Market Analysts see Itau Unibanco Holding S.A. [ITUB] gaining to $5. Time to buy?

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Itau Unibanco Holding S.A. [NYSE: ITUB] closed the trading session at $4.79 on 04/29/22. The day’s price range saw the stock hit a low of $4.77, while the highest price level was $5.04. The company report on April 29, 2022 that Material Fact – Acquisition of an equity interest in the capital of XP Inc..

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In accordance with paragraph 4 of Article 157 of Law No. 6,404/1976 and CVM Resolution No. 44/21, Itaú Unibanco Holding S.A (“Itaú Unibanco” or “Company”) informs its stockholders and the general market that, in line with the Material Fact disclosed on May 11, 2017 and in accordance with the Announcement to the Market disclosed on November 08, 2021, after obtaining the required approvals, it acquired, as of today, for approximately R$ 8 billion, an equity interest of 11.36% in the total capital of XP Inc., a company incorporated in the Cayman Islands and listed on Nasdaq, as provided for in the Stock Purchase Agreement and Other Covenants, entered into on May 11, 2017.

Itaú Unibanco clarifies that this transaction does not cause any change in the corporate governance of XP Inc. Additionally, this operation is not expected to have any significant impact on the Company’s current fiscal year results.

The stocks have a year to date performance of 28.00 percent and weekly performance of -9.11 percent. The stock has been moved at 15.39 percent over the last six months. The stock has performed -17.08 percent around the most recent 30 days and changed 5.26 percent over the most recent 3-months.

If compared to the average trading volume of 46.81M shares, ITUB reached to a volume of 41578239 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 $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 0.16, with the Price to Sales ratio for ITUB stock in the period of the last 12 months amounting to 1.70. The Price to Book ratio for the last quarter was 1.52, with the Price to Cash per share for the same quarter was set at 20.86. Price to Free Cash Flow for ITUB in the course of the last twelve months was 4.20.

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 -9.11. With this latest performance, ITUB shares dropped by -17.08% in over the last four-week period, additionally plugging by 15.39% over the last 6 months – not to mention a rise of 18.61% 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 28.09, with the RSI for the last a single of trading hit 18.13, and the three-weeks RSI is set at 35.75 for Itau Unibanco Holding S.A. [ITUB]. The present Moving Average for the last 50 days of trading for this stock 5.25, while it was recorded at 4.93 for the last single week of trading, and 4.85 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 +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.

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 21.50%.

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

There are presently around $4,814 million, or 22.40% 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 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 $588.74 million in ITUB stocks shares; and WESTWOOD GLOBAL INVESTMENTS, LLC, currently with $274.87 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 120 institutional holders increased their position in Itau Unibanco Holding S.A. [NYSE:ITUB] by around 267,932,140 shares. Additionally, 178 investors decreased positions by around 263,383,545 shares, while 36 investors held positions by with 473,772,260 shares. The mentioned changes placed institutional holdings at 1,005,087,945 shares, according to the latest SEC report filing. ITUB stock had 42 new institutional investments in for a total of 23,019,881 shares, while 72 institutional investors sold positions of 54,342,956 shares during the same period.