Ready to Jump After Recent Trade: Companhia Brasileira de Distribuicao (CBD)

Companhia Brasileira de Distribuicao (NYSE: CBD) stock jumped 6.20% on Tuesday to $3.94 against a previous-day closing price of $3.71. With 0.74 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.0 million shares. During the session, the Department Stores company that operates in wider Consumer Cyclical sector, reached to the highest price of $3.9400 whereas the lowest price it dropped to was $3.8000. The 52-week range on CBD shows that it touched its highest point at $5.50 and its lowest point at $2.73 during that stretch. It currently has a 1-year price target of $5.50. With its current market cap of 1.05 billion, CBD has annualized dividend of $0.07 while the current yield stands at 1.80%. Beta for the stock currently stands at 1.19.

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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 CBD was up-trending over the past week, with a rise of 7.07%, but this was up by 15.54% over a month. Three-month performance dropped to -3.67% while six-month performance rose 36.81%. The stock gained 10.88% in the past year, while it has gained 27.10% so far this year. A look at the trailing 12-month EPS for CBD yields 0.23 with Next year EPS estimates of 0.33. For the next quarter, that number is 0.14. This implies an EPS growth rate of -26.30% for this year and 1750.00% for next year.

Float and Shares Shorts:

At present, 269.00 million CBD shares are outstanding with a float of 159.44 million shares on hand for trading. On Oct 13, 2022, short shares totaled 1.51 million, which was 0.56% higher than short shares on Sep 14, 2022. In addition to Mr. Marcelo Ribeiro Pimentel as the firm’s Chief Exec. Officer, Mr. Guillaume Marie Didier Gras serves as its CFO, Investors Relations Director & Member of Exec. Board.

Institutional Ownership:

Through their ownership of 5.95% of CBD’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 4.23% of CBD, in contrast to 1.11% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in CBD with 0.90% of the stake, Morgan Stanley Uruguay Ltda. holds 2,434,180 shares worth 2,434,180. A second-largest stockholder of CBD, Banco BTG Pactual SA, holds 2,290,890 shares, controlling over 0.85% of the firm’s shares. SPX Equities Gestão de Recursos L is the third largest shareholder in CBD, holding 1,072,465 shares or 0.40% stake. With a 0.18% stake in CBD, the Vanguard Total International Stoc is the largest stakeholder. A total of 476,044 shares are owned by the mutual fund manager. The Vanguard Emerging Markets Stock I, which owns about 0.13% of CBD stock, is the second-largest Mutual Fund holder. It holds 354,344 shares valued at 1.1 million. Avantis Emerging Markets Equity E holds 0.13% of the stake in CBD, owning 341,549 shares worth 1.06 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CBD since 9 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 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 CBD analysts setting a high price target of $7.47 and a low target of $4.00, the average target price over the next 12 months is $5.14. Based on these targets, CBD could surge 89.59% to reach the target high and rise by 1.52% to reach the target low. Reaching the average price target will result in a growth of 30.46% 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. CBD will report FY 2022 earnings on 02/21/2024. Analysts have provided yearly estimates in a range of -$0.03 being high and -$0.26 being low. For CBD, this leads to a yearly average estimate of -$0.15. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Companhia Brasileira de Distribuicao surprised analysts by -$0.11 when it reported -$0.22 EPS against a consensus estimate of -$0.11. The surprise factor in the prior quarter was -$0.07. Based on analyst estimates, the high estimate for the next quarter is $0.05 and the low estimate is $0.05. The average estimate for the next quarter is thus $0.05.

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