Banco Bradesco (NYSE:BBD) Shares Gap Down - Time to 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.

Banco Bradesco SA (NYSE:BBD - Get Free Report)'s stock price 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 traded.

Wall Street Analysts Forecast Growth

BBD has been the subject of several research analyst reports. Citigroup raised shares of Banco Bradesco from a "hold" rating to a "buy" rating in a research report on Wednesday, May 28th. Bank of America raised shares of Banco Bradesco from a "neutral" rating to a "buy" rating in a research report on Thursday, May 8th. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Banco Bradesco currently has a consensus rating of "Hold" and a consensus price target of $2.40.

Banco Bradesco Stock Performance

The company has a market capitalization of $31.77 billion, a PE ratio of 8.53, a PEG ratio of 0.40 and a beta of 0.68. The business's 50-day moving average is $2.94 and its 200-day moving average is $2.56. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.11 and a current ratio of 1.11.

Banco Bradesco (NYSE:BBD - Get Free Report) last issued its quarterly earnings results 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 net margin of 9.76% and a return on equity of 12.96%. The company had revenue of $5.87 billion during the quarter, compared to analysts' expectations of $32.70 billion. On average, research analysts anticipate that Banco Bradesco SA will post 0.37 earnings per share for the current year.

Banco Bradesco Increases Dividend

The company also recently announced a dividend, which will be paid on Thursday, September 11th. Shareholders of record on Wednesday, August 6th will be issued a $0.0023 dividend. This represents a yield of 99.0%. This is a boost from Banco Bradesco's previous dividend of $0.00. The ex-dividend date of this dividend is Tuesday, August 5th. Banco Bradesco's dividend payout ratio is presently 8.57%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of BBD. JPMorgan Chase & Co. raised its holdings in Banco Bradesco by 190.2% in the fourth quarter. JPMorgan Chase & Co. now owns 797,387 shares of the bank's stock worth $1,523,000 after buying an additional 522,597 shares during the last quarter. Wells Fargo & Company MN raised its holdings in Banco Bradesco by 10,645.5% in the fourth quarter. Wells Fargo & Company MN now owns 332,143 shares of the bank's stock worth $634,000 after buying an additional 329,052 shares during the last quarter. Invesco Ltd. raised its holdings in Banco Bradesco by 16.4% in the fourth quarter. Invesco Ltd. now owns 311,020 shares of the bank's stock worth $594,000 after buying an additional 43,848 shares during the last quarter. Raymond James Financial Inc. purchased a new position in Banco Bradesco in the fourth quarter worth about $3,222,000. Finally, Barclays PLC raised its holdings in Banco Bradesco by 390.5% in the fourth quarter. Barclays PLC now owns 2,283,064 shares of the bank's stock worth $4,361,000 after buying an additional 1,817,619 shares during 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.