compared to the consensus estimate of $727.44 million. During the same period in the prior year, the business posted $0.98 EPS. The company’s revenue for the quarter was up 9.2% on a year-over-year basis. Bright Horizons Family Solutions has set its FY 2026 guidance at 4.900-5.100 EPS. As a group, analysts predict that Bright Horizons Family Solutions Inc. will post 3.61 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Bright Horizons Family Solutions

A number of hedge funds and other institutional investors have recently modified their holdings of BFAM. Universal Beteiligungs und Servicegesellschaft mbH increased its position in Bright Horizons Family Solutions by 24.5% during the third quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 56,252 shares of the company’s stock worth $6,107,000 after purchasing an additional 11,085 shares during the last quarter. Y Intercept Hong Kong Ltd acquired a new position in shares of Bright Horizons Family Solutions in the 3rd quarter valued at $2,768,000. Conestoga Capital Advisors LLC grew its stake in shares of Bright Horizons Family Solutions by 2.6% during the 3rd quarter. Conestoga Capital Advisors LLC now owns 880,580 shares of the company’s stock valued at $95,605,000 after buying an additional 22,570 shares during the period. Assenagon Asset Management S.A. increased its holdings in shares of Bright Horizons Family Solutions by 503.8% during the 3rd quarter. Assenagon Asset Management S.A. now owns 159,540 shares of the company’s stock worth $17,321,000 after buying an additional 133,119 shares during the last quarter. Finally, CWM LLC raised its position in shares of Bright Horizons Family Solutions by 86.5% in the 3rd quarter. CWM LLC now owns 33,131 shares of the company’s stock worth $3,597,000 after buying an additional 15,368 shares during the period.

About Bright Horizons Family Solutions

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.