Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (NYSE:SBS) Trading Down 6.8% Following Weak Earnings

Key Points

• SABESP shares fell 6.8% to about $4.76 after the company reported quarterly earnings of $0.07 per share, missing the $0.09 consensus estimate, while revenue of $1.16 billion also fell short of the $1.23 billion forecast.
• Analyst sentiment remains mostly positive despite the weak results: two analysts rate the stock a Buy and one rates it Hold, producing a consensus “Moderate Buy” rating.
• Institutional investors and hedge funds own 10.62% of the company, with several funds recently initiating positions or increasing their holdings.

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (NYSE:SBS - Get Free Report) shares dropped 6.8% on Thursday following a weaker than expected earnings announcement. The stock traded as low as $4.77 and last traded at $4.7550. 3,486,376 shares traded hands during mid-day trading, a decline of 47% from the average daily volume of 6,580,449 shares. The stock had previously closed at $5.10.

The utilities provider reported $0.07 earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.02). The firm had revenue of $1.16 billion during the quarter, compared to analysts' expectations of $1.23 billion. Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp had a net margin of 24.25% and a return on equity of 16.38%.

Wall Street Analyst Weigh In

SBS has been the subject of several recent analyst reports. Zacks Research downgraded Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 28th. 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 note on Sunday. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp in a research note on Friday, August 7th. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $183.00.

Hedge Funds Weigh In On Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp

Several hedge funds and other institutional investors have recently modified their holdings of SBS. Arax Advisory Partners acquired a new stake in shares of Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp in the 4th quarter worth about $26,000. Garton & Associates Financial Advisors LLC bought a new position in Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp in the 4th quarter worth about $44,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp in the fourth quarter valued at approximately $54,000. EverSource Wealth Advisors LLC raised its holdings in shares of Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp by 246.4% during the second quarter. EverSource Wealth Advisors LLC now owns 2,342 shares of the utilities provider's stock valued at $51,000 after buying an additional 1,666 shares during the last quarter. Finally, Atlas Capital Advisors Inc. acquired a new position in shares of Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp during the fourth quarter worth approximately $86,000. Institutional investors and hedge funds own 10.62% of the company's stock.

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp Price Performance

The firm has a market capitalization of $16.73 billion, a P/E ratio of 12.40, a price-to-earnings-growth ratio of 4.28 and a beta of 0.68. The business has a fifty day moving average of $5.57 and a 200-day moving average of $76.80. The company has a debt-to-equity ratio of 1.07, a quick ratio of 1.73 and a current ratio of 1.74.

About Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp

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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