Why Broadridge Financial Shares Are Diving Today
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 08 2024
0mins
Should l Buy BR?
- Broadridge Financial Solutions Inc Q3 FY24 Results:
- Reported revenue growth of 5% to $1.726 billion, missing consensus.
- Recurring revenues increased by 4% Y/Y to $1.13 billion.
- Adjusted operating income rose 7% Y/Y to $370 million with an expanded margin.
- Adjusted EPS of $2.23 (+9% Y/Y) missed the consensus of $2.24.
- FY24 Outlook: Expects adjusted recurring revenue growth at the low end of prior guidance and reiterated other financial targets.
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Analyst Views on BR
Wall Street analysts forecast BR stock price to rise
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 187.510
Low
240.00
Averages
267.80
High
305.00
Current: 187.510
Low
240.00
Averages
267.80
High
305.00
About BR
Broadridge Financial Solutions, Inc. is a global financial technology company. It delivers technology-driven solutions to banks, broker-dealers, and asset and wealth managers. Its segments include Investor Communication Solutions (ICS) and Global Technology and Operations. Its ICS segment provides Regulatory Solutions, Data-Driven Fund Solutions, Corporate Issuer Solutions, and Customer Communications Solutions. ICS business involves the processing and distribution of proxy materials to investors in equity securities and mutual funds, and the facilitation of related vote processing. The Global Technology and Operations business offers mission-critical, scale infrastructure to the global financial markets. Its component-based platform automates the front-to-back transaction lifecycle of equity, mutual fund, fixed income, and foreign exchange and exchange-traded derivatives. It also specializes in participant onboarding, engagement, and analytics solutions for the retirement industry.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Broadridge Enhances ProxyVote with Pass-Through Voting for Individual Investors
- Voting Capability Enhancement: Broadridge Financial Solutions has significantly upgraded its ProxyVote platform by enhancing Pass-Through Voting capabilities, allowing millions of individual investors to select their voting policies immediately after completing their proxy ballots, thereby increasing investor engagement and choice.
- Pioneering Implementation: Vanguard will be the first asset manager to implement this new capability as part of its Vanguard Investor Choice program, streamlining the voting process for investors holding Vanguard funds on third-party platforms, thus amplifying investor voices in corporate governance.
- Growing Market Demand: Broadridge's Pass-Through Voting solution is currently available to over 600 funds with more than $8 trillion in assets, indicating strong demand from asset managers to offer this critical choice to their shareholders, with rapid growth from just 100 funds two years ago.
- Future Expansion Plans: Following the upcoming proxy season, additional asset managers are expected to integrate this functionality, further expanding the reach of Pass-Through Voting across Broadridge's global network, benefiting millions of investors worldwide.
See More
Broadridge Appoints Allen Weinberg as Chief Growth and Strategy Officer
- Executive Appointment: Broadridge Financial Solutions has appointed Allen Weinberg as Chief Growth and Strategy Officer, aimed at accelerating sustainable growth and enhancing profitability, thereby strengthening the company's competitive position in the rapidly evolving fintech sector.
- Strategic Execution: In his new role, Weinberg will closely collaborate with the leadership team to implement the company's strategic priorities, ensuring alignment with industry dynamics while identifying and evaluating new market and product opportunities.
- Rich Experience: Previously a Senior Partner at McKinsey & Company, Weinberg focused on digital, AI, and analytics practices, bringing extensive technology transformation experience that will provide strategic insights and a disciplined approach to Broadridge's long-term growth strategy.
- Functional Adjustment: This appointment allows Germán Soto Sanchez to concentrate on leading product and enterprise platforms, advancing the company's tokenization initiatives, and further enhancing Broadridge's product and enterprise platform capabilities.
See More
Broadridge Enhances ProxyVote with Pass-Through Voting
- Voting Capability Enhancement: Broadridge Financial Solutions has launched an enhanced Pass-Through Voting feature on its ProxyVote platform, allowing millions of individual investors to select their voting policies immediately after completing their proxy ballots, thereby increasing investor engagement and choice.
- Pioneering Implementation: Vanguard will be the first asset manager to implement this feature as part of its Vanguard Investor Choice program, simplifying the voting process for investors holding Vanguard funds on third-party platforms and amplifying their voices in corporate governance.
- Growing Market Demand: Broadridge's Pass-Through Voting solution is currently available for over 600 funds, managing more than $8 trillion in assets, a significant increase from 100 funds two years ago, indicating strong demand from asset managers for this critical choice.
- Global Network Expansion: More asset managers are expected to integrate this feature following the upcoming proxy season, with Broadridge's global network reaching over 1,100 banks and broker-dealers, further extending the impact of Pass-Through Voting and empowering individual investors in corporate governance.
