Itau Unibanco Holding S.A. [ITUB] is -2.02% lower this YTD. Is it still time to buy?

Itau Unibanco Holding S.A. [NYSE: ITUB] surged by $0.07 during the normal trading session on Friday and reaching a high of $5.94 during the day while it closed the day at $5.92. The company report on May 31, 2021 that Material Fact: Constitution of XPart with favorable regulatory manifestation by the FED.

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In accordance with paragraph 4 of Article 157 of Law No. 6,404/1976 and CVM Instruction No. 358/02, Itaú Unibanco Holding S.A (“Itaú Unibanco” or “Company”) informs its stockholders and the general market that, in line with the Material Facts disclosed on November 3 and 26, December 31, 2020 and January 31, 2021, the controlling stockholders of the Company, Itaúsa S.A. (“Itaúsa”) and IUPAR – Itaú Unibanco Participações S.A., obtained on May 28, 2021, the favorable approval of the Federal Reserve Board (“FED”) for the corporate restructuring aimed at segregating the Itaú Unibanco Conglomerate’s business line in connection with the equity interest in XP Inc. (“XP”), a company incorporated in the Cayman Islands and listed on Nasdaq, represented by two hundred twenty-six million, five hundred twenty-three thousand, three hundred and four (226,523,304) shares issued by XP, equivalent, as of September 30, 2020, to 41.05% of the capital of the latter, to be transferred to the new company named XPart S.A. (“XPart”), as approved by Itaú Unibanco’s Extraordinary General Stockholders’ Meeting as of January 31, de 2021.

FED’s approval is effective as of, therefore the legal and accounting segregation of the Company and of XPart will be carried out from this date (that is, the latter will be formally incorporated). XPart will have its incorporation documents duly filed with the Central Bank of Brazil and other proper registration bodies.

Itau Unibanco Holding S.A. stock has also loss -4.67% of its value over the past 7 days. However, ITUB stock has inclined by 22.84% in the 3 months of the year. Over the past six months meanwhile, it has lost -2.02% and lost -2.02% year-on date.

The market cap for ITUB stock reached $54.54 billion, with 9.77 billion shares outstanding and 5.28 billion shares in the current float. Compared to the average trading volume of 36.14M shares, ITUB reached a trading volume of 30286448 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Itau Unibanco Holding S.A. [ITUB]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ITUB shares is $6.54 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ITUB stock is a recommendation set at 2.30. 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.

Goldman have made an estimate for Itau Unibanco Holding S.A. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on June 15, 2020. The new note on the price target was released on April 06, 2020, representing the official price target for Itau Unibanco Holding S.A. stock.

The Average True Range (ATR) for Itau Unibanco Holding S.A. is set at 0.20, with the Price to Sales ratio for ITUB stock in the period of the last 12 months amounting to 2.20. The Price to Book ratio for the last quarter was 1.98, with the Price to Cash per share for the same quarter was set at 21.47. Price to Free Cash Flow for ITUB in the course of the last twelve months was 27.17.

ITUB stock trade performance evaluation

Itau Unibanco Holding S.A. [ITUB] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.67. With this latest performance, ITUB shares dropped by -3.43% in over the last four-week period, additionally sinking by -2.02% over the last 6 months – not to mention a rise of 21.54% 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 ITUB stock in for the last two-week period is set at 43.38, with the RSI for the last a single of trading hit 34.80, and the three-weeks RSI is set at 48.87 for Itau Unibanco Holding S.A. [ITUB]. The present Moving Average for the last 50 days of trading for this stock 5.76, while it was recorded at 6.00 for the last single week of trading, and 5.24 for the last 200 days.

Itau Unibanco Holding S.A. [ITUB]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Itau Unibanco Holding S.A. [ITUB] shares currently have an operating margin of +7.25. Itau Unibanco Holding S.A.’s Net Margin is presently recorded at +9.84.

Return on Total Capital for ITUB is now 1.96, given the latest momentum, and Return on Invested Capital for the company is 5.36. Return on Equity for this stock inclined to 13.50, with Return on Assets sitting at 1.03. When it comes to the capital structure of this company, Itau Unibanco Holding S.A. [ITUB] has a Total Debt to Total Equity ratio set at 403.06. Additionally, ITUB Total Debt to Total Capital is recorded at 80.12, with Total Debt to Total Assets ending up at 28.47. Long-Term Debt to Equity for the company is recorded at 163.41, with the Long-Term Debt to Total Capital now at 32.48.

Reflecting on the efficiency of the workforce at the company, Itau Unibanco Holding S.A. [ITUB] managed to generate an average of $195,813 per employee.

Earnings per share (EPS) analysis for Itau Unibanco Holding S.A. [ITUB] stock

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 ITUB. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Itau Unibanco Holding S.A. go to 1.50%.

Itau Unibanco Holding S.A. [ITUB]: Insider Ownership positions

There are presently around $5,965 million, or 23.40% of ITUB stock, in the hands of institutional investors. The top three institutional holders of ITUB stocks are: SCHRODER INVESTMENT MANAGEMENT GROUP with ownership of 162,001,882, which is approximately 6.936% of the company’s market cap and around 52.10% of the total institutional ownership; HARDING LOEVNER LP, holding 136,764,283 shares of the stock with an approximate value of $809.64 million in ITUB stocks shares; and GOLDMAN SACHS GROUP INC, currently with $300.15 million in ITUB stock with ownership of nearly 132.171% of the company’s market capitalization.

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Positions in Itau Unibanco Holding S.A. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 170 institutional holders increased their position in Itau Unibanco Holding S.A. [NYSE:ITUB] by around 127,246,638 shares. Additionally, 134 investors decreased positions by around 189,255,494 shares, while 47 investors held positions by with 691,130,876 shares. The mentioned changes placed institutional holdings at 1,007,633,008 shares, according to the latest SEC report filing. ITUB stock had 59 new institutional investments in for a total of 33,073,105 shares, while 52 institutional investors sold positions of 53,028,067 shares during the same period.

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