Banco Bradesco (NYSE:BBD) Reaches New 1-Year High - Time to Buy?

Key Points

• Banco Bradesco's stock hit a new 52-week high of $4.30 intraday (last $4.275) on notable volume, while analysts turned more positive — Weiss Ratings upgraded to Buy and Itau BBA reaffirmed Outperform, leaving an average analyst rating of Buy.
• The shares look value-oriented with a P/E of 10.91, PEG 0.50 and a $45.2B market cap; the bank reported $0.11 EPS (in line) but missed revenue expectations and posted a 13.78% ROE.
• Bradesco announced a new monthly dividend of $0.0037 (annualized yield ~1.0%, payout ratio 5.13%), and several institutional investors have recently increased their stakes.

Banco Bradesco SA (NYSE:BBD - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Friday . The company traded as high as $4.30 and last traded at $4.2750, with a volume of 3660278 shares changing hands. The stock had previously closed at $4.15.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on BBD. Weiss Ratings raised Banco Bradesco from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday. Itau BBA Securities reaffirmed an "outperform" rating on shares of Banco Bradesco in a research note on Friday, February 27th. Four analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock has an average rating of "Buy".

Banco Bradesco Trading Up 2.7%

The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.14 and a current ratio of 1.14. The firm has a market capitalization of $45.19 billion, a price-to-earnings ratio of 10.91, a P/E/G ratio of 0.50 and a beta of 0.55. The company has a 50 day moving average price of $3.85 and a two-hundred day moving average price of $3.62.

Banco Bradesco (NYSE:BBD - Get Free Report) last announced its earnings results on Thursday, February 5th. The bank reported $0.11 earnings per share for the quarter, hitting the consensus estimate of $0.11. The business had revenue of $5.52 billion during the quarter, compared to the consensus estimate of $6.68 billion. Banco Bradesco had a return on equity of 13.78% and a net margin of 10.19%. On average, research analysts forecast that Banco Bradesco SA will post 0.37 EPS for the current year.

Banco Bradesco Increases Dividend

The company also recently disclosed a monthly dividend, which will be paid on Monday, June 8th. Investors of record on Wednesday, May 6th will be paid a $0.0037 dividend. The ex-dividend date of this dividend is Wednesday, May 6th. This represents a c) annualized dividend and a yield of 1.0%. This is an increase from Banco Bradesco's previous monthly dividend of $0.00. Banco Bradesco's dividend payout ratio is currently 5.13%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. New York State Common Retirement Fund raised its stake in Banco Bradesco by 14.6% in the 3rd quarter. New York State Common Retirement Fund now owns 7,526,379 shares of the bank's stock valued at $25,439,000 after purchasing an additional 957,203 shares during the last quarter. Barometer Capital Management Inc. acquired a new position in Banco Bradesco in the 3rd quarter valued at $1,186,000. Perpetual Ltd raised its stake in Banco Bradesco by 67.5% in the 3rd quarter. Perpetual Ltd now owns 3,900,023 shares of the bank's stock valued at $13,182,000 after purchasing an additional 1,571,561 shares during the last quarter. Grantham Mayo Van Otterloo & Co. LLC acquired a new position in Banco Bradesco in the 3rd quarter valued at $12,728,000. Finally, Aquatic Capital Management LLC raised its stake in Banco Bradesco by 193.5% in the 3rd quarter. Aquatic Capital Management LLC now owns 2,212,761 shares of the bank's stock valued at $7,479,000 after purchasing an additional 1,458,889 shares during the last quarter.

About Banco Bradesco

Banco Bradesco SA is a major Brazilian financial institution headquartered in Osasco, São Paulo. Founded in 1943 by Amador Aguiar, the bank has grown into one of Brazil's largest private-sector banks, offering a full range of financial services to retail, small and medium-sized enterprises, corporate and institutional clients. It operates across the banking value chain, including deposit-taking, lending, payments, trade finance and treasury services, and it participates actively in Brazil's retail and corporate credit markets.

The company's product and service mix extends beyond traditional banking to include insurance, pension plans, asset management, leasing and credit card services, delivered through a combination of branches, automated teller machines and digital channels.

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