Banco Santander Brasil (NYSE:BSBR) Reaches New 52-Week Low - Here's Why

Key Points

• Banco Santander Brasil shares fell 12.9% to a new 52-week low of $4.87, below the $5.55 previous close.
• Analyst sentiment is mostly cautious: the consensus rating is Hold from five analysts, with a $6.10 average price target.
• The bank cut its quarterly dividend to $0.0804 from $0.1045, while insiders sold more than 233,000 shares during the past quarter.

Banco Santander Brasil SA (NYSE:BSBR - Get Free Report)'s share price reached a new 52-week low on Monday. The stock traded as low as $4.87 and last traded at $4.91, with a volume of 379,129 shares changing hands. The stock had previously closed at $5.55.

Analyst Upgrades and Downgrades

A number of research firms recently commented on BSBR. HSBC reaffirmed a "hold" rating and set a $6.20 price objective (down from $7.20) on shares of Banco Santander Brasil in a research note on Tuesday, September 15th. Wall Street Zen lowered shares of Banco Santander Brasil from a "buy" rating to a "hold" rating in a report on Sunday, July 12th. Weiss Ratings raised shares of Banco Santander Brasil from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, October 8th. JPMorgan Chase & Co. lowered Banco Santander Brasil from an "overweight" rating to a "neutral" rating and reduced their price objective for the company from $6.50 to $6.00 in a research report on Thursday, July 30th. Finally, Zacks Research upgraded Banco Santander Brasil from a "strong sell" rating to a "hold" rating in a research report on Tuesday, October 20th. One analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $6.10.

Banco Santander Brasil Trading Down 12.9%

The company has a current ratio of 1.56, a quick ratio of 1.56 and a debt-to-equity ratio of 3.34. The company has a fifty day moving average price of $5.75 and a two-hundred day moving average price of $5.63.

Banco Santander Brasil Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Thursday, October 22nd will be paid a $0.0804 dividend. This is a drop from Banco Santander Brasil's previous quarterly dividend of $0.1045. This represents a $0.32 dividend on an annualized basis and a dividend yield of 6.7%. The ex-dividend date of this dividend is Thursday, October 22nd.

Insider Activity at Banco Santander Brasil

In other Banco Santander Brasil news, insider Leonardo Mendes Cabral sold 20,000 shares of the firm's stock in a transaction that occurred on Thursday, September 24th. The shares were sold at an average price of $5.68, for a total value of $113,600.00. Following the transaction, the insider directly owned 112,571 shares of the company's stock, valued at approximately $639,403.28. This trade represents a 15.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Edmilson Saes sold 50,000 shares of the stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $5.79, for a total transaction of $289,500.00. Following the completion of the sale, the vice president owned 300,203 shares in the company, valued at approximately $1,738,175.37. This trade represents a 14.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 233,438 shares of company stock valued at $1,338,299 over the last quarter. 0.06% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Banco Santander Brasil

A number of large investors have recently made changes to their positions in the company. GAMMA Investing LLC increased its stake in shares of Banco Santander Brasil by 20.9% in the 3rd quarter. GAMMA Investing LLC now owns 22,429 shares of the bank's stock worth $125,000 after purchasing an additional 3,877 shares in the last quarter. Farther Finance Advisors LLC boosted its stake in shares of Banco Santander Brasil by 80.9% in the third quarter. Farther Finance Advisors LLC now owns 4,501 shares of the bank's stock worth $25,000 after acquiring an additional 2,013 shares during the period. QRG Capital Management Inc. purchased a new stake in Banco Santander Brasil during the 2nd quarter valued at approximately $57,000. Engineers Gate Manager LP grew its stake in Banco Santander Brasil by 765.6% during the second quarter. Engineers Gate Manager LP now owns 139,178 shares of the bank's stock valued at $731,000 after acquiring an additional 123,100 shares in the last quarter. Finally, Public Employees Retirement System of Ohio purchased a new stake in Banco Santander Brasil in the 2nd quarter worth $476,000. Institutional investors own 14.53% of the company's stock.

About Banco Santander Brasil

Banco Santander (Brasil) SA is a Brazilian financial institution and a subsidiary of Spain-based Banco Santander. It provides banking and financial services to individuals, small and midsize businesses, corporate clients and institutional customers throughout Brazil.

The company's offerings include checking and savings accounts, consumer and commercial loans, credit and debit cards, mortgages, payroll lending, insurance, investment products, foreign-exchange services, cash management and payment solutions.

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