Brighthouse Financial Soars 1.17% on Earnings, Takeover Rumors

Brighthouse Financial (BHF) shares surged 1.17% today, marking the second consecutive day of gains, with a total increase of 2.66% over the past two days. The stock price reached its highest level since February 2025, with an intraday gain of 6.54%.

The strategy of buying BHF shares after a recent high and holding for one week underperformed the market with a 7.79% annualized return, significantly lower than the 6.13% excess return of a buy-and-hold strategy. It also underperformed the trend, as indicated by a profit factor of 0.66 and a winning trades percentage of only 33.33%. The strategy's conservative approach, with an average holding time of approximately 4 weeks and 1 day per trade, did not yield favorable results, suggesting that BHF's price was more likely to decline than increase in the short term following a recent high.

Brighthouse Financial's stock price has been influenced by several recent factors. The company reported first-quarter 2025 revenue of $2.16 billion, a 5.2% increase from the same period last year. However, the adjusted net income per share of $4.17 missed the Zacks Consensus Estimate by 11.6%, which could potentially affect investor sentiment and stock performance.

Additionally, rumors of a $9 billion takeover bid for Brighthouse Financial have circulated, although company executives have remained silent. This uncertainty has created speculation in the market, which could impact the stock price.

Analysts have also weighed in on the company's prospects. Suneet Kamath of Jefferies maintained a Hold rating on Brighthouse Financial, with a price target of $57.00. Barclays increased their price target on Brighthouse Financial shares from $75.00 to $76.00 and gave the stock an "overweight" rating. Keefe, Bruyette & Woods raised their price target on Brighthouse Financial from $60.00 to $66.00. These ratings and revised price targets reflect varying levels of optimism and could influence investor decisions.