It makes sense and dollars to buy Banco Santander (Brasil) S.A. (BSBR) stock

Banco Santander (Brasil) S.A. (NYSE: BSBR) stock fell -4.09% on Monday to $5.39 against a previous-day closing price of $5.62. With 2.49 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.64 million shares. During the session, the Banks – Regional company that operates in wider Financial sector, reached to the highest price of $5.52 whereas the lowest price it dropped to was $5.36. The 52-week range on BSBR shows that it touched its highest point at $7.75 and its lowest point at $4.76 during that stretch. It currently has a 1-year price target of $6.16. With its current market cap of 20.15 billion, BSBR has annualized dividend of $0.57 while the current yield stands at 10.67%. Beta for the stock currently stands at 0.80.

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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 BSBR was down-trending over the past week, with a drop of -8.02%, but this was up by 2.28% over a month. Three-month performance dropped to -9.22% while six-month performance rose 10.18%. A look at the trailing 12-month EPS for BSBR yields 0.39 with Next year EPS estimates of 0.75. For the next quarter, that number is 0.14. This implies an EPS growth rate of 15.70% for this year and 2.70% for next year. EPS is expected to grow by 2.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 16.40%.

Float and Shares Shorts:

At present, 7.44 billion BSBR shares are outstanding with a float of 3.27 billion shares on hand for trading. On Oct 13, 2022, short shares totaled 2.66 million, which was 0.04% higher than short shares on Sep 14, 2022. In addition to Mr. Sergio Agapito Lires Rial as the firm’s Pres, Chairman of Directors & Member of the Board of Exec. Officers, Mr. Mario Roberto Opice Leao serves as its CEO, Director & Member of the Board of Exec. Officers.

Institutional Ownership:

Through their ownership of 0.61% of BSBR’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 0.33% of BSBR, in contrast to 0.28% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in BSBR with 0.16% of the stake, Invesco Capital Management LLC holds 5,823,584 shares worth 5,823,584. A second-largest stockholder of BSBR, Macquarie Investment Management B, holds 3,974,552 shares, controlling over 0.11% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in BSBR, holding 3,101,965 shares or 0.08% stake. With a 0.19% stake in BSBR, the Invesco International Dividend Ac is the largest stakeholder. A total of 7,113,225 shares are owned by the mutual fund manager. The Delaware Emerging Markets Fund, which owns about 0.08% of BSBR stock, is the second-largest Mutual Fund holder. It holds 3,051,128 shares valued at 16.45 million. LUX IM – ESG Global Emerging Equi holds 0.01% of the stake in BSBR, owning 398,099 shares worth 2.15 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BSBR since 14 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 4 suggest SELL ratings. Of the remaining analysts, 7 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 BSBR analysts setting a high price target of $8.98 and a low target of $4.88, the average target price over the next 12 months is $6.50. Based on these targets, BSBR could surge 66.6% to reach the target high and fall by -9.46% to reach the target low. Reaching the average price target will result in a growth of 20.59% 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. BSBR will report FY 2022 earnings on 01/31/2024. Analysts have provided yearly estimates in a range of $0.73 being high and $0.68 being low. For BSBR, this leads to a yearly average estimate of $0.71. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Banco Santander (Brasil) S.A. surprised analysts by -$0.03 when it reported $0.16 EPS against a consensus estimate of $0.19. The surprise factor in the prior quarter was $0.00. Based on analyst estimates, the high estimate for the next quarter is $0.16 and the low estimate is $0.11. The average estimate for the next quarter is thus $0.14.

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