Itau Unibanco Holding S.A. (ITUB) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Itau Unibanco Holding S.A. (NYSE: ITUB) stock jumped 2.30% on Friday to $4.44 against a previous-day closing price of $4.34. With 60.96 million shares changed hands, the volume of the stock remained heavier than its average volume of 50.82 million shares. During the session, the Banks – Regional company that operates in wider Financial sector, reached to the highest price of $4.4600 whereas the lowest price it dropped to was $4.3600. The 52-week range on ITUB shows that it touched its highest point at $5.88 and its lowest point at $3.58 during that stretch. It currently has a 1-year price target of $5.81. With its current market cap of 41.23 billion, ITUB has annualized dividend of $0.09 while the current yield stands at 2.00%. Beta for the stock currently stands at 0.86.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ITUB was up-trending over the past week, with a rise of 4.23%, but this was down by -0.59% over a month. Three-month performance dropped to -9.37% while six-month performance rose 1.58%. The stock lost -4.23% in the past year, while it has gained 18.92% so far this year. A look at the trailing 12-month EPS for ITUB yields 0.51 with Next year EPS estimates of 0.63. For the next quarter, that number is 0.14. This implies an EPS growth rate of 41.20% for this year and 5.00% for next year. EPS is expected to grow by 21.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 4.40%.

Float and Shares Shorts:

At present, 9.79 billion ITUB shares are outstanding with a float of 5.28 billion shares on hand for trading. On Apr 28, 2022, short shares totaled 45.41 million, which was 0.46% higher than short shares on Mar 30, 2022. In addition to Mr. Milton Maluhy Filho as the firm’s CEO & Member of Exec. Board, Mr. Alexsandro Broedel Lopes serves as its CFO & Member of Exec. Board.

Institutional Ownership:

Through their ownership of 22.53% of ITUB’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 7.16% of ITUB, in contrast to 13.64% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in ITUB with 1.89% of the stake, Schroder Investment Management Lt holds 91,386,843 shares worth 91,386,843. A second-largest stockholder of ITUB, Goldman Sachs & Co. LLC, holds 86,578,544 shares, controlling over 1.79% of the firm’s shares. Orbis Investment Management Ltd. is the third largest shareholder in ITUB, holding 81,494,336 shares or 1.68% stake. With a 0.46% stake in ITUB, the Schroder ISF – Emerging Markets is the largest stakeholder. A total of 22,218,257 shares are owned by the mutual fund manager. The Hartford Schroders Emerging Marke, which owns about 0.45% of ITUB stock, is the second-largest Mutual Fund holder. It holds 21,802,795 shares valued at 93.32 million. Templeton Emerging Markets Invest holds 0.42% of the stake in ITUB, owning 20,385,276 shares worth 87.25 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ITUB since 4 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ITUB analysts setting a high price target of $7.20 and a low target of $5.00, the average target price over the next 12 months is $5.73. Based on these targets, ITUB could surge 62.16% to reach the target high and rise by 12.61% to reach the target low. Reaching the average price target will result in a growth of 29.05% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ITUB will report FY 2022 earnings on 02/06/2023. Analysts have provided yearly estimates in a range of $0.64 being high and $0.56 being low. For ITUB, this leads to a yearly average estimate of $0.60. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Itau Unibanco Holding S.A. surprised analysts by -$0.01 when it reported $0.13 EPS against a consensus estimate of $0.15. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.16 and the low estimate is $0.14. The average estimate for the next quarter is thus $0.15.

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