See More
Financial Services Industry Accelerates Technology Transformation
- Accelerated AI Adoption: 80% of financial services firms report using generative or predictive AI in operations, a significant increase from 31% last year, indicating a rapid shift from pilot programs to enterprise deployment, which is expected to enhance productivity and operational efficiency.
- Tokenization Momentum: Over 54% of firms have made moderate to large investments in tokenization and digital asset infrastructure, signaling a transition from exploration to scaled buildout, with expectations that major asset classes will be tokenized within the next four to five years.
- Execution Challenges: 84% of firms emphasize the importance of integrated platforms, and 43% expect to rebuild core systems to support AI-driven operating models, highlighting challenges in execution capabilities, particularly due to a shortage of skilled talent.
- Structural Market Changes: As AI becomes embedded, the financial market infrastructure is undergoing structural evolution, with 70% of firms believing that external partnerships will be critical for capturing value in tokenized market infrastructure, reflecting the necessity for ecosystem collaboration.
See More
Financial Services Accelerate Technology Transformation with GenAI and Tokenization
- Accelerated AI Adoption: According to Broadridge's study, 80% of financial services firms are now using generative or predictive AI in operations, a significant increase from 31% last year, indicating growing confidence in AI technology that is expected to enhance productivity and operational efficiency.
- Tokenization Trend: Over 54% of firms are making moderate to large investments in tokenization and digital asset infrastructure, signaling a shift from exploration to scaled buildout, with expectations that major asset classes will be tokenized within the next four to five years, fundamentally reshaping market structures.
- Execution Barriers: Despite high interest in AI and tokenization, 84% of firms emphasize the importance of integrated platforms, and 43% expect to rebuild core systems to support AI-driven operating models, highlighting that execution capability is the primary bottleneck at present.
- Talent Shortage Issues: 37% of firms cite a lack of skilled talent as a barrier to adopting agentic AI, while 38% believe that the lack of technical talent is the biggest barrier to adopting generative AI, reflecting an increasing demand for advanced technical and data capabilities.
See More
Broadridge Appoints Frank Troise as President of Global Capital Markets
- Leadership Change: Broadridge Financial Solutions has appointed Frank Troise as President of Global Capital Markets, a move aimed at strengthening the company's leadership position at the intersection of traditional and digital ecosystems while driving capital markets transformation and innovation.
- Strategic Growth: Since joining Broadridge in 2024 as Head of Trading and Connectivity Solutions, Troise has enhanced the company's platform capabilities, driven strategic growth initiatives, and expanded front-office services across execution management, algorithmic trading, and analytics.
- Market Positioning: Troise emphasized that capital markets are converging around integrated platforms, and with Broadridge's leadership in tokenized real assets and AI-powered capabilities, the firm is uniquely positioned to help clients innovate and unlock growth opportunities across traditional and digital markets.
- Trading Scale: Broadridge connects over 2,200 buy-side and sell-side firms and more than 200 trading venues globally, supporting daily trading volumes exceeding $15 trillion in securities, showcasing its leading position in digital market infrastructure and accelerating institutional adoption of digital markets.
See More
Broadridge Enhances ProxyVote with Pass-Through Voting for Individual Investors
- Voting Capability Enhancement: Broadridge Financial Solutions has significantly upgraded its ProxyVote platform by enhancing Pass-Through Voting capabilities, allowing millions of individual investors to select their voting policies immediately after completing their proxy ballots, thereby increasing investor engagement and choice.
- Pioneering Implementation: Vanguard will be the first asset manager to implement this new capability as part of its Vanguard Investor Choice program, streamlining the voting process for investors holding Vanguard funds on third-party platforms, thus amplifying investor voices in corporate governance.
- Growing Market Demand: Broadridge's Pass-Through Voting solution is currently available to over 600 funds with more than $8 trillion in assets, indicating strong demand from asset managers to offer this critical choice to their shareholders, with rapid growth from just 100 funds two years ago.
- Future Expansion Plans: Following the upcoming proxy season, additional asset managers are expected to integrate this functionality, further expanding the reach of Pass-Through Voting across Broadridge's global network, benefiting millions of investors worldwide.
See More
Broadridge Appoints Allen Weinberg as Chief Growth and Strategy Officer
- Executive Appointment: Broadridge Financial Solutions has appointed Allen Weinberg as Chief Growth and Strategy Officer, aimed at accelerating sustainable growth and enhancing profitability, thereby strengthening the company's competitive position in the rapidly evolving fintech sector.
- Strategic Execution: In his new role, Weinberg will closely collaborate with the leadership team to implement the company's strategic priorities, ensuring alignment with industry dynamics while identifying and evaluating new market and product opportunities.
