Banco Bradesco (NYSE:BBD) Share Price Breaks Below 200-Day Moving Average Following Weak Earnings

Key Points

• Banco Bradesco shares fell below their 200-day moving average, reaching $2.74 and last trading at $2.925 after the bank reported weaker-than-expected quarterly results.
• The bank reported EPS of $0.12, below the $0.13 consensus estimate, while revenue of $6.32 billion significantly missed the $7.52 billion forecast.
• Bradesco increased its monthly dividend to $0.0038 per share, while analysts maintained a generally positive outlook with a “Moderate Buy” consensus rating and a $4.05 price target.

Banco Bradesco SA (NYSE:BBD - Get Free Report) shares passed below its 200-day moving average during trading on Monday after the company announced weaker than expected quarterly earnings. The stock has a 200-day moving average of $3.67 and traded as low as $2.74. Banco Bradesco shares last traded at $2.9250, with a volume of 204,163,320 shares.

The bank reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.13 by ($0.01). Banco Bradesco had a return on equity of 15.51% and a net margin of 12.58%. The company had revenue of $6.32 billion during the quarter, compared to the consensus estimate of $7.52 billion.

Banco Bradesco Increases Dividend

The business also recently announced a monthly dividend, which will be paid on Friday, December 11th. Shareholders of record on Thursday, November 5th will be paid a $0.0038 dividend. The ex-dividend date is Thursday, November 5th. This is a positive change from Banco Bradesco's previous monthly dividend of $0.0037. This represents a $0.05 dividend on an annualized basis and a yield of 1.6%. Banco Bradesco's dividend payout ratio (DPR) is 43.48%.

Analyst Ratings Changes

Several equities analysts have recently issued reports on BBD shares. The Goldman Sachs Group reissued a "neutral" rating and set a $4.20 price target on shares of Banco Bradesco in a report on Friday, October 9th. Wall Street Zen raised shares of Banco Bradesco to a "hold" rating in a report on Saturday, October 17th. Weiss Ratings raised shares of Banco Bradesco from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, October 8th. HSBC downgraded shares of Banco Bradesco from a "buy" rating to a "hold" rating and set a $3.90 price objective on the stock. in a research report on Thursday, October 8th. Finally, Bradesco Corretora raised shares of Banco Bradesco from a "neutral" rating to an "overweight" rating in a research note on Tuesday, October 6th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $4.05.

Institutional Trading of Banco Bradesco

Large investors have recently added to or reduced their stakes in the business. Inspire Investing LLC raised its stake in Banco Bradesco by 16.9% during the 3rd quarter. Inspire Investing LLC now owns 30,565 shares of the bank's stock valued at $108,000 after acquiring an additional 4,408 shares in the last quarter. Net Worth Advisory Group grew its stake in shares of Banco Bradesco by 23.5% in the third quarter. Net Worth Advisory Group now owns 91,190 shares of the bank's stock worth $320,000 after purchasing an additional 17,342 shares in the last quarter. Global Strategic Management Inc. acquired a new position in shares of Banco Bradesco during the third quarter valued at $221,000. Euro Pacific Asset Management LLC increased its holdings in shares of Banco Bradesco by 3.2% during the third quarter. Euro Pacific Asset Management LLC now owns 1,136,944 shares of the bank's stock valued at $3,742,000 after purchasing an additional 35,164 shares during the period. Finally, Plan A Wealth LLC increased its holdings in shares of Banco Bradesco by 22.1% during the third quarter. Plan A Wealth LLC now owns 23,327 shares of the bank's stock valued at $82,000 after purchasing an additional 4,224 shares during the period.

Banco Bradesco Price Performance

The business has a fifty day moving average price of $3.61 and a 200 day moving average price of $3.67. The company has a debt-to-equity ratio of 2.93, a current ratio of 1.48 and a quick ratio of 1.48. The company has a market capitalization of $31.00 billion, a price-to-earnings ratio of 6.36, a price-to-earnings-growth ratio of 0.72 and a beta of 0.46.

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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