Banco Bradesco SA (NYSE:BBD) Sees Large Decrease in Short Interest

Key Points

• Short interest in Banco Bradesco SA decreased by 21.0% in August, dropping to 21,270,000 shares compared to 26,920,000 shares in July.
• Banco Bradesco announced a new monthly dividend of $0.0035, with a dividend yield of 1.3%, marking an increase from the previous dividend of $0.00.
• Citigroup upgraded Banco Bradesco from a "hold" to a "buy" rating, reflecting a more positive outlook from several analysts who have rated the stock.

Banco Bradesco SA (NYSE:BBD - Get Free Report) was the target of a large decline in short interest during the month of August. As of August 15th, there was short interest totaling 21,270,000 shares, a decline of 21.0% from the July 31st total of 26,920,000 shares. Based on an average trading volume of 36,720,000 shares, the days-to-cover ratio is presently 0.6 days. Based on an average trading volume of 36,720,000 shares, the days-to-cover ratio is presently 0.6 days.

Analysts Set New Price Targets

Separately, Citigroup raised Banco Bradesco from a "hold" rating to a "buy" rating in a research note on Wednesday, May 28th. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $2.40.

Banco Bradesco Trading Down 1.3%

Shares of NYSE BBD traded down $0.04 during trading hours on Friday, hitting $3.12. 58,581,199 shares of the company traded hands, compared to its average volume of 30,084,112. The stock has a market capitalization of $33.20 billion, a price-to-earnings ratio of 8.91, a price-to-earnings-growth ratio of 0.43 and a beta of 0.76. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 0.63. The company's 50 day moving average price is $2.95 and its 200 day moving average price is $2.67. Banco Bradesco has a 12 month low of $1.84 and a 12 month high of $3.24.

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

Banco Bradesco Increases Dividend

The business also recently announced a monthly dividend, which will be paid on Wednesday, October 8th. Stockholders of record on Wednesday, September 3rd will be given a dividend of $0.0035 per share. The ex-dividend date of this dividend is Wednesday, September 3rd. This represents a c) annualized dividend and a dividend yield of 1.4%. This is an increase from Banco Bradesco's previous monthly dividend of $0.00. Banco Bradesco's dividend payout ratio is presently 5.71%.

Hedge Funds Weigh In On Banco Bradesco

A number of large investors have recently bought and sold shares of BBD. Orbis Allan Gray Ltd purchased a new position in Banco Bradesco during the 2nd quarter valued at $250,398,000. ARGA Investment Management LP boosted its holdings in Banco Bradesco by 53.0% during the 1st quarter. ARGA Investment Management LP now owns 126,724,278 shares of the bank's stock valued at $282,595,000 after acquiring an additional 43,884,334 shares during the period. Goldman Sachs Group Inc. boosted its holdings in Banco Bradesco by 116.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 33,132,112 shares of the bank's stock valued at $73,885,000 after acquiring an additional 17,853,712 shares during the period. Fisher Asset Management LLC boosted its holdings in Banco Bradesco by 18.4% during the 2nd quarter. Fisher Asset Management LLC now owns 88,098,675 shares of the bank's stock valued at $272,225,000 after acquiring an additional 13,682,255 shares during the period. Finally, Acadian Asset Management LLC purchased a new position in Banco Bradesco during the 2nd quarter valued at $41,113,000.

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.