Itochu (OTCMKTS:ITOCY) Shares Gap Up - Should You Buy?

Key Points

• Gapped up: Itochu shares opened at $13.17 versus the prior close of $12.41 and were last trading around $12.58, up roughly 1.8% on light volume (6,625 shares).
• Analyst upgrades: Daiwa and Nomura raised Itochu to "strong-buy" and Goldman Sachs initiated coverage at "buy," leaving the stock with an average rating of Buy.
• Earnings and valuation: Itochu reported quarterly EPS of $0.18 (in line with estimates); the stock trades at a PE of 13.44 with a market cap of about $100.1B and analysts forecast ~0.41 EPS for the year, while institutional ownership is reported very low at 0.08%.

Itochu Corp. (OTCMKTS:ITOCY - Get Free Report)'s stock price gapped up prior to trading on Friday . The stock had previously closed at $12.41, but opened at $13.17. Itochu shares last traded at $12.5825, with a volume of 6,625 shares changing hands.

Analyst Ratings Changes

ITOCY has been the topic of a number of recent research reports. Daiwa Securities Group upgraded shares of Itochu to a "strong-buy" rating in a research note on Friday, February 27th. Nomura raised Itochu to a "strong-buy" rating in a research report on Wednesday, February 25th. Zacks Research upgraded shares of Itochu to a "hold" rating in a report on Monday, January 12th. Finally, The Goldman Sachs Group started coverage on Itochu in a research report on Tuesday, January 6th. They issued a "buy" rating for the company. Two research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Buy".

Itochu Trading Up 1.8%

The stock has a 50-day moving average of $12.94 and a 200 day moving average of $58.13. The company has a quick ratio of 0.96, a current ratio of 1.30 and a debt-to-equity ratio of 0.41. The stock has a market cap of $100.12 billion, a PE ratio of 13.44 and a beta of 0.70.

Itochu (OTCMKTS:ITOCY - Get Free Report) last posted its quarterly earnings results on Friday, May 1st. The company reported $0.18 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.18. As a group, sell-side analysts anticipate that Itochu Corp. will post 0.41 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. OLD National Bancorp IN boosted its holdings in Itochu by 898.1% in the first quarter. OLD National Bancorp IN now owns 15,551 shares of the company's stock valued at $193,000 after purchasing an additional 13,993 shares during the last quarter. Aristotle Capital Management LLC acquired a new position in shares of Itochu in the 4th quarter valued at about $1,487,000. Confluence Investment Management LLC raised its position in Itochu by 4.8% during the fourth quarter. Confluence Investment Management LLC now owns 9,827 shares of the company's stock valued at $1,243,000 after acquiring an additional 446 shares in the last quarter. GAMMA Investing LLC grew its stake in shares of Itochu by 21.8% during the 4th quarter. GAMMA Investing LLC now owns 2,881 shares of the company's stock worth $364,000 after purchasing an additional 516 shares during the period. Finally, Atlas Capital Advisors Inc. purchased a new stake in Itochu during the fourth quarter worth $279,000. 0.08% of the stock is currently owned by institutional investors and hedge funds.

About Itochu

Itochu Corporation is a major Japanese trading company (sogo shosha) that operates a diversified global business spanning trading, investment and services. The company traces its roots to the 19th century and has evolved from a textile trading firm into a broad-based commercial and investment group. Its American Depositary Receipts trade over the counter under the symbol ITOCY.

Itochu conducts commodity and product trading across a wide range of sectors including textiles and apparel, machinery, metals and minerals, energy and chemicals, food and consumer products, information and communications technology, and real estate.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.