Itau Unibanco Holding S.A. Sells 724,588 Shares of TIM S.A. Sponsored ADR $TIMB

Key Points

• Itau Unibanco Holding S.A. sold 724,588 shares of TIM S.A. Sponsored ADR, reducing its stake by 40.9% and holding approximately 0.22% of the company post-sale.
• TIM S.A. announced a new dividend of $0.1189 per share, yielding 720.0%, to be paid on October 28th.
• Goldman Sachs and Scotiabank have raised their price targets for TIM, suggesting a consensus target price of $21.25 with two analysts rating it as a Buy.

Itau Unibanco Holding S.A. lessened its stake in TIM S.A. Sponsored ADR (NYSE:TIMB - Free Report) by 40.9% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,045,316 shares of the company's stock after selling 724,588 shares during the quarter. Itau Unibanco Holding S.A. owned about 0.22% of TIM worth $16,141,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors also recently modified their holdings of the stock. GAMMA Investing LLC increased its holdings in shares of TIM by 119.3% in the first quarter. GAMMA Investing LLC now owns 3,028 shares of the company's stock valued at $47,000 after purchasing an additional 1,647 shares in the last quarter. Brooklyn Investment Group bought a new stake in shares of TIM in the 1st quarter valued at about $50,000. Farther Finance Advisors LLC raised its position in shares of TIM by 30,036.4% in the 1st quarter. Farther Finance Advisors LLC now owns 3,315 shares of the company's stock valued at $53,000 after acquiring an additional 3,304 shares during the period. SVB Wealth LLC bought a new position in TIM during the 1st quarter worth approximately $64,000. Finally, PNC Financial Services Group Inc. boosted its stake in TIM by 29.5% during the 1st quarter. PNC Financial Services Group Inc. now owns 4,258 shares of the company's stock worth $67,000 after acquiring an additional 969 shares during the last quarter.

TIM Stock Down 1.8%

TIM stock traded down $0.40 during midday trading on Friday, reaching $21.07. The stock had a trading volume of 321,838 shares, compared to its average volume of 398,565. The stock has a market capitalization of $10.20 billion, a P/E ratio of 16.34, a price-to-earnings-growth ratio of 0.84 and a beta of 0.60. The firm's fifty day simple moving average is $19.63 and its 200-day simple moving average is $17.33. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.88 and a current ratio of 0.91. TIM S.A. Sponsored ADR has a 1-year low of $11.32 and a 1-year high of $21.57.

TIM (NYSE:TIMB - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.04. TIM had a net margin of 13.91% and a return on equity of 13.99%. The company had revenue of $1.18 billion during the quarter, compared to analysts' expectations of $6.62 billion. As a group, analysts expect that TIM S.A. Sponsored ADR will post 1.34 EPS for the current fiscal year.

TIM Cuts Dividend

The business also recently declared a special dividend, which will be paid on Tuesday, October 28th. Shareholders of record on Monday, August 4th will be given a dividend of $0.1189 per share. The ex-dividend date of this dividend is Monday, August 4th. This represents a dividend yield of 720.0%. TIM's payout ratio is 67.44%.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. JPMorgan Chase & Co. upped their target price on shares of TIM from $22.00 to $24.50 and gave the company an "overweight" rating in a research note on Friday, August 8th. HSBC cut shares of TIM to a "hold" rating in a research report on Friday, June 13th. Scotiabank lifted their target price on TIM from $19.10 to $23.60 and gave the stock a "sector outperform" rating in a report on Thursday, July 31st. Hsbc Global Res cut TIM from a "strong-buy" rating to a "hold" rating in a research note on Thursday, June 12th. Finally, Wall Street Zen raised TIM from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 2nd. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $21.25.

About TIM

TIM SA, a telecommunications company, provides mobile voice, data, and broadband services in Brazil. The company offers in mobile, landline, long-distance, and data transmission services. It also offers fixed ultra-broadband, fixed ultraband broadband, and digital content services. The company serves individuals and corporates, as well as small, medium, and large companies.