Itau Unibanco Holding S.A. ADR (NYSE: ITUB)’s stock price has increased by 3.11 compared to its previous closing price of 6.11. However, the company has seen a 4.13% increase in its stock price over the last five trading sessions. Seeking Alpha reported 2024-04-18 that Itaú is the largest bank in Latin America, and is modernizing to face the competition generated by fintechs, such as Nu Holdings. It is worth remembering that banking operations in Brazil are complex, and even with competition from fintechs, Itaú has more than 100 years and a extensive know-how to operate credit. The company trades at a low P/E multiple of 7.5x, with expectations of excellent results and good dividends in 2024.
Is It Worth Investing in Itau Unibanco Holding S.A. ADR (NYSE: ITUB) Right Now?
The price-to-earnings ratio for Itau Unibanco Holding S.A. ADR (NYSE: ITUB) is 9.36x, which is above its average ratio. Moreover, the 36-month beta value for ITUB is 0.93. Analysts have varying opinions on the stock, with 1 analysts rating it as a “buy,” 1 as “overweight,” 4 as “hold,” and 1 as “sell.”
The public float for ITUB is 4.82B and currently, short sellers hold a 0.54% of that float. On April 29, 2024, ITUB’s average trading volume was 17.60M shares.
ITUB’s Market Performance
The stock of Itau Unibanco Holding S.A. ADR (ITUB) has seen a 4.13% increase in the past week, with a -9.18% drop in the past month, and a -4.29% fall in the past quarter. The volatility ratio for the week is 2.23%, and the volatility levels for the past 30 days are at 2.20% for ITUB. The simple moving average for the last 20 days is -1.00% for ITUB stock, with a simple moving average of 3.48% for the last 200 days.
Analysts’ Opinion of ITUB
Jefferies gave a rating of “Hold” to ITUB, setting the target price at $6.10 in the report published on October 16th of the previous year.
ITUB Trading at -5.48% from the 50-Day Moving Average
After a stumble in the market that brought ITUB to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.63% of loss for the given period.
Volatility was left at 2.20%, however, over the last 30 days, the volatility rate increased by 2.23%, as shares sank -9.09% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -8.16% lower at present.
During the last 5 trading sessions, ITUB rose by +4.13%, which changed the moving average for the period of 200-days by +8.25% in comparison to the 20-day moving average, which settled at $6.33. In addition, Itau Unibanco Holding S.A. ADR saw -8.56% in overturn over a single year, with a tendency to cut further losses.
Stock Fundamentals for ITUB
Current profitability levels for the company are sitting at:
- 0.4 for the present operating margin
- 1.0 for the gross margin
The net margin for Itau Unibanco Holding S.A. ADR stands at 0.17. The total capital return value is set at 0.05. Equity return is now at value 18.71, with 1.37 for asset returns.
Based on Itau Unibanco Holding S.A. ADR (ITUB), the company’s capital structure generated 0.81 points at debt to capital in total, while cash flow to debt ratio is standing at 0.19. The debt to equity ratio resting at 4.3. The interest coverage ratio of the stock is 0.59.
Currently, EBITDA for the company is -2.6 billion with net debt to EBITDA at 10.78. When we switch over and look at the enterprise to sales, we see a ratio of 5.4. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.73.
Conclusion
To wrap up, the performance of Itau Unibanco Holding S.A. ADR (ITUB) has been mixed in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
