Banco Bradesco (NYSE:BBD) Hits New 12-Month Low - Time to Sell?

Key Points

• Banco Bradesco shares hit a new 52-week low, falling to $2.50 and trading about 3.3% lower, well below their 50-day and 200-day moving averages.
• Analyst sentiment is mostly cautious: one analyst rates the stock Buy and six rate it Hold, producing a consensus Hold rating and a $4.05 target price. JPMorgan, HSBC and Bradesco Corretora recently downgraded the shares.
• The bank missed quarterly expectations, reporting $0.12 EPS versus $0.13 expected and revenue of $6.32 billion versus $7.52 billion forecast. It nonetheless increased its monthly dividend to $0.0038 per share, equivalent to an approximately 1.8% yield.

Shares of Banco Bradesco SA (NYSE:BBD - Get Free Report) hit a new 52-week low during trading on Tuesday. The stock traded as low as $2.50 and last traded at $2.4850, with a volume of 428,724 shares trading hands. The stock had previously closed at $2.56.

Analysts Set New Price Targets

Several research firms recently issued reports on BBD. Wall Street Zen raised shares of Banco Bradesco to a "hold" rating in a report on Saturday, October 17th. JPMorgan Chase & Co. downgraded shares of Banco Bradesco from an "overweight" rating to a "neutral" rating in a report on Thursday, October 29th. The Goldman Sachs Group reissued a "neutral" rating and set a $4.20 target price on shares of Banco Bradesco in a research report on Friday, October 9th. Bradesco Corretora lowered shares of Banco Bradesco from an "overweight" rating to a "neutral" rating in a research report on Thursday, October 29th. Finally, HSBC downgraded Banco Bradesco from a "buy" rating to a "hold" rating and set a $3.90 price target on the stock. in a research report on Thursday, October 8th. One analyst has rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $4.05.

Banco Bradesco Trading Down 3.3%

The stock has a market cap of $16.90 billion, a P/E ratio of 5.38, a PEG ratio of 0.48 and a beta of 0.46. The business's 50 day simple moving average is $3.57 and its 200 day simple moving average is $3.64. The company has a debt-to-equity ratio of 2.78, a current ratio of 1.72 and a quick ratio of 1.48.

Banco Bradesco (NYSE:BBD - Get Free Report) last issued its earnings results on Thursday, October 22nd. The bank reported $0.12 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.13 by ($0.01). The company had revenue of $6.32 billion during the quarter, compared to analyst estimates of $7.52 billion. Banco Bradesco had a return on equity of 15.06% and a net margin of 12.58%. On average, analysts expect that Banco Bradesco SA will post 0.49 earnings per share for the current fiscal year.

Banco Bradesco Increases Dividend

The business also recently disclosed a monthly dividend, which will be paid on Friday, December 11th. Shareholders of record on Thursday, November 5th will be paid a dividend of $0.0038 per share. This is an increase from Banco Bradesco's previous monthly dividend of $0.0037. This represents a $0.05 annualized dividend and a yield of 1.8%. The ex-dividend date is Thursday, November 5th. Banco Bradesco's dividend payout ratio is currently 4.35%.

Institutional Investors Weigh In On Banco Bradesco

Hedge funds have recently made changes to their positions in the company. Tidal Investments LLC lifted its position in Banco Bradesco by 1.9% during the 2nd quarter. Tidal Investments LLC now owns 160,721 shares of the bank's stock worth $558,000 after buying an additional 2,990 shares in the last quarter. Compound Planning Inc. increased its position in Banco Bradesco by 2.1% in the 1st quarter. Compound Planning Inc. now owns 158,680 shares of the bank's stock valued at $579,000 after acquiring an additional 3,247 shares in the last quarter. Cetera Investment Advisers raised its stake in shares of Banco Bradesco by 16.7% in the first quarter. Cetera Investment Advisers now owns 24,543 shares of the bank's stock worth $90,000 after acquiring an additional 3,519 shares during the last quarter. Plan A Wealth LLC raised its stake in shares of Banco Bradesco by 22.1% in the third quarter. Plan A Wealth LLC now owns 23,327 shares of the bank's stock worth $82,000 after acquiring an additional 4,224 shares during the last quarter. Finally, Inspire Investing LLC lifted its position in shares of Banco Bradesco by 16.9% during the third quarter. Inspire Investing LLC now owns 30,565 shares of the bank's stock worth $108,000 after purchasing an additional 4,408 shares in the last quarter.

Banco Bradesco Company Profile

Banco Bradesco SA is a Brazilian financial services company headquartered in Osasco, São Paulo. Founded in 1943, the bank serves individuals, businesses and institutional clients through a broad network of branches, digital channels and automated banking services.

Bradesco offers traditional banking products and services, including checking and savings accounts, personal and commercial loans, credit and debit cards, payment solutions, foreign exchange and investment products. Through its related businesses, the company also provides insurance, pension and capitalization products, asset management, brokerage and other financial services.

The company primarily serves customers in Brazil and maintains international activities to support corporate and institutional clients, including services related to international banking and trade.

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