Banco Santander Brasil (NYSE:BSBR) Sees Strong Trading Volume - Here's Why

Key Points

• BSBR trading volume surged 73% to approximately 2.8 million shares, while the stock traded near $5.58, slightly below its prior close of $5.60.
• Analyst sentiment remains cautious: JPMorgan cut its rating to neutral, Zacks downgraded the stock to strong sell, and the consensus rating is “Reduce” with a $6.00 price target.
• Banco Santander Brasil recently paid a quarterly dividend of $0.1045, equivalent to an annualized $0.42 payout and a 7.5% dividend yield; insiders were net buyers over the past 90 days.

Banco Santander Brasil SA (NYSE:BSBR - Get Free Report) shares saw unusually-high trading volume on Wednesday . Approximately 2,806,125 shares changed hands during mid-day trading, an increase of 73% from the previous session's volume of 1,624,800 shares.The stock last traded at $5.5750 and had previously closed at $5.60.

Analyst Upgrades and Downgrades

Several research firms have commented on BSBR. JPMorgan Chase & Co. lowered shares of Banco Santander Brasil from an "overweight" rating to a "neutral" rating and decreased their target price for the company from $6.50 to $6.00 in a report on Thursday, July 30th. Wall Street Zen downgraded shares of Banco Santander Brasil from a "buy" rating to a "hold" rating in a report on Sunday, July 12th. Weiss Ratings upgraded shares of Banco Santander Brasil from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, July 31st. Finally, Zacks Research cut shares of Banco Santander Brasil from a "hold" rating to a "strong sell" rating in a research note on Friday, July 3rd. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Banco Santander Brasil has a consensus rating of "Reduce" and an average price target of $6.00.

Banco Santander Brasil Price Performance

The business's fifty day moving average is $5.40 and its 200-day moving average is $5.82. The company has a quick ratio of 1.29, a current ratio of 1.29 and a debt-to-equity ratio of 3.25.

Banco Santander Brasil Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, August 17th. Stockholders of record on Thursday, July 30th were paid a $0.1045 dividend. The ex-dividend date of this dividend was Thursday, July 30th. This represents a $0.42 annualized dividend and a dividend yield of 7.5%.

Insider Activity at Banco Santander Brasil

In related news, CEO Mario Roberto Opice Leao acquired 276,851 shares of the business's stock in a transaction that occurred on Tuesday, June 16th. The shares were bought at an average cost of $5.38 per share, with a total value of $1,489,458.38. Following the completion of the purchase, the chief executive officer directly owned 536,751 shares in the company, valued at $2,887,720.38. The trade was a 106.52% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, insider Gustavo De Sousa Santos sold 29,200 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $5.70, for a total value of $166,440.00. Following the completion of the sale, the insider owned 53,023 shares in the company, valued at $302,231.10. The trade was a 35.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders purchased 500,251 shares of company stock valued at $2,651,888 and sold 143,161 shares valued at $817,578. 0.06% of the stock is owned by insiders.

Institutional Investors Weigh In On Banco Santander Brasil

Several institutional investors and hedge funds have recently made changes to their positions in the business. Royal Bank of Canada increased its holdings in Banco Santander Brasil by 288.1% in the fourth quarter. Royal Bank of Canada now owns 5,038 shares of the bank's stock worth $31,000 after purchasing an additional 3,740 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in shares of Banco Santander Brasil by 251.5% during the 1st quarter. EverSource Wealth Advisors LLC now owns 5,804 shares of the bank's stock worth $34,000 after buying an additional 4,153 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Banco Santander Brasil during the 4th quarter worth approximately $36,000. Cubist Systematic Strategies LLC bought a new stake in shares of Banco Santander Brasil in the 1st quarter valued at $46,000. Finally, May Hill Capital LLC bought a new stake in shares of Banco Santander Brasil in the 4th quarter valued at $83,000. Institutional investors own 14.53% of the company's stock.

Banco Santander Brasil Company Profile

Banco Santander Brasil SA is the Brazilian unit of Spain-based Grupo Santander and one of the country's major commercial banks. Headquartered in São Paulo, the bank serves a broad client base across Brazil through an integrated network of branches, ATMs and digital channels. Its shares are represented abroad via American Depositary Shares listed on the New York Stock Exchange under the ticker BSBR.

The bank offers a full range of financial products and services for retail, small and medium-sized enterprises, and corporate clients.

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