The stock of Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE:SBS) is now priced at $9.78 and the shares are -0.52 points down or -5.05% lower compared to its previous closing price of $10.3. The stock had 1.148 million contracts set over the past session. SBS shares’ daily volume is compared to its average trading volume at 1.536 million shares. However, it has a float of 338 million and although its performance was -8.43% over the week, it’s one to watch. Analysts have given the SBS stock a yearly average price target of $12.52 per share. It means the stock’s upside potential is 28.02% with the SBS share price recently placing at $9.7 to $10.23. However, some brokerage firms have priced the stock below the average, including one that has called $10.32.
The shorts are running away from the Companhia de Saneamento Basico do Estado de Sao Paulo stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the SBS shares have declined. Short interest in the stock represents just 0.7% of its float, but the volume has dropped by 0.
In the last trading session, Companhia de Saneamento Basico do Estado de Sao Paulo (NYSE:SBS) dropped by -$0.9 over the week and lost -$1.83 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $15.4. The stock recorded its established 52-week high on 01/28/20.
Since 03/23/20, the stock has traded to a low of $5.54 at 82.53%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.1. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Companhia de Saneamento Basico do Estado de Sao Paulo’s two-week RSI is 31.94. This suggests that the stock is neutral at the moment and that SBS shares’ price movement remains stable. The stochastic readings are equally revealing at 11.32% meaning the SBS share price is currently in overbought territory.
The technical chart shows that the SBS stock will likely settle at between $10.11 and $10.43 per share. However, if the stock dips below $9.58, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $9.37.
Currently, the stock is trading in the red of MACD, with a reading of -0.37. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at JP Morgan cut their recommendation for SBS from Overweight to Neutral in April 06 review. Goldman analysts see the stock as a Neutral in a flash note released to investors on November 14 initiating covering the stock. Citigroup seeing the stock struggling downgraded it from Neutral to Sell on January 16.
The average rating for the SBS equity is 2 and is currently gathering a bullish momentum. Of 1 analysts tracking Companhia de Saneamento Basico do Estado de Sao Paulo polled by Reuters, 0 rated SBS as a hold. The remaining 1 analysts were split evenly. However, the split wasn’t equal as a majority (1) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
The stocks P/S ratio currently stands at 17.4 below the group’s average of 33. Companhia de Saneamento Basico do Estado de Sao Paulo has its P/E ratio at 1.7, which means that the stock is currently trading at a discount relative to the 3 industry average.