Grupo Financiero Galicia S.A. (GGAL) Testing Investors’ Patience Right Now


    SSgA Funds Management, Inc. recently announced the acquisition of new stake in Grupo Financiero Galicia S.A. (NASDAQ:GGAL). The institutional investor has increased its shareholding in the Financial company by 4.98% to 3.51 million shares with purchase of 0.17 million shares. This fresh investment now brings its stake to 3.06% valued currently at $34.01 million. In addition, BlackRock Investment Management (. raised its holdings by 0.64 million to 2.29 million shares. And Acadian Asset Management LLC has lifted its position by 76.87% or 0.5 million shares – to 1.14 million shares.

    With over 1.21 million Grupo Financiero Galicia S.A. (GGAL) shares trading Thursday and a closing price of $12.12 on the day, the dollar volume was approximately $14.62 million. The shares have shown a negative weekly performance of -2.81% and its price on 07/30/20 lost nearly -1.62%. Currently, there are 142.68M common shares owned by the public and among those 74.78M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 9 analysts who have offered their price forecasts for GGAL have a consensus price objective of $14.86. The analysts have set the share’s price value over the next 12 months at a high of $39.12 and a low of $3.36 should the stock experience a downside. Incidentally, analysts’ outlook for the Grupo Financiero Galicia S.A. stock is 3.80 for the next 12 months. The average price target is 4.34% above its last price level and an upside to the estimated low will see the stock lose -260.71% over that period. But an upside of 69.02% will see the stock hit the forecast high price target while mean target price for the stock is $11.00.

    The top 3 mutual fund holders in Grupo Financiero Galicia S.A. are BlackRock Strategic Fds. – Emergi, Invesco International Dividend Ac, and iShares Core MSCI Emerging Market. BlackRock Strategic Fds. – Emergi owns 1.42 million shares of the company’s stock, all valued at over $13.78 million. The company bought an additional 0.24 million shares recently to bring their total holdings to about 1.24% of the shares outstanding. iShares Core MSCI Emerging Market now owns shares totaling to 0.73% of the shares outstanding.

    Shares of Grupo Financiero Galicia S.A. (NASDAQ: GGAL) opened at $12.00, down -$0.32 from a prior closing price of $12.32. However, the script later closed the day at $12.12, down -1.62%. The company’s stock has a 5-day price change of -2.81% and 70.22% over the past three months. GGAL shares are trading -25.32% year to date (YTD), with the 12-month market performance down to -67.01% lower. It has a 12-month low price of $5.66 and touched a high of $38.81 over the same period. Currently, 1.21 million shares have been traded, compared to an average intraday trading volume of 1.92 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 6.34%, 15.63%, and 6.29% respectively.

    Institutional ownership of Grupo Financiero Galicia S.A. (NASDAQ: GGAL) shares accounts for 23.20% of the company’s 142.68M shares outstanding. Mutual fund holders own 15.43%, while other institutional holders and individual stakeholders account for 7.41% and — respectively.

    It has a market capitalization of $2.22B and a beta (3y monthly) value of 1.62. The stock’s trailing 12-month PE ratio is 3.04, while the earnings-per-share (ttm) stands at $3.99. The company has a PEG of 0.06 and the debt-to-equity ratio at 0.32. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.74% over the week and 6.53% over the month.

    Analysts forecast that Grupo Financiero Galicia S.A. (GGAL) will achieve an EPS of $1 for the current quarter, $0.96 for the next quarter and $3.75 for 2021. The lowest estimate earnings-per-share for the quarter is $1 while analysts give the company a high EPS estimate of $1. Comparatively, EPS for the current quarter was $1.85 a year ago. Earnings per share for the fiscal year are expected to increase by 189.10%, and 3.59% over the next financial year. EPS should shrink at an annualized rate of 46.94% over the next five years, compared to 62.50% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 9 brokerage firm advisors rate Grupo Financiero Galicia S.A. (GGAL) as a “Hold” at a consensus score of 3.80. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 3 of the 9 advise that investors “hold,” and 3 rated it as a “Sell.”

    Looking at the support for the GGAL, a number of firms have released research notes about the stock. HSBC Securities stated their Reduce rating for the stock in a research note on July 21, 2020, with the firm’s price target at. Citigroup coverage for the Grupo Financiero Galicia S.A. (GGAL) stock in a research note released on May 28, 2020 offered a Sell rating with a price target of. Scotiabank was of a view on January 17, 2020 that the stock is Sector Perform, while Credit Suisse gave the stock Underperform rating on October 29, 2019, issuing a price target of. JP Morgan on their part issued Neutral rating on August 14, 2019.


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