BB Seguridade Participacoes (OTCMKTS:BBSEY) Shares Gap Down - Should You Sell?

Key Points

• BB Seguridade shares gapped down from $7.46 to an open of $7.02 and last traded at $7.02 on light volume (1,880 shares).
• Analyst sentiment is mixed—one Strong Buy, one Hold and one Sell—giving the stock a consensus rating of Hold.
• The company reported an EPS beat ($0.22 vs. $0.21) but missed revenue expectations; it shows very high profitability (net margin 87.29%, ROE 80.16%) and trades at a P/E of 8.47 with a $13.65 billion market cap.

BB Seguridade Participacoes SA (OTCMKTS:BBSEY - Get Free Report)'s share price gapped down prior to trading on Thursday . The stock had previously closed at $7.46, but opened at $7.02. BB Seguridade Participacoes shares last traded at $7.02, with a volume of 1,880 shares trading hands.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on BBSEY. Itau BBA Securities cut shares of BB Seguridade Participacoes to an "underperform" rating in a research report on Wednesday, April 15th. Zacks Research raised shares of BB Seguridade Participacoes from a "hold" rating to a "strong-buy" rating in a research report on Friday, April 17th. Finally, The Goldman Sachs Group cut shares of BB Seguridade Participacoes to a "neutral" rating in a research report on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, BB Seguridade Participacoes presently has a consensus rating of "Hold".

BB Seguridade Participacoes Price Performance

The company's 50-day moving average is $6.91 and its two-hundred day moving average is $6.65. The firm has a market cap of $13.65 billion, a P/E ratio of 8.47 and a beta of 0.39.

BB Seguridade Participacoes (OTCMKTS:BBSEY - Get Free Report) last posted its quarterly earnings data on Monday, February 9th. The company reported $0.22 earnings per share for the quarter, topping the consensus estimate of $0.21 by $0.01. BB Seguridade Participacoes had a net margin of 87.29% and a return on equity of 80.16%. The business had revenue of $486.61 million during the quarter, compared to analysts' expectations of $509.09 million. On average, analysts expect that BB Seguridade Participacoes SA will post 0.86 EPS for the current fiscal year.

About BB Seguridade Participacoes

BB Seguridade Participações SA is a leading Brazilian insurance and pension holding company, primarily focused on the design, underwriting and distribution of risk protection and retirement solutions. As a publicly traded subsidiary of Banco do Brasil, BB Seguridade operates through a network of specialized businesses that serve both individual and institutional clients across Brazil.

The company’s main offerings are delivered via its core subsidiaries: Brasilprev (private pension and savings plans), BB Mapfre (property & casualty insurance), Brasilveículos (auto warranty and mechanical protection), Brasilcap (surety bonds) and BB Seguros (life, rural and personal accident insurance).

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