Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (NYSE:SBS) Short Interest Up 413.4% in May

Key Points

• Short interest in Sabesp surged 413.4% in May, rising to 14.6 million shares as of May 15, though that still amounts to only about 0.4% of shares outstanding.
• Analyst sentiment is mixed but generally positive, with a consensus rating of Moderate Buy and an average price target of $183; recent calls included both upgrades and downgrades.
• Sabesp recently reported weaker-than-expected quarterly results, with EPS of $0.02 versus the $0.08 estimate, and also paid a special dividend of $0.4772 per share.

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (NYSE:SBS - Get Free Report) was the target of a significant growth in short interest in May. As of May 15th, there was short interest totaling 14,602,841 shares, a growth of 413.4% from the April 30th total of 2,844,497 shares. Based on an average daily volume of 5,520,243 shares, the short-interest ratio is currently 2.6 days. Approximately 0.4% of the shares of the stock are sold short.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Zacks Research downgraded Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. Weiss Ratings lowered Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp from a "buy (a-)" rating to a "buy (b)" rating in a research report on Monday, May 11th. Jefferies Financial Group began coverage on Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp in a research report on Thursday, March 19th. They set a "buy" rating and a $183.00 price target on the stock. Finally, Wall Street Zen upgraded Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $183.00.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SBS. Arax Advisory Partners purchased a new position in Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp during the 4th quarter valued at about $26,000. Garton & Associates Financial Advisors LLC purchased a new position in Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp during the 4th quarter valued at about $44,000. EverSource Wealth Advisors LLC increased its holdings in Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp by 246.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,342 shares of the utilities provider's stock valued at $51,000 after purchasing an additional 1,666 shares during the period. Caitong International Asset Management Co. Ltd purchased a new position in Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp during the 4th quarter valued at about $54,000. Finally, Atlas Capital Advisors Inc. purchased a new position in Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp during the 4th quarter valued at about $86,000. Hedge funds and other institutional investors own 10.62% of the company's stock.

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp Trading Down 0.4%

SBS traded down $0.03 on Thursday, hitting $5.64. 1,836,904 shares of the company were exchanged, compared to its average volume of 6,663,930. The firm has a fifty day simple moving average of $106.83 and a two-hundred day simple moving average of $123.11. The company has a debt-to-equity ratio of 1.07, a quick ratio of 1.73 and a current ratio of 1.74. Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp has a 12 month low of $3.78 and a 12 month high of $7.16. The stock has a market capitalization of $19.83 billion, a PE ratio of 14.67, a price-to-earnings-growth ratio of 1.35 and a beta of 0.74.

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (NYSE:SBS - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The utilities provider reported $0.02 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.08 by ($0.06). Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp had a return on equity of 16.38% and a net margin of 24.25%.The company had revenue of $1.16 billion for the quarter, compared to the consensus estimate of $1.28 billion. Sell-side analysts expect that Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp will post 1.24 earnings per share for the current year.

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp Announces Dividend

The firm also recently declared a special dividend, which was paid on Monday, May 11th. Investors of record on Friday, March 27th were issued a dividend of $0.4772 per share. This represents a yield of 55.0%. The ex-dividend date was Friday, March 27th. Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp's payout ratio is currently 26.32%.

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp Company Profile

Companhia de Saneamento Básico do Estado de São Paulo (SABESP) is a Brazilian utility that provides water supply and wastewater collection and treatment services. As the principal sanitation company serving the state of São Paulo, SABESP operates a wide range of infrastructure spanning water capture, treatment plants, distribution networks and sewage systems. The company’s activities support residential, commercial and industrial customers and are focused on delivering potable water, ensuring water quality and expanding access to sanitation services.

SABESP’s service offering includes the operation and maintenance of water treatment and sewage treatment facilities, network expansion and rehabilitation, meter reading and billing, customer service and environmental programs aimed at improving sewage treatment rates and protecting water resources.

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