Sendas Distribuidora (OTCMKTS:ASAIY) Trading 9.6% Higher - Still a Buy?

Key Points

• Shares jumped 9.6% to $7.62 on Monday with about 26,670 shares traded, slightly below the stock's average daily volume, after closing at $6.95 previously.
• Analyst sentiment is lukewarm with a consensus rating of Hold after Zacks upgraded to Hold and Citigroup downgraded from strong-buy to Hold.
• The latest quarter missed expectations—EPS $0.01 vs. $0.21 expected and revenue $3.85B vs. $3.93B—while the company shows high leverage (debt-to-equity 4.32) and weak liquidity (quick ratio 0.54), indicating caution despite a $2.04B market cap.

Sendas Distribuidora S.A. Sponsored ADR (OTCMKTS:ASAIY - Get Free Report)'s stock price rose 9.6% on Monday . The company traded as high as $7.62 and last traded at $7.62. Approximately 26,670 shares were traded during mid-day trading, a decline of 5% from the average daily volume of 28,030 shares. The stock had previously closed at $6.95.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Zacks Research raised shares of Sendas Distribuidora from a "strong sell" rating to a "hold" rating in a report on Thursday, March 12th. Citigroup downgraded shares of Sendas Distribuidora from a "strong-buy" rating to a "hold" rating in a research report on Thursday, November 27th. Two investment analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold".

Sendas Distribuidora Stock Performance

The business has a 50-day moving average of $8.16 and a 200 day moving average of $8.18. The company has a debt-to-equity ratio of 4.32, a current ratio of 1.12 and a quick ratio of 0.54. The company has a market cap of $2.04 billion, a PE ratio of 23.56 and a beta of 0.82.

Sendas Distribuidora (OTCMKTS:ASAIY - Get Free Report) last announced 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). The firm had revenue of $3.85 billion during the quarter, compared to analysts' expectations 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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