BB Seguridade Participacoes (OTCMKTS:BBSEY) Shares Gap Down - Should You Sell?

Key Points

• BBSEY shares gapped sharply lower, opening at $6.45 versus a prior close of $8.81, before recovering to $7.54 on volume of 56,722 shares.
• Analyst sentiment remains cautious: three analysts rate the stock Hold and one rates it Sell, giving BBSEY an overall “Reduce” rating; Citigroup recently downgraded it to Sell.
• Despite the share-price weakness, the company exceeded quarterly earnings and revenue estimates, reporting $0.25 EPS versus $0.21 expected and $508.16 million in revenue; it trades at a P/E ratio of 8.44.

BB Seguridade Participacoes SA (OTCMKTS:BBSEY - Get Free Report) gapped down prior to trading on Monday. The stock had previously closed at $8.81, but opened at $6.45. BB Seguridade Participacoes shares last traded at $7.54, with a volume of 56,722 shares.

Analyst Ratings Changes

Several brokerages recently weighed in on BBSEY. Zacks Research raised shares of BB Seguridade Participacoes from a "strong sell" rating to a "hold" rating in a research report on Monday, August 17th. Citigroup cut BB Seguridade Participacoes to a "sell" rating in a research report on Friday, September 11th. Three investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Reduce".

BB Seguridade Participacoes Price Performance

The firm's 50-day moving average is $7.90 and its 200-day moving average is $7.61. The company has a market capitalization of $14.75 billion, a P/E ratio of 8.44 and a beta of 0.39.

BB Seguridade Participacoes (OTCMKTS:BBSEY - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $0.25 earnings per share for the quarter, topping the consensus estimate of $0.21 by $0.04. The business had revenue of $508.16 million for the quarter, compared to the consensus estimate of $489.08 million. BB Seguridade Participacoes had a net margin of 87.94% and a return on equity of 79.22%. As a group, analysts forecast that BB Seguridade Participacoes SA will post 0.87 EPS for the current fiscal year.

BB Seguridade Participacoes Company Profile

BB Seguridade Participações SA is a Brazilian holding company controlled by Banco do Brasil that operates in the insurance, brokerage, private pension and related financial-protection sectors. Through its subsidiaries and strategic partnerships, the company offers products designed for individuals, businesses and rural customers.

Its activities include the distribution and intermediation of insurance products through BB Corretora, as well as participation in companies that provide life, property, rural and other insurance products.

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