BRF (NYSE:BRFS) Shares Gap Down - Here's Why

Key Points

• BRF (NYSE:BRFS) shares gapped down from a previous close of $4.06 to open at $3.90, with the latest trading price at $3.88.
• Wall Street analysts downgraded BRF from a "buy" to a "hold" rating, with a consensus price target of $3.50, following an earnings report that missed estimates.
• The company announced a special dividend of $0.3483 to be paid on October 9th, with an exceptional yield of 230.0%.

BRF S.A. (NYSE:BRFS - Get Free Report)'s stock price gapped down before the market opened on Friday . The stock had previously closed at $4.06, but opened at $3.90. BRF shares last traded at $3.88, with a volume of 281,379 shares traded.

Analyst Ratings Changes

Separately, Wall Street Zen lowered shares of BRF from a "buy" rating to a "hold" rating in a report on Saturday, August 16th. One investment analyst has rated the stock with a Strong Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, BRF currently has a consensus rating of "Buy" and a consensus target price of $3.50.

BRF Price Performance

The company has a quick ratio of 1.05, a current ratio of 1.52 and a debt-to-equity ratio of 1.03. The firm has a 50 day moving average price of $3.70 and a 200-day moving average price of $3.62.

BRF (NYSE:BRFS - Get Free Report) last posted its quarterly earnings results on Thursday, August 14th. The company reported $0.08 EPS for the quarter, missing the consensus estimate of $0.11 by ($0.03). BRF had a net margin of 5.84% and a return on equity of 20.20%. The business had revenue of $2.85 billion during the quarter, compared to analysts' expectations of $15.29 billion. As a group, equities analysts predict that BRF S.A. will post 0.45 earnings per share for the current fiscal year.

BRF Dividend Announcement

The firm also recently declared a special dividend, which will be paid on Thursday, October 9th. Shareholders of record on Monday, September 22nd will be issued a $0.3483 dividend. The ex-dividend date of this dividend is Monday, September 22nd. BRF's dividend payout ratio is presently 23.68%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. GAMMA Investing LLC raised its position in shares of BRF by 111.7% in the first quarter. GAMMA Investing LLC now owns 9,082 shares of the company's stock worth $31,000 after acquiring an additional 4,792 shares during the period. R Squared Ltd raised its position in shares of BRF by 912.7% during the 1st quarter. R Squared Ltd now owns 11,950 shares of the company's stock worth $41,000 after purchasing an additional 10,770 shares during the last quarter. Inspire Investing LLC acquired a new position in shares of BRF during the 1st quarter worth about $42,000. D Orazio & Associates Inc. acquired a new stake in BRF in the 2nd quarter valued at about $46,000. Finally, Quantbot Technologies LP raised its holdings in BRF by 50.9% in the 1st quarter. Quantbot Technologies LP now owns 19,538 shares of the company's stock valued at $67,000 after acquiring an additional 6,589 shares during the last quarter. Institutional investors and hedge funds own 4.76% of the company's stock.

About BRF

BRF SA raises, produces, and slaughters poultry and pork for processing, production, and sale of fresh meat, processed products, pasta, margarine, pet food, and other products. The company provides frozen whole and cut chicken, frozen pork, and turkey, and halal products for Islamic markets; processed foods, such as marinated, frozen, seasoned whole, and cut chicken, roosters, sausages, ham products, bologna, frankfurters, salamis, bacons, cold meats, and other smoked products; and hamburgers, steaks, breaded meat products, kibbeh, and meatballs, as well as chicken sausages, hot dogs, and chicken bologna.