Cosan (NYSE:CSAN) Shares Gap Up - Time to Buy?

Key Points

• Cosan shares opened higher, rising from a prior close of $2.82 to $2.94 before trading at approximately $2.89.
• Analyst sentiment remains cautious: four analysts rate the stock Hold and two rate it Sell, resulting in a consensus “Reduce” rating and an average price target of $3.85.
• Cosan’s latest results were weak, with a $0.06-per-share loss versus expectations for a $0.01 profit, alongside a negative net margin and negative return on equity.

Cosan S.A. Sponsored ADR (NYSE:CSAN - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $2.82, but opened at $2.94. Cosan shares last traded at $2.8850, with a volume of 179,898 shares traded.

Wall Street Analysts Forecast Growth

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

Cosan Price Performance

The company has a debt-to-equity ratio of 2.12, a quick ratio of 1.76 and a current ratio of 1.87. The company has a market capitalization of $2.87 billion, a PE ratio of -1.34 and a beta of 0.70. The company's 50-day simple moving average is $2.90 and its 200-day simple moving average is $3.59.

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

Institutional Trading of Cosan

Institutional investors and hedge funds have recently made changes to their positions in the stock. SmartHarvest Portfolios LLC acquired a new position in shares of Cosan in the first quarter valued at approximately $46,000. Caitong International Asset Management Co. Ltd acquired a new stake in Cosan during the fourth quarter worth approximately $46,000. Royal Bank of Canada boosted its position in Cosan by 3,266.6% during the first quarter. Royal Bank of Canada now owns 12,389 shares of the company's stock worth $51,000 after acquiring an additional 12,021 shares during the last quarter. Blue Trust Inc. grew its stake in Cosan by 12,141.9% in the 1st 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. Finally, Clear Harbor Asset Management LLC purchased a new stake in Cosan in the 4th quarter worth approximately $53,000.

Cosan Company Profile

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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