why Itau Unibanco Holding S.A. [ITUB] is a Good Choice for Investors After New Price Target of $5.86

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Itau Unibanco Holding S.A. [NYSE: ITUB] loss -2.77% on the last trading session, reaching $5.27 price per share at the time. The company report on April 18, 2022 that Announcement to the Market – Itaú purchases minority interest in Orbia to expand operations in agribusiness.

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Itaú Unibanco Holding S.A. announces to its stockholders and the market in general that by way of its subsidiaries, it has entered into an Investment Agreement and Other Covenants to purchase, through financial contribution, 12.82% of Rede Agro Fidelidade e Intermediação S.A. (“Orbia’s”) total capital, in which Bayer S.A., Yara Brazil Fertilizantes S.A. and Bravium Comércio Ltda. already hold corporate interest.

Orbia is a platform providing rural producers with a full digital journey, facilitating operations in this segment, ranging from planting to marketing of commodities. It is currently the largest agribusiness marketplace in Brazil, notably when it comes to inputs and other agricultural services. Launched in the end of 2019, Orbia recorded over R$200 million in sales in the first year of operation to reach R$902 million in 2021, just the following year. For 2022, growth is expected to reach R$3 billion in sales.

Itau Unibanco Holding S.A. represents 9.78 billion in outstanding shares, while the company has a total market value of $51.48 billion with the latest information. ITUB stock price has been found in the range of $5.24 to $5.45.

If compared to the average trading volume of 47.74M shares, ITUB reached a trading volume of 43838429 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 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 $5.86 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 2.20. 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.

JP Morgan have made an estimate for Itau Unibanco Holding S.A. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on February 11, 2022. While these analysts kept the previous recommendation, Barclays raised their target price to Equal Weight. The new note on the price target was released on January 24, 2022, 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 0.15, with the Price to Sales ratio for ITUB stock in the period of the last 12 months amounting to 1.84. The Price to Book ratio for the last quarter was 1.56, with the Price to Cash per share for the same quarter was set at 21.25. Price to Free Cash Flow for ITUB in the course of the last twelve months was 4.54.

Trading performance analysis for ITUB stock

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 -4.87. With this latest performance, ITUB shares dropped by -5.50% in over the last four-week period, additionally plugging by 24.30% over the last 6 months – not to mention a rise of 31.84% 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 41.74, with the RSI for the last a single of trading hit 32.86, and the three-weeks RSI is set at 47.50 for Itau Unibanco Holding S.A. [ITUB]. The present Moving Average for the last 50 days of trading for this stock 5.26, while it was recorded at 5.49 for the last single week of trading, and 4.87 for the last 200 days.

Itau Unibanco Holding S.A. [ITUB]: A deeper dive into fundamental analysis

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 +24.01. Itau Unibanco Holding S.A.’s Net Margin is presently recorded at +14.18.

Return on Equity for this stock inclined to 18.09, with Return on Assets sitting at 1.31.

Itau Unibanco Holding S.A. [ITUB]: An earnings per share (EPS) analysis

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 21.50%.

An analysis of insider ownership at Itau Unibanco Holding S.A. [ITUB]

There are presently around $5,409 million, or 22.90% 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 163,823,052, which is approximately 41.283% of the company’s market cap and around 52.10% of the total institutional ownership; GOLDMAN SACHS GROUP INC, holding 122,909,929 shares of the stock with an approximate value of $647.74 million in ITUB stocks shares; and WESTWOOD GLOBAL INVESTMENTS, LLC, currently with $302.41 million in ITUB stock with ownership of nearly 17.649% of the company’s market capitalization.

Positions in Itau Unibanco Holding S.A. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 115 institutional holders increased their position in Itau Unibanco Holding S.A. [NYSE:ITUB] by around 261,286,672 shares. Additionally, 183 investors decreased positions by around 251,086,334 shares, while 39 investors held positions by with 513,975,965 shares. The mentioned changes placed institutional holdings at 1,026,348,971 shares, according to the latest SEC report filing. ITUB stock had 43 new institutional investments in for a total of 24,208,785 shares, while 69 institutional investors sold positions of 41,535,286 shares during the same period.