Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE: SBS) stock jumped 3.47% on Tuesday to $10.45 against a previous-day closing price of $10.10. With 1.72 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.98 million shares. During the session, the Utilities – Regulated Water company that operates in wider Utilities sector, reached to the highest price of $10.48 whereas the lowest price it dropped to was $10.15. The 52-week range on SBS shows that it touched its highest point at $12.04 and its lowest point at $6.23 during that stretch. It currently has a 1-year price target of $12.30. With its current market cap of 7.41 billion, SBS has annualized dividend of $0.18 while the current yield stands at 1.71%. Beta for the stock currently stands at 1.02.
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 SBS was down-trending over the past week, with a drop of -3.78%, but this was down by -2.25% over a month. Three-month performance dropped to -7.85% while six-month performance rose 28.85%. The stock gained 61.19% in the past year, while it has lost -1.97% so far this year. EPS is expected to grow by 10.71% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -4.80%.
Float and Shares Shorts:
At present, 683.51 million SBS shares are outstanding with a float of 338.69 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.89 million, which was 0.72% higher than short shares on Sep 14, 2022. In addition to Mr. Benedito Pinto Ferreira Braga Jr. as the firm’s CEO, Member of Board of Exec. Officers & Director, Mr. Osvaldo Garcia serves as its CFO, IR Officer, Corp. Management Office & Member of Board of Exec. Officers.
Through their ownership of 14.65% of SBS’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 3.60% of SBS, in contrast to 10.54% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in SBS with 3.13% of the stake, Impax Asset Management Ltd. holds 21,418,579 shares worth 21,418,579. A second-largest stockholder of SBS, Mackenzie Financial Corp., holds 5,594,512 shares, controlling over 0.82% of the firm’s shares. Letko, Brosseau & Associates Inc. is the third largest shareholder in SBS, holding 5,315,240 shares or 0.78% stake. With a 2.65% stake in SBS, the Pictet – Water is the largest stakeholder. A total of 18,118,273 shares are owned by the mutual fund manager. The BNP Paribas Funds – Climate Impac, which owns about 0.76% of SBS stock, is the second-largest Mutual Fund holder. It holds 5,179,893 shares valued at 55.22 million. Invesco Water Resources ETF holds 0.72% of the stake in SBS, owning 4,934,533 shares worth 52.6 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SBS since 12 analysts follow the stock currently. There are 10 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 SBS analysts setting a high price target of $17.16 and a low target of $9.81, the average target price over the next 12 months is $13.15. Based on these targets, SBS could surge 64.21% to reach the target high and fall by -6.12% to reach the target low. Reaching the average price target will result in a growth of 25.84% 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. SBS will report FY 2022 earnings on 03/29/2024. Analysts have provided yearly estimates in a range of $0.99 being high and $0.50 being low. For SBS, this leads to a yearly average estimate of $0.81. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Companhia de Saneamento Basico do Estado de Sao Paulo surprised analysts by $0.16 when it reported $0.29 EPS against a consensus estimate of $0.13. The surprise factor in the prior quarter was -$0.10. Based on analyst estimates, the high estimate for the next quarter is $0.25 and the low estimate is $0.14. The average estimate for the next quarter is thus $0.20.