Keefe Bruyette slashes price target on Focus Financial Partners Inc. [FOCS] – find out why.

Focus Financial Partners Inc. [NASDAQ: FOCS] traded at a low on 04/11/23, posting a -0.36 loss after which it closed the day’ session at $51.87. The company report on April 10, 2023 that Focus Financial Partners Announces Expiration of “Go-Shop” Period in Connection with its Acquisition by Clayton, Dubilier & Rice.

Focus Financial Partners Inc. (NASDAQ:FOCS) (“Focus” or the “Company”), a leading partnership of independent, fiduciary wealth management firms, announced today the expiration of the 40-day “go-shop” period under the terms of the previously announced definitive merger agreement, pursuant to which affiliates of Clayton, Dubilier & Rice, LLC (“CD&R”) will acquire Focus for $53.00 per share in an all cash transaction. Funds managed by Stone Point Capital LLC (“Stone Point”) have agreed to retain a portion of their investment in Focus and provide new equity financing as part of the proposed transaction. Pursuant to the terms of the merger agreement, the Special Committee of the Board of Directors of Focus and its advisors had the right to actively initiate, solicit and consider alternative acquisition proposals from third parties during the go-shop period. The “go-shop” period expired at 11:59 p.m. Eastern Time on April 8, 2023. Focus did not receive any alternative acquisition proposals from any third party during the “go-shop” period.

Closing of the proposed transaction is subject to stockholder approval, regulatory approvals and other customary conditions. The transaction is expected to close in the third quarter of 2023. Focus will cease to be a publicly traded company upon consummation of the proposed transaction.

The results of the trading session contributed to over 7500168 shares changing hands. Over the past one week, the price volatility of Focus Financial Partners Inc. stands at 0.37% while the volatility over the past one month is 0.61%.

The market cap for FOCS stock reached $4.03 billion, with 65.89 million shares outstanding and 58.05 million shares in the current float. Compared to the average trading volume of 1.33M shares, FOCS reached a trading volume of 7500168 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Focus Financial Partners Inc. [FOCS]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for FOCS shares is $52.40 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on FOCS stock is a recommendation set at 3.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Keefe Bruyette have made an estimate for Focus Financial Partners Inc. shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on March 02, 2023. While these analysts kept the previous recommendation, Truist raised their target price from $50 to $53. The new note on the price target was released on February 21, 2023, representing the official price target for Focus Financial Partners Inc. stock. Previously, the target price had yet another raise to $53, while RBC Capital Mkts analysts kept a Sector Perform rating on FOCS stock.

The Average True Range (ATR) for Focus Financial Partners Inc. is set at 0.34, with the Price to Sales ratio for FOCS stock in the period of the last 12 months amounting to 1.88. The Price to Book ratio for the last quarter was 3.24, with the Price to Cash per share for the same quarter was set at 1.80. Price to Free Cash Flow for FOCS in the course of the last twelve months was 16.49.

How has FOCS stock performed recently?

Focus Financial Partners Inc. [FOCS] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.06. With this latest performance, FOCS shares gained by 1.05% in over the last four-week period, additionally plugging by 56.38% over the last 6 months – not to mention a rise of 21.62% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for FOCS stock in for the last two-week period is set at 64.09, with the RSI for the last a single of trading hit 59.13, and the three-weeks RSI is set at 66.77 for Focus Financial Partners Inc. [FOCS]. The present Moving Average for the last 50 days of trading for this stock 50.76, while it was recorded at 51.91 for the last single week of trading, and 40.81 for the last 200 days.

Focus Financial Partners Inc. [FOCS]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Focus Financial Partners Inc. [FOCS] shares currently have an operating margin of +10.71 and a Gross Margin at +62.33. Focus Financial Partners Inc.’s Net Margin is presently recorded at +4.28.

Return on Total Capital for FOCS is now 5.82, given the latest momentum, and Return on Invested Capital for the company is 2.51. Return on Equity for this stock inclined to 9.54, with Return on Assets sitting at 1.92. When it comes to the capital structure of this company, Focus Financial Partners Inc. [FOCS] has a Total Debt to Total Equity ratio set at 265.64. Additionally, FOCS Total Debt to Total Capital is recorded at 72.65, with Total Debt to Total Assets ending up at 57.53. Long-Term Debt to Equity for the company is recorded at 262.08, with the Long-Term Debt to Total Capital now at 71.68.

Reflecting on the efficiency of the workforce at the company, Focus Financial Partners Inc. [FOCS] managed to generate an average of $18,357 per employee. Receivables Turnover for the company is 10.30 with a Total Asset Turnover recorded at a value of 0.45.

Earnings analysis for Focus Financial Partners Inc. [FOCS]

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for FOCS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Focus Financial Partners Inc. go to 15.70%.

Insider trade positions for Focus Financial Partners Inc. [FOCS]

There are presently around $3,836 million, in the hands of institutional investors. The top three institutional holders of FOCS stocks are: STONE POINT CAPITAL LLC with ownership of 16,048,975, which is approximately 0% of the company’s market cap and around 0.03% of the total institutional ownership; WASATCH ADVISORS LP, holding 7,321,330 shares of the stock with an approximate value of $381.15 million in FOCS stocks shares; and CAPITAL WORLD INVESTORS, currently with $283.8 million in FOCS stock with ownership of nearly 0.021% of the company’s market capitalization.

Positions in Focus Financial Partners Inc. stocks held by institutional investors increased at the end of Thursday and at the time of the Thursday reporting period, where 81 institutional holders increased their position in Focus Financial Partners Inc. [NASDAQ:FOCS] by around 4,134,447 shares. Additionally, 97 investors decreased positions by around 2,947,953 shares, while 31 investors held positions by with 66,600,443 shares. The mentioned changes placed institutional holdings at 73,682,843 shares, according to the latest SEC report filing. FOCS stock had 13 new institutional investments in for a total of 425,959 shares, while 27 institutional investors sold positions of 858,734 shares during the same period.