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

Key Points

• Gap down: Shares opened sharply lower after the prior close ($10.35 → $9.81) and last traded around $9.67 on light volume (3,752 shares).
• Analyst outlook: Zacks upgraded the stock from "strong sell" to "hold," and the consensus rating from available analysts is currently "Hold."
• Weak quarter and leverage: Sendas missed estimates with Q EPS of $0.01 vs. $0.21 expected and revenue of $3.85B vs. $3.93B, and shows high leverage (debt-to-equity 4.32) with a slim net margin (0.64%).

Sendas Distribuidora S.A. Sponsored ADR (OTCMKTS:ASAIY - Get Free Report) shares gapped down prior to trading on Thursday . The stock had previously closed at $10.35, but opened at $9.81. Sendas Distribuidora shares last traded at $9.6650, with a volume of 3,752 shares.

Analyst Ratings Changes

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

Sendas Distribuidora Price Performance

The stock has a market capitalization of $2.59 billion, a price-to-earnings ratio of 29.84 and a beta of 0.80. The company has a current ratio of 1.12, a quick ratio of 0.54 and a debt-to-equity ratio of 4.32. The stock has a 50-day simple moving average of $8.61 and a 200 day simple moving average of $8.11.

Sendas Distribuidora (OTCMKTS:ASAIY - Get Free Report) last announced its quarterly earnings data on Wednesday, February 11th. The company reported $0.01 EPS for the quarter, missing analysts' consensus estimates of $0.21 by ($0.20). Sendas Distribuidora had a return on equity of 8.94% and a net margin of 0.64%.The business had revenue of $3.85 billion for the quarter, compared to analyst estimates of $3.93 billion.

Sendas Distribuidora Company Profile

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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