Cosan (NYSE:CSAN) Shares Down 4.4% - Here's Why

Key Points

• Cosan shares fell 4.4% to about $2.50, with trading volume roughly 79% below its average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is cautious: four analysts rate Cosan “Hold” and two rate it “Sell,” producing a consensus “Reduce” rating and an average price target of $3.85. HSBC recently cut its target to $3.20 and downgraded the stock to “Reduce.”
• Insider activity was mixed, with CEO Marcelo Eduardo Martins buying roughly 2.44 million shares while director Rubens Ometto Silveira Mello sold 77,640 shares. Several institutional investors also increased their positions during the fourth quarter.

Cosan S.A. Sponsored ADR (NYSE:CSAN - Get Free Report) traded down 4.4% during trading on Friday . The company traded as low as $2.49 and last traded at $2.4950. Approximately 411,497 shares were traded during trading, a decline of 79% from the average daily volume of 2,006,698 shares. The stock had previously closed at $2.61.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on CSAN shares. Citigroup raised shares of Cosan to a "hold" rating in a research report on Monday, June 29th. Weiss Ratings restated a "sell (e+)" rating on shares of Cosan in a report on Tuesday, June 9th. HSBC lowered Cosan from a "hold" rating to a "reduce" rating and reduced their price objective for the company from $5.00 to $3.20 in a research note on Tuesday, May 26th. Jefferies Financial Group cut Cosan to a "hold" rating in a report on Tuesday, May 26th. Finally, Zacks Research raised shares of Cosan to a "hold" rating in a research report on Thursday, June 18th. Four analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $3.85.

Cosan Trading Down 4.8%

The firm has a fifty day moving average of $2.91 and a 200 day moving average of $3.73. The firm has a market capitalization of $2.46 billion, a PE ratio of -1.01 and a beta of 0.70. The company has a debt-to-equity ratio of 2.12, a quick ratio of 1.76 and a current ratio of 1.87.

Insiders Place Their Bets

In related news, Director Rubens Ometto Silveira Mello sold 77,640 shares of Cosan stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $3.44, for a total transaction of $267,081.60. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Marcelo Eduardo Martins acquired 2,441,528 shares of the business's stock in a transaction on Tuesday, May 19th. The stock was purchased at an average price of $5.14 per share, for a total transaction of $12,549,453.92. Following the acquisition, the chief executive officer directly owned 4,890,286 shares in the company, valued at $25,136,070.04. This represents a 99.70% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Monaco Asset Management SAM boosted its stake in shares of Cosan by 200.5% during the 4th quarter. Monaco Asset Management SAM now owns 3,004,813 shares of the company's stock valued at $11,869,000 after buying an additional 2,004,813 shares during the last quarter. UBS Group AG raised its holdings in Cosan by 36.9% in the fourth quarter. UBS Group AG now owns 3,492,792 shares of the company's stock valued at $13,797,000 after acquiring an additional 941,548 shares in the last quarter. Balyasny Asset Management L.P. raised its holdings in Cosan by 5,210.4% in the fourth quarter. Balyasny Asset Management L.P. now owns 776,592 shares of the company's stock valued at $3,068,000 after acquiring an additional 761,968 shares in the last quarter. XTX Topco Ltd boosted its stake in Cosan by 1,312.8% during the 4th quarter. XTX Topco Ltd now owns 588,722 shares of the company's stock valued at $2,325,000 after acquiring an additional 547,051 shares during the last quarter. Finally, Tejara Capital Ltd acquired a new position in Cosan during the 4th quarter worth $1,386,000.

About Cosan

Cosan Limited NYSE: CSAN is a Brazilian diversified energy and logistics group focused on agribusiness, fuels, and infrastructure. Its core activities include the cultivation of sugarcane, production of ethanol and sugar, generation of bioelectricity from bagasse, and distribution of fuels under the Raízen joint venture with Shell. Through its subsidiary Moove, Cosan is a leading global producer of base oils and lubricants, while Comgás serves as one of Brazil's largest natural gas distributors.

Founded in 1936 in the state of São Paulo, Cosan has grown through organic expansion and strategic acquisitions.

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