Banco Santander Brasil (NYSE:BSBR) Shares Gap Up - Should You Buy?

Key Points

• BSBR shares jumped nearly 12%, opening at $5.63 versus a prior close of $5.05, and last traded around $5.66.
• Analyst sentiment is bearish: recent downgrades include JPMorgan lowering its rating to “neutral” and cutting its price target to $6.00. The consensus rating is “Reduce,” based on two Hold and two Sell ratings.
• The bank announced a quarterly dividend of $0.1045 per share, equating to an annualized $0.42 payout and a 7.3% yield; insiders have also made net purchases over the past 90 days despite one insider sale.

Shares of Banco Santander Brasil SA (NYSE:BSBR - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $5.05, but opened at $5.63. Banco Santander Brasil shares last traded at $5.6640, with a volume of 1,086,291 shares.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Weiss Ratings downgraded shares of Banco Santander Brasil from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday, June 29th. Zacks Research downgraded shares of Banco Santander Brasil from a "hold" rating to a "strong sell" rating in a report on Friday, July 3rd. Wall Street Zen downgraded shares of Banco Santander Brasil from a "buy" rating to a "hold" rating in a report on Sunday, July 12th. Finally, JPMorgan Chase & Co. lowered shares of Banco Santander Brasil from an "overweight" rating to a "neutral" rating and cut their price objective for the company from $6.50 to $6.00 in a research report on Thursday. Two equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Banco Santander Brasil currently has a consensus rating of "Reduce" and a consensus target price of $6.00.

Banco Santander Brasil Stock Performance

The company has a debt-to-equity ratio of 3.25, a quick ratio of 1.29 and a current ratio of 1.29. The business has a fifty day simple moving average of $5.31 and a two-hundred day simple moving average of $5.89.

Banco Santander Brasil Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, August 17th. Investors of record on Thursday, July 30th will be given a dividend of $0.1045 per share. This represents a $0.42 annualized dividend and a dividend yield of 7.3%. The ex-dividend date is Thursday, July 30th.

Insider Buying and Selling at Banco Santander Brasil

In other Banco Santander Brasil news, insider Eduardo Alvarez Garrido sold 7,500 shares of the company's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $5.43, for a total value of $40,725.00. Following the sale, the insider directly owned 24,701 shares in the company, valued at $134,126.43. This represents a 23.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Mario Roberto Opice Leao purchased 276,851 shares of the stock in a transaction on Tuesday, June 16th. The stock was bought at an average price of $5.38 per share, for a total transaction of $1,489,458.38. Following the completion of the transaction, the chief executive officer directly owned 536,751 shares of the company's stock, valued at approximately $2,887,720.38. This trade represents a 106.52% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders purchased 500,251 shares of company stock worth $2,651,888. 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 company. Royal Bank of Canada grew its holdings in shares of Banco Santander Brasil by 288.1% in the 4th 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 during the last quarter. EverSource Wealth Advisors LLC boosted its position in Banco Santander Brasil by 251.5% in the first quarter. EverSource Wealth Advisors LLC now owns 5,804 shares of the bank's stock valued at $34,000 after buying an additional 4,153 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in Banco Santander Brasil in the fourth quarter valued at about $36,000. Cubist Systematic Strategies LLC bought a new stake in Banco Santander Brasil during the first quarter worth about $46,000. Finally, Empirical Financial Services LLC d.b.a. Empirical Wealth Management bought a new stake in Banco Santander Brasil during the fourth quarter worth about $76,000. Institutional investors and hedge funds 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.

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.