Itau Unibanco Holding S.A. (ITUB): Not A Time To Panic Nor Freeze


Harding Loevner LP has recently announced that it has increased stake in Itau Unibanco Holding S.A. (NYSE:ITUB) by 108.71%. After grabbing 201.98 million shares, the institutional investor is now in possession of 105.2 million shares of the Financial Company. The new investment brought the stake of investor firm to 4.17% having worth around $1.03 billion. Moreover, Invesco Advisers, Inc. increased its share by 10.42 million to have a control over 88.49 million shares. And Schroder Investment Management Lt.. raised its holdings to 17.3 million shares by acquiring 70.72 million shares or 1.46% of the stake.

Itau Unibanco Holding S.A. (ITUB) concluded trading on 08/27/20 at a closing price of $4.30, with 27.35 million shares of worth about $117.6 million changed hands on the day. Weekly performance of the stock remained negative as price took a plunge of -0.23% during that period and on Thursday the price saw a gain of about 1.90%. Currently the company’s common shares owned by public are about 9.76B shares, out of which, 5.30B shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 14 analysts are covering the ITUB stock and their offered price forecasts bring an average price target of $6.00. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $7.33 and could fall to a lowest price of $4.82. Analysts also issued an outlook of 2.80 for the Itau Unibanco Holding S.A. stock for next 12 months. The stock’s current price level is 33.64% above of average price target set by the analysts, while a rise to estimated low would result in gain of 10.79 for the stock. However, touching the estimated high of $7.33 would mean a gain of 41.34% for the stock.

Invesco Oppenheimer Developing Ma, Harding Loevner International Equ, and Fidelity Inv. Trust – Emerging Ma are the top 3 mutual funds which are holding stakes in Itau Unibanco Holding S.A. Invesco Oppenheimer Developing Ma is currently holding 77.37 million shares of worth totaling $394.6 million. The company recently came buying 8.82 million shares which brought its stake up to 1.60% of the company’s outstanding shares. Harding Loevner International Equ bought 30.96 million shares, after which its hold over company’s outstanding shares expand to 1.05%, leaving 51.03 million shares with the mutual fund that have a worth of about $260.26 million. Fidelity Inv. Trust – Emerging Ma, after selling 34.89 million shares, have now control over 0.72% of the stake in the company. It holds -2.52 million shares of worth $177.94 million.

Itau Unibanco Holding S.A. (NYSE: ITUB) started trading at $4.29, above $0.07 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $4.30, or with a gain of 1.90%. Stock saw a price change of -0.23% in past 5 days and over the past one month there was a price change of -20.92%. Year-to-date (YTD), ITUB shares are showing a performance of -52.11% which decreased to -46.29% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $3.47 but also hit the highest price of $9.23 during that period. While comparing its average daily trading volume of 28.46 million shares, we see that about 27.35 million changed hands on the day. The stock is currently trading -6.87% below its 20-day simple moving average (SMA20), while that difference is down -11.89% for SMA50 and it goes to -28.46% lower than SMA200.

Harding Loevner LP acquired 201.98 million shares of Itau Unibanco Holding S.A. having value of about $1.03 billion. Data submitted at the U.S SEC by Harding Loevner LP revealed that the firm now holds 105.2 million shares in the company valued at close to $452375970.2, or have control over 108.71% stake in the company. Itau Unibanco Holding S.A. (NYSE: ITUB) currently have 9.76B outstanding shares and institutions hold larger chunk of about 22.90% of that. Holding of mutual funds in the company is about 10.07% while other institutional holders and individual stake holders have control over 11.78% and — of the stake respectively.

The stock has a current market capitalization of $41.96B and its 3Y-monthly beta is at 0.85. PE ratio of stock for trailing 12 months is 12.32, while it has posted earnings per share of $0.35 in the same period. Its PEG reads 1.32 while making debt-to-equity ratio of 4.72. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for ITUB, volatility over the week remained 2.93% while standing at 3.65% over the month.

Analysts are in expectations that Itau Unibanco Holding S.A. (ITUB) stock would likely to be making an EPS of $0.1 in the current quarter, while forecast for next quarter ESPS is $0.12 and it is $0.49 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.1 which is $0.1 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.13 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 8.70% while it is estimated to increase by 21.29% in next year. EPS is likely to shrink at an annualized rate of 9.30% for next 5-years, compared to annual growth of 13.00% made by the stock over the past 5-years.

Analysts at 14 brokerage firms have issued recommendations for the Itau Unibanco Holding S.A. (ITUB)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.80. Out of those 14 Wall Street analysts, 7 recommended a “Buy” rating, while 7 were in favor recommending the stock as a “Hold” and 0 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Goldman on June 15, 2020 offering a Neutral rating for the stock and assigned a target price of to it. Coverage by Goldman stated Itau Unibanco Holding S.A. (ITUB) stock as a Buy in their note to investors on April 06, 2020, suggesting a price target of for the stock. On April 01, 2020, UBS Upgrade their recommendations, while on November 21, 2019, UBS Downgrade their ratings for the stock with a price target of. Stock get a Neutral rating from JP Morgan on November 19, 2019.


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