Banco Santander Brasil SA (NYSE:BSBR) Short Interest Up 64.7% in August

Key Points

• Short interest surged 64.7% in August to 11.1 million shares, equivalent to 0.3% of shares outstanding and roughly two days of average trading volume.
• BSBR traded near $5.75, within a $4.94–$7.32 52-week range, while its quarterly dividend implies a 7.3% annualized yield.
• Analyst sentiment weakened, with downgrades from JPMorgan and UBS among others; the stock has an average “Reduce” rating and a consensus price target of $6.00.

Banco Santander Brasil SA (NYSE:BSBR - Get Free Report) was the recipient of a large increase in short interest during the month of August. As of August 14th, there was short interest totaling 11,126,167 shares, an increase of 64.7% from the July 30th total of 6,755,465 shares. Based on an average daily volume of 5,576,364 shares, the days-to-cover ratio is currently 2.0 days. Approximately 0.3% of the shares of the company are sold short.

Banco Santander Brasil Stock Performance

Banco Santander Brasil stock traded down $0.06 during mid-day trading on Monday, reaching $5.75. The company had a trading volume of 3,177,906 shares, compared to its average volume of 1,701,805. The company has a debt-to-equity ratio of 3.25, a current ratio of 1.29 and a quick ratio of 1.29. The company has a 50 day moving average of $5.47 and a 200-day moving average of $5.75. Banco Santander Brasil has a 52 week low of $4.94 and a 52 week high of $7.32.

Banco Santander Brasil Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, August 17th. Investors of record on Thursday, July 30th were paid a $0.1045 dividend. This represents a $0.42 annualized dividend and a dividend yield of 7.3%. The ex-dividend date was Thursday, July 30th.

Insider Transactions at Banco Santander Brasil

In other news, insider Gustavo De Sousa Santos sold 29,200 shares of Banco Santander Brasil stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $5.70, for a total value of $166,440.00. Following the transaction, the insider owned 53,023 shares of the company's stock, valued at $302,231.10. This trade represents a 35.51% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Celso Mateus De Queiroz sold 29,299 shares of the business's stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $5.78, for a total transaction of $169,348.22. Following the completion of the sale, the insider owned 23,838 shares of the company's stock, valued at $137,783.64. The trade was a 55.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders acquired 500,251 shares of company stock worth $2,651,888 and sold 161,268 shares worth $921,265. Company insiders own 0.06% of the company's stock.

Hedge Funds Weigh In On Banco Santander Brasil

Several institutional investors and hedge funds have recently added to or reduced their stakes in BSBR. Mariner LLC lifted its holdings in shares of Banco Santander Brasil by 1.8% during the 4th quarter. Mariner LLC now owns 97,928 shares of the bank's stock worth $598,000 after acquiring an additional 1,732 shares during the period. Royal Bank of Canada lifted its stake in Banco Santander Brasil by 41.6% during the first quarter. Royal Bank of Canada now owns 7,136 shares of the bank's stock worth $43,000 after purchasing an additional 2,098 shares during the period. Invesco Ltd. boosted its holdings in Banco Santander Brasil by 1.1% during the fourth quarter. Invesco Ltd. now owns 232,826 shares of the bank's stock valued at $1,423,000 after purchasing an additional 2,631 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in shares of Banco Santander Brasil by 251.5% in the 1st quarter. EverSource Wealth Advisors LLC now owns 5,804 shares of the bank's stock valued at $34,000 after purchasing an additional 4,153 shares during the period. Finally, Engineers Gate Manager LP raised its holdings in shares of Banco Santander Brasil by 40.9% in the 2nd quarter. Engineers Gate Manager LP now owns 18,910 shares of the bank's stock worth $103,000 after buying an additional 5,490 shares in the last quarter. 14.53% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

BSBR has been the subject of a number of research analyst reports. Wall Street Zen lowered shares of Banco Santander Brasil from a "buy" rating to a "hold" rating in a research report on Sunday, July 12th. JPMorgan Chase & Co. lowered Banco Santander Brasil from an "overweight" rating to a "neutral" rating and dropped their price objective for the stock from $6.50 to $6.00 in a research note on Thursday, July 30th. Weiss Ratings raised Banco Santander Brasil from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, July 31st. UBS Group downgraded Banco Santander Brasil from a "buy" rating to a "neutral" rating in a research note on Monday, August 24th. Finally, Zacks Research lowered Banco Santander Brasil from a "hold" rating to a "strong sell" rating in a report on Friday, July 3rd. Three equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Banco Santander Brasil presently has an average rating of "Reduce" and a consensus target price of $6.00.

Banco Santander Brasil Company Profile

Banco Santander Brasil SA is the Brazilian unit of Spain-based Grupo Santander and one of the country's major commercial banks. Headquartered in São Paulo, the bank serves a broad client base across Brazil through an integrated network of branches, ATMs and digital channels. Its shares are represented abroad via American Depositary Shares listed on the New York Stock Exchange under the ticker BSBR.

The bank offers a full range of financial products and services for retail, small and medium-sized enterprises, and corporate clients.

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