- Rich Experience: Previously a Senior Partner at McKinsey & Company, Weinberg focused on digital, AI, and analytics practices, bringing extensive technology transformation experience that will provide strategic insights and a disciplined approach to Broadridge's long-term growth strategy.
- Functional Adjustment: This appointment allows Germán Soto Sanchez to concentrate on leading product and enterprise platforms, advancing the company's tokenization initiatives, and further enhancing Broadridge's product and enterprise platform capabilities.
See More
Broadridge Enhances ProxyVote with Pass-Through Voting
- Voting Capability Enhancement: Broadridge Financial Solutions has launched an enhanced Pass-Through Voting feature on its ProxyVote platform, allowing millions of individual investors to select their voting policies immediately after completing their proxy ballots, thereby increasing investor engagement and choice.
- Pioneering Implementation: Vanguard will be the first asset manager to implement this feature as part of its Vanguard Investor Choice program, simplifying the voting process for investors holding Vanguard funds on third-party platforms and amplifying their voices in corporate governance.
- Growing Market Demand: Broadridge's Pass-Through Voting solution is currently available for over 600 funds, managing more than $8 trillion in assets, a significant increase from 100 funds two years ago, indicating strong demand from asset managers for this critical choice.
- Global Network Expansion: More asset managers are expected to integrate this feature following the upcoming proxy season, with Broadridge's global network reaching over 1,100 banks and broker-dealers, further extending the impact of Pass-Through Voting and empowering individual investors in corporate governance.
See More
Financial Services Industry Accelerates Technology Transformation
- Accelerated AI Adoption: 80% of financial services firms report using generative or predictive AI in operations, a significant increase from 31% last year, indicating a rapid shift from pilot programs to enterprise deployment, which is expected to enhance productivity and operational efficiency.
- Tokenization Momentum: Over 54% of firms have made moderate to large investments in tokenization and digital asset infrastructure, signaling a transition from exploration to scaled buildout, with expectations that major asset classes will be tokenized within the next four to five years.
- Execution Challenges: 84% of firms emphasize the importance of integrated platforms, and 43% expect to rebuild core systems to support AI-driven operating models, highlighting challenges in execution capabilities, particularly due to a shortage of skilled talent.
- Structural Market Changes: As AI becomes embedded, the financial market infrastructure is undergoing structural evolution, with 70% of firms believing that external partnerships will be critical for capturing value in tokenized market infrastructure, reflecting the necessity for ecosystem collaboration.
See More
Financial Services Accelerate Technology Transformation with GenAI and Tokenization
- Accelerated AI Adoption: According to Broadridge's study, 80% of financial services firms are now using generative or predictive AI in operations, a significant increase from 31% last year, indicating growing confidence in AI technology that is expected to enhance productivity and operational efficiency.
- Tokenization Trend: Over 54% of firms are making moderate to large investments in tokenization and digital asset infrastructure, signaling a shift from exploration to scaled buildout, with expectations that major asset classes will be tokenized within the next four to five years, fundamentally reshaping market structures.
- Execution Barriers: Despite high interest in AI and tokenization, 84% of firms emphasize the importance of integrated platforms, and 43% expect to rebuild core systems to support AI-driven operating models, highlighting that execution capability is the primary bottleneck at present.
- Talent Shortage Issues: 37% of firms cite a lack of skilled talent as a barrier to adopting agentic AI, while 38% believe that the lack of technical talent is the biggest barrier to adopting generative AI, reflecting an increasing demand for advanced technical and data capabilities.
See More
Broadridge Appoints Frank Troise as President of Global Capital Markets
- Leadership Change: Broadridge Financial Solutions has appointed Frank Troise as President of Global Capital Markets, a move aimed at strengthening the company's leadership position at the intersection of traditional and digital ecosystems while driving capital markets transformation and innovation.
- Strategic Growth: Since joining Broadridge in 2024 as Head of Trading and Connectivity Solutions, Troise has enhanced the company's platform capabilities, driven strategic growth initiatives, and expanded front-office services across execution management, algorithmic trading, and analytics.
- Market Positioning: Troise emphasized that capital markets are converging around integrated platforms, and with Broadridge's leadership in tokenized real assets and AI-powered capabilities, the firm is uniquely positioned to help clients innovate and unlock growth opportunities across traditional and digital markets.
- Trading Scale: Broadridge connects over 2,200 buy-side and sell-side firms and more than 200 trading venues globally, supporting daily trading volumes exceeding $15 trillion in securities, showcasing its leading position in digital market infrastructure and accelerating institutional adoption of digital markets.
See More
