Itau Unibanco Holding S.A. (NYSE: ITUB) Loses -53.84% From High. Why That Could Change?


Harding Loevner LP recently announced the acquisition of new stake in Itau Unibanco Holding S.A. (NYSE:ITUB). The institutional investor has increased its shareholding in the Financial company by 108.71% to 201.98 million shares with purchase of 105.2 million shares. This fresh investment now brings its stake to 4.17% valued currently at $1.03 billion. In addition, Invesco Advisers, Inc. raised its holdings by 10.42 million to 88.49 million shares. And Schroder Investment Management Lt.. has lifted its position by 32.38% or 17.3 million shares – to 70.72 million shares.

With over 42.23 million Itau Unibanco Holding S.A. (ITUB) shares trading Monday and a closing price of $4.26 on the day, the dollar volume was approximately $179.9 million. The shares have shown a negative weekly performance of -2.07% and its price on 08/31/20 lost nearly -4.91%. Currently, there are 9.76B common shares owned by the public and among those 5.30B 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: 14 analysts who have offered their price forecasts for ITUB have a consensus price objective of $6.00. The analysts have set the share’s price value over the next 12 months at a high of $7.33 and a low of $4.82 should the stock experience a downside. Incidentally, analysts’ outlook for the Itau Unibanco Holding S.A. stock is 2.80 for the next 12 months. The average price target is 34.26% above its last price level and an upside to the estimated low will see the stock gain 11.62% over that period. But an upside of 41.88% will see the stock hit the forecast high price target while mean target price for the stock is $6.00.

The top 3 mutual fund holders in Itau Unibanco Holding S.A. are Invesco Oppenheimer Developing Ma, Harding Loevner International Equ, and Fidelity Inv. Trust – Emerging Ma. Invesco Oppenheimer Developing Ma owns 77.37 million shares of the company’s stock, all valued at over $394.6 million. The company bought an additional 8.82 million shares recently to bring their total holdings to about 1.60% of the shares outstanding. Harding Loevner International Equ bought 30.96 million shares to see its total holdings expand to 51.03 million shares valued at over $260.26 million and representing 1.05% of the shares outstanding. Fidelity Inv. Trust – Emerging Ma sold -2.52 million shares to bring its total holdings to over 34.89 million shares at a value of $177.94 million. Fidelity Inv. Trust – Emerging Ma now owns shares totaling to 0.72% of the shares outstanding.

Shares of Itau Unibanco Holding S.A. (NYSE: ITUB) opened at $4.40, down -$0.08 from a prior closing price of $4.48. However, the script later closed the day at $4.26, down -4.91%. The company’s stock has a 5-day price change of -2.07% and -11.60% over the past three months. ITUB shares are trading -52.55% year to date (YTD), with the 12-month market performance down to -47.31% lower. It has a 12-month low price of $3.47 and touched a high of $9.23 over the same period. Currently, 42.23 million shares have been traded, compared to an average intraday trading volume of 29.82 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 -6.03%, -12.23%, and -28.64% respectively.

Institutional ownership of Itau Unibanco Holding S.A. (NYSE: ITUB) shares accounts for 22.90% of the company’s 9.76B shares outstanding. Mutual fund holders own 10.06%, while other institutional holders and individual stakeholders account for 11.80% and — respectively.

It has a market capitalization of $39.47B and a beta (3y monthly) value of 0.78. The stock’s trailing 12-month PE ratio is 12.21, while the earnings-per-share (ttm) stands at $0.35. The company has a PEG of 1.31 and the debt-to-equity ratio at 4.72. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.37% over the week and 3.60% over the month.

Analysts forecast that Itau Unibanco Holding S.A. (ITUB) will achieve an EPS of $0.1 for the current quarter, $0.12 for the next quarter and $0.48 for 2021. The lowest estimate earnings-per-share for the quarter is $0.1 while analysts give the company a high EPS estimate of $0.1. Comparatively, EPS for the current quarter was $0.13 a year ago. Earnings per share for the fiscal year are expected to increase by 8.70%, and 21.53% over the next financial year. EPS should shrink at an annualized rate of 9.30% over the next five years, compared to 13.00% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 14 brokerage firm advisors rate Itau Unibanco Holding S.A. (ITUB) as a “Moderate Buy” at a consensus score of 2.80. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 7 of the 14 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the ITUB, a number of firms have released research notes about the stock. Goldman stated their Neutral rating for the stock in a research note on June 15, 2020, with the firm’s price target at. Goldman coverage for the Itau Unibanco Holding S.A. (ITUB) stock in a research note released on April 06, 2020 offered a Buy rating with a price target of. UBS was of a view on April 01, 2020 that the stock is Buy, while UBS gave the stock Neutral rating on November 21, 2019, issuing a price target of. JP Morgan on their part issued Neutral rating on November 19, 2019.


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