Cosan (NYSE:CSAN) Shares Gap Down - What's Next?

Key Points

• Cosan shares opened lower at $2.90 versus the prior close of $2.99 and last traded near $2.985, with the stock down about 2.2%.
• Analyst sentiment remains cautious: the stock carries an average “Reduce” rating, with four Hold ratings and two Sell ratings, and an average price target of $3.85.
• Cosan reported a quarterly loss of $0.06 per share, missing the $0.01 consensus estimate, while posting $2.08 billion in revenue. Analysts expect a full-year loss of approximately $0.27 per share.

Cosan S.A. Sponsored ADR (NYSE:CSAN - Get Free Report) shares gapped down before the market opened on Wednesday . The stock had previously closed at $2.99, but opened at $2.90. Cosan shares last traded at $2.9850, with a volume of 575,530 shares.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the company. Jefferies Financial Group lowered Cosan to a "hold" rating in a report on Tuesday, May 26th. HSBC lowered shares of Cosan from a "hold" rating to a "reduce" rating and cut their price objective for the company from $5.00 to $3.20 in a research report on Tuesday, May 26th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Cosan in a research note on Tuesday, June 9th. Zacks Research raised shares of Cosan to a "hold" rating in a research report on Thursday, June 18th. Finally, Citigroup upgraded shares of Cosan to a "hold" rating in a research note on Monday, June 29th. Four investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average target price of $3.85.

Cosan Trading Down 2.2%

The company's fifty day moving average is $2.91 and its 200-day moving average is $3.56. The company has a current ratio of 1.87, a quick ratio of 1.76 and a debt-to-equity ratio of 2.12. The firm has a market capitalization of $2.90 billion, a P/E ratio of -1.36 and a beta of 0.71.

Cosan (NYSE:CSAN - Get Free Report) last released its earnings results on Saturday, August 15th. The company reported ($0.06) earnings per share for the quarter, missing analysts' consensus estimates of $0.01 by ($0.07). The firm had revenue of $2.08 billion for the quarter, compared to analyst estimates of $996.01 million. Cosan had a negative return on equity of 12.58% and a negative net margin of 21.83%. As a group, sell-side analysts anticipate that Cosan S.A. Sponsored ADR will post -0.27 earnings per share for the current fiscal year.

Institutional Trading of Cosan

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Royal Bank of Canada increased its position in Cosan by 3,266.6% in the 1st quarter. Royal Bank of Canada now owns 12,389 shares of the company's stock worth $51,000 after buying an additional 12,021 shares during the period. Barometer Capital Management Inc. grew its stake in shares of Cosan by 1,839.0% in the first quarter. Barometer Capital Management Inc. now owns 171,600 shares of the company's stock worth $707,000 after acquiring an additional 162,750 shares during the last quarter. Patriot Financial Group Insurance Agency LLC increased its position in Cosan by 115.3% during the first quarter. Patriot Financial Group Insurance Agency LLC now owns 176,680 shares of the company's stock worth $728,000 after acquiring an additional 94,605 shares during the period. SmartHarvest Portfolios LLC bought a new position in Cosan during the first quarter worth $46,000. Finally, Blue Trust Inc. increased its position in Cosan by 12,141.9% during the first quarter. Blue Trust Inc. now owns 12,854 shares of the company's stock worth $53,000 after acquiring an additional 12,749 shares during the period.

About Cosan

Cosan Limited NYSE: CSAN is a Brazilian diversified energy and logistics group focused on agribusiness, fuels, and infrastructure. Its core activities include the cultivation of sugarcane, production of ethanol and sugar, generation of bioelectricity from bagasse, and distribution of fuels under the Raízen joint venture with Shell. Through its subsidiary Moove, Cosan is a leading global producer of base oils and lubricants, while Comgás serves as one of Brazil's largest natural gas distributors.

Founded in 1936 in the state of São Paulo, Cosan has grown through organic expansion and strategic acquisitions.

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