Banco Do Brasil (OTCMKTS:BDORY) Hits New 12-Month Low - Time to Sell?

Key Points

• BDORY hit a new 52-week low of $3.5075, trading below both its 50-day and 200-day moving averages and signaling continued technical weakness.
• Second-quarter adjusted net income increased 3.3% to about R$3.91 billion and exceeded expectations, but rising individual-borrower delinquencies, reduced loan-loss coverage and ongoing agricultural-credit concerns outweighed the stronger profit.
• Analyst sentiment remains bearish: Zacks Research and Goldman Sachs downgraded the stock to “strong sell,” while MarketBeat reports an average rating of “Sell.”

Banco Do Brasil SA (OTCMKTS:BDORY - Get Free Report) shares reached a new 52-week low during mid-day trading on Friday . The company traded as low as $3.5075 and last traded at $3.5075, with a volume of 293224 shares traded. The stock had previously closed at $3.61.

More Banco Do Brasil News

Here are the key news stories impacting Banco Do Brasil this week:

• Positive Sentiment: Second-quarter adjusted net income rose 3.3% to approximately R$3.91 billion, exceeding market expectations. The result was supported by stronger revenue, although the improvement was not enough to offset credit-quality concerns. Banco do Brasil second-quarter results
• Positive Sentiment: The bank approved R$584.9 million in additional interest on equity, with payment scheduled for September. The distribution provides a near-term shareholder return and may support investor sentiment. Banco do Brasil additional interest on equity
• Neutral Sentiment: Agribusiness loan quality appears to be stabilizing, and management expects agricultural credit costs to improve. However, reports indicate that the underlying credit problem may be shifting rather than disappearing. Banco do Brasil agricultural credit outlook
• Negative Sentiment: Investors were disappointed that stronger profit did not translate into a healthier operating picture, helping explain the market’s negative reaction to the results. Why Banco do Brasil shares fell after earnings
• Negative Sentiment: Delinquencies among individual borrowers are rising, while declining coverage leaves less protection if defaults continue to climb. This is the main concern behind the view that “the pain is not over.” Banco do Brasil second-quarter credit analysis
• Negative Sentiment: BDORY has fallen below its 200-day moving average and remains well below its 50-day average, signaling persistent technical weakness and reinforcing investor caution. Banco do Brasil moving average analysis

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on BDORY shares. Zacks Research cut shares of Banco Do Brasil from a "hold" rating to a "strong sell" rating in a report on Wednesday, July 22nd. The Goldman Sachs Group lowered Banco Do Brasil from a "hold" rating to a "strong sell" rating in a research note on Wednesday, April 29th. One research analyst has rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Banco Do Brasil presently has an average rating of "Sell".

Banco Do Brasil Price Performance

The stock's fifty day moving average is $3.97 and its 200-day moving average is $4.42. The stock has a market capitalization of $20.04 billion, a PE ratio of 8.53, a P/E/G ratio of 0.38 and a beta of 0.41. The company has a debt-to-equity ratio of 1.56, a current ratio of 0.93 and a quick ratio of 0.93.

Banco Do Brasil (OTCMKTS:BDORY - Get Free Report) last released its quarterly earnings data on Wednesday, May 13th. The financial services provider reported $0.11 earnings per share for the quarter, missing analysts' consensus estimates of $0.13 by ($0.02). Banco Do Brasil had a net margin of 3.34% and a return on equity of 8.86%. The firm had revenue of $8.60 billion during the quarter, compared to analysts' expectations of $7.84 billion. As a group, equities analysts predict that Banco Do Brasil SA will post 0.64 earnings per share for the current fiscal year.

About Banco Do Brasil

Banco do Brasil SA is one of Brazil's largest and oldest financial institutions, founded in 1808. As a state-controlled commercial bank with a long history in the country's financial system, it provides a broad range of universal banking services to individual, corporate and public-sector clients. The bank's activities include retail banking, corporate and commercial lending, asset management, investment banking, treasury and capital markets operations, trade finance and international banking services.

Banco do Brasil offers a full suite of products such as deposit accounts, payment and cash management services, mortgages and consumer credit, credit cards, leasing and structured finance, as well as insurance and pension products through affiliated businesses.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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