Cosan (NYSE:CSAN) Shares Down 7.7% - Here's Why

Key Points

• Cosan S.A. Sponsored ADR shares experienced a significant drop of 7.7%, closing at $4.61 after reaching a low of $4.65 during trading.
• Recent analyst ratings show mixed sentiments, with HSBC downgrading the stock to a "moderate sell," while Zacks lowered its rating from "strong-buy" to "hold."
• The company's quarterly earnings revealed a loss of ($0.36) per share on revenue of $1.23 billion, significantly below the estimated $7.12 billion.

Cosan S.A. Sponsored ADR (NYSE:CSAN - Get Free Report)'s share price dropped 7.7% during trading on Thursday . The company traded as low as $4.65 and last traded at $4.61. Approximately 1,384,316 shares traded hands during mid-day trading, a decline of 7% from the average daily volume of 1,485,785 shares. The stock had previously closed at $4.99.

Analyst Upgrades and Downgrades

CSAN has been the topic of several research reports. Hsbc Global Res upgraded shares of Cosan to a "moderate sell" rating in a report on Monday. Wall Street Zen upgraded shares of Cosan from a "sell" rating to a "hold" rating in a report on Friday, August 22nd. The Goldman Sachs Group lowered their price objective on shares of Cosan from $6.60 to $5.00 and set a "neutral" rating on the stock in a report on Wednesday, August 27th. HSBC restated a "reduce" rating and set a $4.40 price objective on shares of Cosan in a report on Monday. Finally, Zacks Research downgraded shares of Cosan from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 26th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $9.47.

Cosan Stock Performance

The company has a market cap of $2.15 billion, a P/E ratio of 3.49, a price-to-earnings-growth ratio of 0.33 and a beta of 1.05. The company's 50-day moving average is $4.56 and its two-hundred day moving average is $5.04. The company has a quick ratio of 1.98, a current ratio of 2.13 and a debt-to-equity ratio of 1.88.

Cosan (NYSE:CSAN - Get Free Report) last posted its quarterly earnings results on Thursday, August 14th. The company reported ($0.36) earnings per share for the quarter. The company had revenue of $1.23 billion for the quarter, compared to the consensus estimate of $7.12 billion. Cosan had a negative net margin of 28.08% and a negative return on equity of 27.61%. Equities analysts predict that Cosan S.A. Sponsored ADR will post 0.2 EPS for the current year.

Hedge Funds Weigh In On Cosan

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CSAN. BNP Paribas Financial Markets bought a new position in Cosan during the fourth quarter worth about $27,000. GAMMA Investing LLC boosted its position in Cosan by 799.4% during the first quarter. GAMMA Investing LLC now owns 5,747 shares of the company's stock worth $30,000 after purchasing an additional 5,108 shares during the period. FORA Capital LLC bought a new position in Cosan during the first quarter worth about $58,000. Ballentine Partners LLC bought a new position in Cosan during the second quarter worth about $64,000. Finally, Cerity Partners LLC bought a new position in Cosan during the first quarter worth about $69,000.

Cosan Company Profile

Cosan SA engages in the fuel distribution business. It operates through Raízen, Compass, Moove, Rumo, and Radar segments. The company's Raízen segment engages in the production, commercialization, origination, and trading of ethanol, bioenergy, renewable sources, and sugar; trading and resale of electricity; and distribution and commercialization of fuels and lubricants.

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