why Itau Unibanco Holding S.A. [ITUB] is a Good Choice for Investors After New Price Target of $6.50

Itau Unibanco Holding S.A. [NYSE: ITUB] closed the trading session at $4.86 on 11/25/22. The day’s price range saw the stock hit a low of $4.813, while the highest price level was $4.92. The company report on August 25, 2022 that Itaú Unibanco Holding S.A.: Material Fact – Stock Buyback Program.


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ITAÚ UNIBANCO HOLDING S.A. informs its stockholders that its Board of Directors has approved, at the meeting held on August 25, 2022, a stock buyback program, which will be effective as of this date, and authorizes the Company to buy up to 75,000,000 own preferred shares, without a capital reduction, to be held in treasury, cancelled or replaced in the market, pursuant to Article 30, §§ 1 and 2, of the Brazilian Corporate Law (Law No. 6,404/76) and CVM Resolution 77/22.

The buybacks, if performed, will take place on a stock exchange in the period from August 25, 2022 to February 24, 2024, at market value, and will be intermediated by Itaú Corretora de Valores S.A.

The stocks have a year to date performance of 32.04 percent and weekly performance of 0.41 percent. The stock has been moved at -8.74 percent over the last six months. The stock has performed -8.76 percent around the most recent 30 days and changed -6.18 percent over the most recent 3-months.

If compared to the average trading volume of 45.70M shares, ITUB reached to a volume of 22096549 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 $6.50 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 2.10. 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 Itau Unibanco Holding S.A. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on November 15, 2022. While these analysts kept the previous recommendation, Goldman raised their target price from $5.40 to $7. The new note on the price target was released on September 29, 2022, representing the official price target for Itau Unibanco Holding S.A. stock. Previously, the target price had yet another raise to $5, while JP Morgan analysts kept a Overweight rating on ITUB stock.

The Average True Range (ATR) for Itau Unibanco Holding S.A. is set at 0.19, with the Price to Sales ratio for ITUB stock in the period of the last 12 months amounting to 1.36. The Price to Book ratio for the last quarter was 1.55, with the Price to Cash per share for the same quarter was set at 21.57. Price to Free Cash Flow for ITUB in the course of the last twelve months was 1.62.

ITUB stock trade performance evaluation

Itau Unibanco Holding S.A. [ITUB] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.41. With this latest performance, ITUB shares dropped by -8.76% in over the last four-week period, additionally sinking by -8.74% over the last 6 months – not to mention a rise of 21.66% 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 38.11, with the RSI for the last a single of trading hit 34.66, and the three-weeks RSI is set at 41.12 for Itau Unibanco Holding S.A. [ITUB]. The present Moving Average for the last 50 days of trading for this stock 5.39, while it was recorded at 4.90 for the last single week of trading, and 5.06 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 9.40%.

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

There are presently around $3,883 million, or 18.10% 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 102,411,870, which is approximately -19.928% of the company’s market cap and around 52.10% of the total institutional ownership; GOLDMAN SACHS GROUP INC, holding 63,855,845 shares of the stock with an approximate value of $310.34 million in ITUB stocks shares; and WESTWOOD GLOBAL INVESTMENTS, LLC, currently with $272.47 million in ITUB stock with ownership of nearly 1.032% of the company’s market capitalization.

Positions in Itau Unibanco Holding S.A. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 116 institutional holders increased their position in Itau Unibanco Holding S.A. [NYSE:ITUB] by around 79,216,479 shares. Additionally, 139 investors decreased positions by around 151,569,101 shares, while 42 investors held positions by with 568,275,921 shares. The mentioned changes placed institutional holdings at 799,061,501 shares, according to the latest SEC report filing. ITUB stock had 28 new institutional investments in for a total of 19,970,821 shares, while 32 institutional investors sold positions of 14,620,752 shares during the same period.

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