BRF S.A. [NYSE: BRFS] loss -0.70% or -0.04 points to close at $5.71 with a heavy trading volume of 2792225 shares. The company report on June 3, 2021 that BRF S.A. announces cash tender offer for its 4.875% Senior Notes due 2030.
BRF S.A. (“BRF”) announces the commencement of an offer to purchase for cash up to the Maximum Amount (as defined below) of the outstanding 4.875% Senior Notes due 2030 (the “2030 Notes” or the “Notes”) issued by BRF (the “Offer”).
The Offer is made upon the terms and subject to the conditions set forth in the offer to purchase dated June 2, 2021 (the “Offer to Purchase”). The Offer is not contingent upon the tender of any minimum principal amount of Notes, but BRF will only purchase 2030 Notes up to the total purchase price, including any applicable Tender Consideration (as defined below) and Early Tender Premium (as defined below) but excluding any applicable Accrued Interest (as defined below), not to exceed U.S.$180 million (the “Maximum Amount”). Accordingly, if the Maximum Amount is reached in respect of tenders made on or prior to the Early Tender Date (as defined below), no 2030 Notes that are validly tendered after the Early Tender Date will be accepted for purchase, even if validly tendered and not validly withdrawn, and any 2030 Notes tendered on or prior to the Early Tender Date and accepted for purchase on the Early Acceptance Date (as defined in the Offer to Purchase) or the Expiration Date (as defined below), if the Early Settlement Right (as defined below) is not exercised, will be accepted on a prorated basis such that BRF purchases an aggregate principal amount of 2030 Notes that would result in the total purchase price, including any applicable Tender Consideration and Early Tender Premium but excluding any applicable Accrued Interest, not exceeding the Maximum Amount in the Offer.
It opened the trading session at $5.74, the shares rose to $5.90 and dropped to $5.68, the range by which the price of stock traded the whole day. The daily chart for BRFS points out that the company has recorded 36.93% gains over the past six months. However, it is still -100.35% lower than its most recent low trading price.
If we look at the average trading volume of 4.46M shares, BRFS reached to a volume of 2792225 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about BRF S.A. [BRFS]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for BRFS shares is $5.16 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on BRFS stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Barclays have made an estimate for BRF S.A. shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on May 17, 2021. While these analysts kept the previous recommendation, Goldman raised their target price to Buy. The new note on the price target was released on April 23, 2021, representing the official price target for BRF S.A. stock.
The Average True Range (ATR) for BRF S.A. is set at 0.25, with the Price to Sales ratio for BRFS stock in the period of the last 12 months amounting to 0.59. The Price to Book ratio for the last quarter was 2.91, with the Price to Cash per share for the same quarter was set at 2.10. Price to Free Cash Flow for BRFS in the course of the last twelve months was 11.28 with Quick ratio for the last quarter at 0.90.
Trading performance analysis for BRFS stock
BRF S.A. [BRFS] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 18.71. With this latest performance, BRFS shares gained by 50.66% in over the last four-week period, additionally plugging by 36.93% over the last 6 months – not to mention a rise of 27.74% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for BRFS stock in for the last two-week period is set at 78.55, with the RSI for the last a single of trading hit 83.34, and the three-weeks RSI is set at 74.09 for BRF S.A. [BRFS]. The present Moving Average for the last 50 days of trading for this stock 4.37, while it was recorded at 5.35 for the last single week of trading, and 4.01 for the last 200 days.
BRF S.A. [BRFS]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and BRF S.A. [BRFS] shares currently have an operating margin of +8.14 and a Gross Margin at +22.20. BRF S.A.’s Net Margin is presently recorded at +3.56.
Return on Total Capital for BRFS is now 10.21, given the latest momentum, and Return on Invested Capital for the company is 4.88. Return on Equity for this stock inclined to 17.03, with Return on Assets sitting at 3.01. When it comes to the capital structure of this company, BRF S.A. [BRFS] has a Total Debt to Total Equity ratio set at 290.49. Additionally, BRFS Total Debt to Total Capital is recorded at 74.39, with Total Debt to Total Assets ending up at 50.22. Long-Term Debt to Equity for the company is recorded at 273.68, with the Long-Term Debt to Total Capital now at 70.09.
Receivables Turnover for the company is 8.97 with a Total Asset Turnover recorded at a value of 0.85.BRF S.A.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.50.
BRF S.A. [BRFS]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, BRF S.A. posted -0.01/share EPS, while the average EPS was predicted by analysts to be reported at 0/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for BRFS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for BRF S.A. go to 7.90%.
An analysis of insider ownership at BRF S.A. [BRFS]
There are presently around $441 million, or 10.00% of BRFS stock, in the hands of institutional investors. The top three institutional holders of BRFS stocks are: WELLS FARGO & COMPANY/MN with ownership of 25,759,820, which is approximately 10.584% of the company’s market cap and around 1.70% of the total institutional ownership; MACQUARIE GROUP LTD, holding 9,323,828 shares of the stock with an approximate value of $53.24 million in BRFS stocks shares; and BLACKROCK INC., currently with $39.97 million in BRFS stock with ownership of nearly 54.841% of the company’s market capitalization.
Positions in BRF S.A. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 57 institutional holders increased their position in BRF S.A. [NYSE:BRFS] by around 14,339,857 shares. Additionally, 52 investors decreased positions by around 5,953,392 shares, while 18 investors held positions by with 56,982,615 shares. The mentioned changes placed institutional holdings at 77,275,864 shares, according to the latest SEC report filing. BRFS stock had 15 new institutional investments in for a total of 3,001,526 shares, while 15 institutional investors sold positions of 1,142,788 shares during the same period.