Banco Santander Brasil (NYSE:BSBR) Sees Large Volume Increase - Time to Buy?

Key Points

• Trading activity surged: Banco Santander Brasil shares traded 4.36 million shares, up 125% from the prior session, and closed at $5.715.
• Analyst sentiment is cautious: Ratings include four Holds and two Sells, producing a consensus “Reduce” recommendation and a $6.10 target price.
• Income appeal contrasts with insider selling: The company pays an annualized $0.42 dividend, yielding approximately 7.3%, while insiders sold 233,438 shares worth about $1.34 million over the past three months.

Banco Santander Brasil SA (NYSE:BSBR - Get Free Report) shares saw unusually-high trading volume on Monday. 4,363,301 shares changed hands during trading, an increase of 125% from the previous session's volume of 1,943,415 shares. The stock last traded at $5.7150 and had previously closed at $5.40.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on BSBR shares. HSBC reissued a "hold" rating and issued a $6.20 price target (down from $7.20) on shares of Banco Santander Brasil in a report on Tuesday, September 15th. 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. Weiss Ratings upgraded shares of Banco Santander Brasil from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, July 31st. JPMorgan Chase & Co. downgraded shares of Banco Santander Brasil from an "overweight" rating to a "neutral" rating and decreased their price objective for the stock from $6.50 to $6.00 in a report on Thursday, July 30th. Finally, Zacks Research downgraded shares of Banco Santander Brasil from a "hold" rating to a "strong sell" rating in a research report on Friday, July 3rd. Four equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $6.10.

Banco Santander Brasil Price Performance

The company has a fifty day simple moving average of $5.73 and a two-hundred day simple moving average of $5.65. The company has a quick ratio of 1.56, a current ratio of 1.56 and a debt-to-equity ratio of 3.34.

Banco Santander Brasil Announces Dividend

The firm 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 yield of 7.3%. The ex-dividend date was Thursday, July 30th.

Insider Activity

In related news, insider Robson De Souza Rezende sold 39,874 shares of the stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $5.70, for a total transaction of $227,281.80. Following the transaction, the insider directly owned 31,003 shares in the company, valued at approximately $176,717.10. This represents a 56.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, VP Edmilson Saes sold 50,000 shares of the firm's stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $5.79, for a total value of $289,500.00. Following the completion of the sale, the vice president directly owned 300,203 shares in the company, valued at approximately $1,738,175.37. The trade was a 14.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 233,438 shares of company stock valued at $1,338,299 in the last three months. Company insiders own 0.06% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Alpine Global Management LLC purchased a new stake in Banco Santander Brasil in the fourth quarter valued at approximately $4,735,000. Dimensional Fund Advisors LP raised its stake in Banco Santander Brasil by 43.5% during the first quarter. Dimensional Fund Advisors LP now owns 221,909 shares of the bank's stock worth $1,316,000 after purchasing an additional 67,224 shares during the period. Engineers Gate Manager LP boosted its holdings in shares of Banco Santander Brasil by 765.6% in the 2nd quarter. Engineers Gate Manager LP now owns 139,178 shares of the bank's stock valued at $731,000 after purchasing an additional 123,100 shares during the last quarter. SPX Gestao de Recursos Ltda boosted its holdings in shares of Banco Santander Brasil by 58.9% in the 1st quarter. SPX Gestao de Recursos Ltda now owns 86,883 shares of the bank's stock valued at $515,000 after purchasing an additional 32,189 shares during the last quarter. Finally, Public Employees Retirement System of Ohio grew its stake in shares of Banco Santander Brasil by 9.4% during the 1st quarter. Public Employees Retirement System of Ohio now owns 81,609 shares of the bank's stock valued at $484,000 after buying an additional 6,982 shares during the period. 14.53% of the stock is currently owned by hedge funds and other institutional investors.

Banco Santander Brasil Company Profile

Banco Santander (Brasil) SA is a Brazilian financial institution and a subsidiary of Spain-based Banco Santander. Headquartered in São Paulo, the bank serves individuals, small and midsize businesses, corporations, and institutional clients throughout Brazil.

The company provides retail and commercial banking services, including checking and savings accounts, consumer and business lending, credit and debit cards, mortgages, payment solutions, and digital banking. Its broader platform also includes corporate and investment banking, private banking, asset management, insurance, and other financial services.

Santander Brasil's operations were built in part through the expansion of Banco Santander in Brazil and the acquisition of Banco do Estado de São Paulo (Banespa) in 2000.

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