JBS (NYSE:JBS) Shares Gap Up - Here's What Happened

Key Points

• JBS shares opened 2.5% higher, rising from a $12.02 close to $12.32 and last trading around $12.35, with roughly 812,000 shares changing hands.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $18.42, despite several recent target-price cuts and one downgrade to “Sell.”
• JBS reported quarterly revenue of $23.9 billion, up 13.8% year over year, but earnings of $0.20 per share missed the $0.32 consensus estimate; the company’s CFO also sold 183,501 shares for approximately $2.54 million.

Jbs N.V. (NYSE:JBS - Get Free Report) gapped up prior to trading on Wednesday. The stock had previously closed at $12.02, but opened at $12.32. JBS shares last traded at $12.3480, with a volume of 811,757 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on JBS. Barclays reduced their target price on shares of JBS from $21.00 to $20.00 and set an "overweight" rating on the stock in a report on Thursday, July 16th. UBS Group lifted their price target on shares of JBS from $17.00 to $17.50 and gave the stock a "buy" rating in a report on Monday, August 24th. Wall Street Zen cut shares of JBS from a "hold" rating to a "sell" rating in a research note on Saturday, August 15th. Stephens decreased their price objective on JBS from $18.00 to $17.00 and set an "overweight" rating for the company in a report on Monday, August 17th. Finally, JPMorgan Chase & Co. cut their target price on JBS from $18.00 to $17.50 and set an "overweight" rating on the stock in a report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $18.42.

JBS Trading Up 2.8%

The firm has a market cap of $9.59 billion, a price-to-earnings ratio of 12.10, a price-to-earnings-growth ratio of 2.99 and a beta of -1.44. The company has a debt-to-equity ratio of 2.51, a current ratio of 1.53 and a quick ratio of 0.77. The firm's fifty day moving average is $12.91 and its 200-day moving average is $13.74.

JBS (NYSE:JBS - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The company reported $0.20 earnings per share for the quarter, missing analysts' consensus estimates of $0.32 by ($0.12). JBS had a return on equity of 12.00% and a net margin of 1.22%.The business had revenue of $23.90 billion for the quarter. JBS's quarterly revenue was up 13.8% compared to the same quarter last year. Equities analysts anticipate that Jbs N.V. will post 1.08 earnings per share for the current year.

Insider Activity

In other news, CFO Guilherme Cavalcanti sold 183,501 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $13.85, for a total transaction of $2,541,488.85. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website.

Institutional Investors Weigh In On JBS

A number of hedge funds have recently added to or reduced their stakes in JBS. Arrowstreet Capital Limited Partnership boosted its stake in JBS by 117.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 7,687,775 shares of the company's stock valued at $138,072,000 after purchasing an additional 4,147,304 shares during the last quarter. Assenagon Asset Management S.A. purchased a new stake in shares of JBS in the second quarter worth approximately $21,866,000. Brandes Investment Partners LP bought a new position in shares of JBS in the fourth quarter valued at approximately $24,209,000. Ovata Capital Management Ltd boosted its position in shares of JBS by 1,724.2% during the fourth quarter. Ovata Capital Management Ltd now owns 499,983 shares of the company's stock valued at $7,210,000 after buying an additional 472,575 shares during the last quarter. Finally, SG Americas Securities LLC boosted its position in shares of JBS by 114.4% during the first quarter. SG Americas Securities LLC now owns 746,785 shares of the company's stock valued at $13,412,000 after buying an additional 398,435 shares during the last quarter.

About JBS

JBS SA is a Brazil-based food company focused on the processing and production of animal protein and prepared foods. Its operations include beef, pork, poultry, and lamb processing, as well as the manufacture of value-added products such as frozen and prepared meals, bacon, sausages, deli meats, and other convenience foods. The company also produces leather and other related byproducts.

Founded in 1953 by José Batista Sobrinho in Anápolis, Brazil, JBS has grown from a local cattle-slaughtering business into a multinational food company.

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