Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) Shares Gap Down - Here's Why

Key Points

• Petrobras shares gapped down: PBR opened at $17.60 after closing at $18.28, then traded around $18.07.
• Analyst sentiment remains positive: The stock has a consensus “Buy” rating and a $20.97 price target, with several firms recently upgrading their ratings or raising targets.
• Quarterly results were mixed: Petrobras beat earnings expectations with EPS of $1.44 versus $1.38 estimated, but revenue of $32.96 billion came in slightly below consensus.

Shares of Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR - Get Free Report) gapped down prior to trading on Wednesday. The stock had previously closed at $18.28, but opened at $17.60. Petroleo Brasileiro S.A.- Petrobras shares last traded at $18.0660, with a volume of 6,884,763 shares traded.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on PBR. Weiss Ratings raised shares of Petroleo Brasileiro S.A.- Petrobras from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, October 9th. Wall Street Zen raised shares of Petroleo Brasileiro S.A.- Petrobras from a "buy" rating to a "strong-buy" rating in a report on Saturday, October 31st. Zacks Research upgraded Petroleo Brasileiro S.A.- Petrobras from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 30th. JPMorgan Chase & Co. upped their target price on Petroleo Brasileiro S.A.- Petrobras from $23.00 to $24.00 and gave the stock an "overweight" rating in a research note on Tuesday, September 1st. Finally, UBS Group raised their price target on Petroleo Brasileiro S.A.- Petrobras from $22.00 to $23.00 and gave the company a "buy" rating in a report on Wednesday, September 23rd. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus price target of $20.97.

Petroleo Brasileiro S.A.- Petrobras Stock Down 1.4%

The stock has a 50 day moving average price of $22.11 and a 200-day moving average price of $19.27. The stock has a market capitalization of $116.19 billion, a P/E ratio of 4.56, a PEG ratio of 0.37 and a beta of 0.33. The company has a debt-to-equity ratio of 0.64, a current ratio of 0.85 and a quick ratio of 0.58.

Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR - Get Free Report) last released its quarterly earnings data on Tuesday, November 10th. The oil and gas exploration company reported $1.44 EPS for the quarter, topping the consensus estimate of $1.38 by $0.06. Petroleo Brasileiro S.A.- Petrobras had a return on equity of 30.61% and a net margin of 24.52%. The firm had revenue of $32.96 billion for the quarter, compared to the consensus estimate of $33.10 billion. As a group, research analysts expect that Petroleo Brasileiro S.A.- Petrobras will post 4.67 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in PBR. Artemis Investment Management LLP boosted its position in Petroleo Brasileiro S.A.- Petrobras by 4.2% during the 3rd quarter. Artemis Investment Management LLP now owns 6,643,028 shares of the oil and gas exploration company's stock valued at $138,640,000 after buying an additional 270,422 shares during the period. Oaktree Capital Management LP bought a new position in shares of Petroleo Brasileiro S.A.- Petrobras during the first quarter valued at about $126,355,000. Carrhae Capital LLP purchased a new stake in shares of Petroleo Brasileiro S.A.- Petrobras during the second quarter worth about $87,456,000. RWC Asset Advisors US LLC boosted its holdings in shares of Petroleo Brasileiro S.A.- Petrobras by 17.7% during the third quarter. RWC Asset Advisors US LLC now owns 4,409,205 shares of the oil and gas exploration company's stock worth $92,020,000 after purchasing an additional 662,712 shares during the period. Finally, DJE Kapital AG purchased a new stake in shares of Petroleo Brasileiro S.A.- Petrobras during the first quarter worth about $65,428,000.

Petroleo Brasileiro S.A.- Petrobras Company Profile

Petróleo Brasileiro S.A., known as Petrobras, is an integrated energy company headquartered in Rio de Janeiro, Brazil. Founded in 1953, it is controlled by the Brazilian government and has publicly traded shares, including American depositary shares listed in the United States. Petrobras's core business is exploring for and producing oil and natural gas, with a significant focus on offshore and deepwater fields, including Brazil's pre-salt basins. The company also operates in refining, transportation, and the sale of oil, fuels, natural gas, and related energy products.

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