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

Key Points

• Cosan's stock gapped down from $4.22 to $4.00 at market open, last trading at $4.01 with significant volume of 387,295 shares.
• Wall Street Zen dropped Cosan's rating from "hold" to "sell," although the consensus rating remains "Strong Buy" with a price target of $19.00.
• Cosan reported a negative earnings per share of ($0.36) for the last quarter, with revenue significantly below analyst estimates at $1.23 billion versus expectations of $7.12 billion.

Cosan S.A. Sponsored ADR (NYSE:CSAN - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $4.22, but opened at $4.00. Cosan shares last traded at $4.01, with a volume of 387,295 shares trading hands.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen cut shares of Cosan from a "hold" rating to a "sell" rating in a research note on Saturday, May 24th. One investment analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the company's stock. Based on data from MarketBeat.com, Cosan presently has a consensus rating of "Strong Buy" and an average target price of $19.00.

Cosan Price Performance

The business's 50 day moving average is $4.60 and its 200-day moving average is $5.06. The firm has a market capitalization of $1.86 billion, a P/E ratio of 3.01, a PEG ratio of 0.12 and a beta of 0.98. 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 announced its quarterly earnings data on Thursday, August 14th. The company reported ($0.36) earnings per share (EPS) for the quarter. The firm had revenue of $1.23 billion during 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%. As a group, sell-side analysts predict that Cosan S.A. Sponsored ADR will post 0.2 EPS for the current fiscal year.

Institutional Trading of Cosan

A number of hedge funds have recently added to or reduced their stakes in the stock. Jane Street Group LLC boosted its position in Cosan by 4.2% in the second quarter. Jane Street Group LLC now owns 95,992 shares of the company's stock valued at $485,000 after buying an additional 3,866 shares in the last quarter. BNP Paribas Financial Markets acquired a new position in shares of Cosan during the fourth quarter worth $27,000. Clear Harbor Asset Management LLC lifted its holdings in shares of Cosan by 12.7% during the second quarter. Clear Harbor Asset Management LLC now owns 44,500 shares of the company's stock worth $225,000 after purchasing an additional 5,000 shares during the period. GAMMA Investing LLC lifted its holdings in shares of 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. Finally, Virtus Investment Advisers LLC lifted its holdings in shares of Cosan by 21.8% during the second quarter. Virtus Investment Advisers LLC now owns 32,492 shares of the company's stock worth $164,000 after purchasing an additional 5,820 shares during the period.

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.