Sendas Distribuidora (OTCMKTS:ASAIY) Shares Gap Down - Should You Sell?

Key Points

• Shares gapped down before the open—the stock moved from a $8.94 close to an $8.38 open, last trading at $8.54 and down about 2.9%, with the 50‑day/200‑day SMAs at $8.43/$8.09.
• Zacks upgraded the stock from "strong sell" to "hold" (consensus: Hold), but the company missed quarterly estimates with EPS $0.01 vs. $0.21 expected and revenue $3.85B vs. $3.93B, and shows high leverage (debt/equity 4.32) and a thin net margin (0.64%).

Shares of Sendas Distribuidora S.A. Sponsored ADR (OTCMKTS:ASAIY - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $8.94, but opened at $8.38. Sendas Distribuidora shares last traded at $8.54, with a volume of 1,883 shares trading hands.

Wall Street Analyst Weigh In

Separately, Zacks Research upgraded shares of Sendas Distribuidora from a "strong sell" rating to a "hold" rating in a research note on Thursday, March 12th. Two research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company has a consensus rating of "Hold".

Sendas Distribuidora Stock Down 2.9%

The firm has a market cap of $2.29 billion, a P/E ratio of 26.44 and a beta of 0.80. The stock's 50 day simple moving average is $8.43 and its 200 day simple moving average is $8.09. The company has a debt-to-equity ratio of 4.32, a quick ratio of 0.54 and a current ratio of 1.12.

Sendas Distribuidora (OTCMKTS:ASAIY - Get Free Report) last posted its earnings results on Wednesday, February 11th. The company reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.20). Sendas Distribuidora had a return on equity of 8.94% and a net margin of 0.64%.The firm had revenue of $3.85 billion during the quarter, compared to the consensus estimate of $3.93 billion.

About Sendas Distribuidora

Sendas Distribuidora SA is a Brazilian retail and distribution company that operates in the grocery and consumer goods sector. The company’s core activities include operating retail outlets and managing distribution operations that supply food, beverages, household products and personal-care items to end consumers and commercial customers. Its business model centers on combining in-store retailing with logistics and supply-chain services to move fast‑moving consumer goods across its network.

Product categories handled by Sendas typically include fresh and packaged foods, dairy and frozen goods, beverages, cleaning and household supplies, and health and beauty products.

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