What's Going On With Brighthouse Financial Shares Tuesday?

Brighthouse Financial, Inc. BHF shares are moving higher on Tuesday following a report suggesting that the company is exploring a potential sale.

The Details: According to the Financial Times, the life insurance company is currently working with Goldman Sachs and Wells Fargo to evaluate offers to buy the company or raise equity.

The company’s $120 billion investment portfolio may position it as one of the few life insurers large enough to attract alternative asset managers like Apollo, KKR and BlackRock. The potential sale reflects a broader trend of major life insurers, such as American Equity Life and Talcott Resolution, merging with alternative asset managers.

The life insurance company’s emphasis on variable annuities, a costly product to hedge with high capital requirements, has deterred some potential bidders, according to familiar sources.

Brighthouse stated it does not, “comment on rumors and speculation.” In addition, Goldman and Wells Fargo declined to comment.

Shares of Brighthouse have dropped by roughly 25% since the company went public in 2017. The company’s stock is up by about 15% over the past year.

Brighthouse is expected to release 2024 fiscal-year fourth-quarter earnings on Feb. 11 after the market closes. Analysts estimate earnings per share of $4.30 and revenue of $2.23 billion, per data from Benzinga Pro.

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BHF Price Action: At the time of writing, Brighthouse stock is trading 16.7% higher at $59.60, according to data from Benzinga Pro.

Image: This illustration was generated using artificial intelligence via Midjourney.