Sendas Distribuidora (OTCMKTS:ASAIY) Shares Gap Up - What's Next?

Key Points

• Shares gapped up pre-market from $6.95 to an open of $7.54 but traded lightly (468 shares) and remain below the 50- and 200-day moving averages of $8.17.
• Analyst sentiment has shifted to a consensus Hold rating after Zacks upgraded from "strong sell" and Citigroup cut from "strong buy."
• The latest quarter showed a notable earnings miss—EPS of $0.01 vs. $0.21 expected and revenue of $3.85B vs. $3.93B—while the company carries high leverage (debt-to-equity 4.32).

Sendas Distribuidora S.A. Sponsored ADR (OTCMKTS:ASAIY - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $6.95, but opened at $7.54. Sendas Distribuidora shares last traded at $7.54, with a volume of 468 shares.

Wall Street Analysts Forecast Growth

ASAIY has been the topic of a number of recent analyst reports. Zacks Research upgraded shares of Sendas Distribuidora from a "strong sell" rating to a "hold" rating in a research note on Thursday, March 12th. Citigroup cut Sendas Distribuidora from a "strong-buy" rating to a "hold" rating in a research note on Thursday, November 27th. 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 Stock Down 1.1%

The company has a market capitalization of $2.02 billion, a price-to-earnings ratio of 23.31 and a beta of 0.82. The company has a quick ratio of 0.54, a current ratio of 1.12 and a debt-to-equity ratio of 4.32. The business has a 50-day moving average price of $8.17 and a 200-day moving average price of $8.17.

Sendas Distribuidora (OTCMKTS:ASAIY - Get Free Report) last posted its quarterly earnings data 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). The company had revenue of $3.85 billion for the quarter, compared to analyst estimates of $3.93 billion. Sendas Distribuidora had a return on equity of 8.94% and a net margin of 0.64%.

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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