Top investors say Telefonica Brasil S.A. (VIV) ticks everything they need

Telefonica Brasil S.A. (NYSE: VIV) stock jumped 3.78% on Friday to $8.24 against a previous-day closing price of $7.94. With 1.4 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.12 million shares. During the session, the Telecom Services company that operates in wider Communication Services sector, reached to the highest price of $8.30 whereas the lowest price it dropped to was $7.95. The 52-week range on VIV shows that it touched its highest point at $11.69 and its lowest point at $7.43 during that stretch. It currently has a 1-year price target of $10.78. With its current market cap of 13.90 billion, VIV has annualized dividend of $0.73 while the current yield stands at 8.85%. Beta for the stock currently stands at 0.50.

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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 VIV was up-trending over the past week, with a rise of 4.04%, but this was down by -5.29% over a month. Three-month performance dropped to -7.87% while six-month performance fell -24.15%. The stock gained 4.23% in the past year, while it has lost -3.51% so far this year. A look at the trailing 12-month EPS for VIV yields 0.62 with Next year EPS estimates of 0.63. For the next quarter, that number is 0.14. This implies an EPS growth rate of 31.50% for this year and 36.01% for next year. EPS is expected to grow by 1.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 9.00%.

Float and Shares Shorts:

At present, 1.67 billion VIV shares are outstanding with a float of 436.62 million shares on hand for trading. On Jul 14, 2022, short shares totaled 14.39 million, which was 0.86% higher than short shares on Jun 14, 2022. In addition to Mr. Christian Mauad Gebara as the firm’s CEO & Director, Mr. David Melcon Sanchez-Friera serves as its Chief Financial & Investor Relations Officer.

Institutional Ownership:

Through their ownership of 7.72% of VIV’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 4.86% of VIV, in contrast to 2.56% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in VIV with 3.88% of the stake, Artisan Partners LP holds 65,125,211 shares worth 65,125,211. A second-largest stockholder of VIV, Wellington Management Co. LLP, holds 16,327,030 shares, controlling over 0.97% of the firm’s shares. Barings is the third largest shareholder in VIV, holding 4,193,039 shares or 0.25% stake. With a 0.58% stake in VIV, the John Hancock III – International is the largest stakeholder. A total of 9,654,985 shares are owned by the mutual fund manager. The St. James’s Place Unit Trust – Gl, which owns about 0.37% of VIV stock, is the second-largest Mutual Fund holder. It holds 6,264,982 shares valued at 50.87 million. St. James’s Place Unit Trust – Gl holds 0.25% of the stake in VIV, owning 4,193,039 shares worth 34.05 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VIV since 15 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 1 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 VIV analysts setting a high price target of $12.24 and a low target of $8.39, the average target price over the next 12 months is $10.68. Based on these targets, VIV could surge 48.54% to reach the target high and rise by 1.82% to reach the target low. Reaching the average price target will result in a growth of 29.61% 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. VIV will report FY 2022 earnings on 02/22/2023. Analysts have provided yearly estimates in a range of $0.48 being high and $0.39 being low. For VIV, this leads to a yearly average estimate of $0.43. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Telefonica Brasil S.A. surprised analysts by -$0.05 when it reported $0.09 EPS against a consensus estimate of $0.14. The surprise factor in the prior quarter was -$0.04. Based on analyst estimates, the high estimate for the next quarter is $0.14 and the low estimate is $0.08. The average estimate for the next quarter is thus $0.11.

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