Banco Bradesco (NYSE:BBD) Shares Gap Down - Should You Sell?

Key Points

• Banco Bradesco shares opened at $2.90 after closing at $3.02, indicating a noticeable gap down in stock price.
• Recent analyst upgrades include Bank of America and Citigroup raising their ratings to "buy", although the consensus rating remains a "hold".
• The company announced a new dividend of $0.0023 per share, a positive change from the previous dividend of $0.00, reflecting a significant 99.0% dividend yield.

Shares of Banco Bradesco SA (NYSE:BBD - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $3.02, but opened at $2.90. Banco Bradesco shares last traded at $2.89, with a volume of 2,894,658 shares changing hands.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on BBD. Bank of America raised Banco Bradesco from a "neutral" rating to a "buy" rating in a report on Thursday, May 8th. Citigroup raised Banco Bradesco from a "hold" rating to a "buy" rating in a report on Wednesday, May 28th. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Banco Bradesco currently has an average rating of "Hold" and an average price target of $2.40.

Banco Bradesco Trading Up 3.3%

The firm has a fifty day simple moving average of $2.94 and a two-hundred day simple moving average of $2.57. The firm has a market capitalization of $31.77 billion, a P/E ratio of 8.53, a price-to-earnings-growth ratio of 0.41 and a beta of 0.68. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.11 and a quick ratio of 1.11.

Banco Bradesco (NYSE:BBD - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The bank reported $0.10 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.10. Banco Bradesco had a return on equity of 12.96% and a net margin of 9.76%.The company had revenue of $5.87 billion for the quarter, compared to analyst estimates of $32.70 billion. On average, equities research analysts anticipate that Banco Bradesco SA will post 0.37 earnings per share for the current fiscal year.

Banco Bradesco Increases Dividend

The business also recently disclosed a dividend, which will be paid on Thursday, September 11th. Investors of record on Wednesday, August 6th will be paid a dividend of $0.0023 per share. This represents a dividend yield of 99.0%. The ex-dividend date is Tuesday, August 5th. This is a positive change from Banco Bradesco's previous dividend of $0.00. Banco Bradesco's dividend payout ratio is presently 8.57%.

Institutional Trading of Banco Bradesco

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Aprio Wealth Management LLC purchased a new stake in shares of Banco Bradesco in the first quarter worth $25,000. GAMMA Investing LLC raised its position in shares of Banco Bradesco by 92.7% in the second quarter. GAMMA Investing LLC now owns 8,034 shares of the bank's stock worth $25,000 after buying an additional 3,864 shares in the last quarter. Simplicity Wealth LLC purchased a new stake in shares of Banco Bradesco in the first quarter worth $26,000. Dorsey & Whitney Trust CO LLC purchased a new stake in shares of Banco Bradesco in the first quarter worth $26,000. Finally, EverSource Wealth Advisors LLC raised its position in shares of Banco Bradesco by 100.5% in the second quarter. EverSource Wealth Advisors LLC now owns 8,685 shares of the bank's stock worth $27,000 after buying an additional 4,353 shares in the last quarter.

About Banco Bradesco

Banco Bradesco SA, together with its subsidiaries, provides various banking products and services to individuals, corporates, and businesses in Brazil and internationally. The company operates through two segments, Banking and Insurance. It provides current, savings, click, and salary accounts; real estate credit, vehicle financing, payroll loans, mortgage loans, microcredit, leasing, and personal and installment credit; overdraft and agribusiness loans; debit and business cards; financial and security services; consortium products; car, personal accident, dental, travel, and life insurance; investment products; pension products; foreign currency exchange services; capitalization bonds; and internet banking services.