Cosan (NYSE:CSAN) Shares Gap Down - What's Next?

Key Points

• Cosan shares experienced a decline, opening at $5.70 after closing at $5.88, with last trading at $5.67 and a volume of 223,673 shares.
• Analysts have mixed views on Cosan, with Zacks Research downgrading it from "strong-buy" to "hold," while Goldman Sachs lowered its price target from $6.60 to $5.00, contributing to a consensus price target of $12.00.
• The company reported a substantial loss with an EPS of ($0.36) against revenue expectations of $7.12 billion, indicating operational challenges moving forward.

Cosan S.A. Sponsored ADR (NYSE:CSAN - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $5.88, but opened at $5.70. Cosan shares last traded at $5.67, with a volume of 223,673 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the company. Zacks Research lowered Cosan from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 26th. HSBC reissued a "reduce" rating and issued a $4.40 target price on shares of Cosan in a report on Monday. Wall Street Zen raised Cosan from a "sell" rating to a "hold" rating in a report on Friday, August 22nd. Finally, The Goldman Sachs Group dropped their target price on Cosan from $6.60 to $5.00 and set a "neutral" rating on the stock in a report on Wednesday, August 27th. One 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 assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $9.47.

Cosan Stock Performance

The company has a current ratio of 2.13, a quick ratio of 1.98 and a debt-to-equity ratio of 1.88. The firm has a fifty day simple moving average of $4.54 and a 200-day simple moving average of $5.05.

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

Hedge Funds Weigh In On Cosan

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

About Cosan

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.