Does Grupo Financiero Galicia S.A. (GGAL) offer a good opportunity for investors?

Grupo Financiero Galicia S.A. (NASDAQ: GGAL) stock jumped 6.67% on Friday to $13.75 against a previous-day closing price of $12.89. With 1.53 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.62 million shares. During the session, the Banks – Regional company that operates in wider Financial sector, reached to the highest price of $13.92 whereas the lowest price it dropped to was $12.57. The 52-week range on GGAL shows that it touched its highest point at $14.25 and its lowest point at $5.75 during that stretch. It currently has a 1-year price target of $9.92. With its current market cap of 3.01 billion, GGAL has annualized dividend of $0.09 while the current yield stands at 0.65%. Beta for the stock currently stands at 1.58.

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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 GGAL was up-trending over the past week, with a rise of 7.00%, but this was up by 72.74% over a month. Three-month performance surged to 84.07% while six-month performance rose 131.87%. The stock gained 58.09% in the past year, while it has gained 41.32% so far this year. A look at the trailing 12-month EPS for GGAL yields 1.34 with Next year EPS estimates of 3.78. For the next quarter, that number is 0.84. This implies an EPS growth rate of -16.90% for this year and 246.80% for next year.

Float and Shares Shorts:

At present, 147.47 million GGAL shares are outstanding with a float of 90.03 million shares on hand for trading. On Oct 13, 2022, short shares totaled 1.48 million, which was 1.00% higher than short shares on Sep 14, 2022. In addition to Mr. Fabian Enrique Kon as the firm’s GM & CEO, Mr. Diego H. Rivas serves as its Chief Financial & Compliance Officer.

Institutional Ownership:

Through their ownership of 9.77% of GGAL’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 8.33% of GGAL, in contrast to 1.46% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in GGAL with 3.12% of the stake, INCA Investments LLC holds 3,721,051 shares worth 3,721,051. A second-largest stockholder of GGAL, Discovery Capital Management LLC, holds 1,690,376 shares, controlling over 1.42% of the firm’s shares. Arrowstreet Capital LP is the third largest shareholder in GGAL, holding 1,054,218 shares or 0.88% stake. With a 0.63% stake in GGAL, the BlackRock Strategic Fds. – Emergi is the largest stakeholder. A total of 756,130 shares are owned by the mutual fund manager. The Global X MSCI Argentina ETF, which owns about 0.15% of GGAL stock, is the second-largest Mutual Fund holder. It holds 175,568 shares valued at 1.71 million. Andra AP Fonden holds 0.11% of the stake in GGAL, owning 129,800 shares worth 1.26 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GGAL since 7 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With GGAL analysts setting a high price target of $44.30 and a low target of $7.00, the average target price over the next 12 months is $21.30. Based on these targets, GGAL could surge 222.18% to reach the target high and fall by -49.09% to reach the target low. Reaching the average price target will result in a growth of 54.91% 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. GGAL will report FY 2022 earnings on 02/13/2024. Analysts have provided yearly estimates in a range of $4.07 being high and $0.83 being low. For GGAL, this leads to a yearly average estimate of $2.17. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Grupo Financiero Galicia S.A. surprised analysts by -$0.18 when it reported $0.20 EPS against a consensus estimate of $0.37. The surprise factor in the prior quarter was -$0.13. Based on analyst estimates, the high estimate for the next quarter is $0.72 and the low estimate is $0.21. The average estimate for the next quarter is thus $0.50.

Dividends & Yield:

In terms of dividends, GGAL has a current ratio of $0.31, which is $0.31 over the trailing 12-months, while a dividend of $0.23 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and GGAL currently yields $2.22. In the past year, GGAL’s dividend yield has been $2.22, but when looking at the stock over the past five years, its yield has been $1.69. Accordingly, GGAL has a current buyback yield of $0.0. This was $0.0 for the TTM.

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