Barclays slashes price target on Itau Unibanco Holding S.A. [ITUB] – find out why.

Itau Unibanco Holding S.A. [NYSE: ITUB] plunged by -$0.01 during the normal trading session on Friday and reaching a high of $4.76 during the day while it closed the day at $4.71. The company report on December 15, 2022 that Itaú Unibanco has again been selected for the Dow Jones Sustainability World Index 2022/2023 (DJSI World) and the Corporate Sustainability Index (ISE B3).


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Itaú Unibanco Holding S.A. announces to its stockholders and the market in general that it has been selected for the 23rd consecutive year to be part of the Dow Jones Sustainability World Index (DJSI World), being the only Latin American bank to be part of this important index since its creation in 1999. This year, Itaú Unibanco had the best performance among the Brazilian banks assessed in the index.

DJSI World comprises companies that are global leaders in sustainability, representing 13% of the top-rated companies in environmental, social, economic and governance among the 2,480 companies that submitted responses to DJSI World. The new index includes 332 companies from 32 countries from the Americas, Europe, Asia, Africa and Oceania, representing 24 economic sectors. Of these companies, only eight are Brazilian and 25 are from the banking sector.

Itau Unibanco Holding S.A. stock has also loss -1.19% of its value over the past 7 days. However, ITUB stock has declined by -6.85% in the 3 months of the year. Over the past six months meanwhile, it has gained 14.81% and gained 30.68% year-on date.

The market cap for ITUB stock reached $43.45 billion, with 9.80 billion shares outstanding and 5.30 billion shares in the current float. Compared to the average trading volume of 46.18M shares, ITUB reached a trading volume of 10561551 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 $6.44 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 2.00. 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 0.16, with the Price to Sales ratio for ITUB stock in the period of the last 12 months amounting to 1.30. The Price to Book ratio for the last quarter was 1.48, with the Price to Cash per share for the same quarter was set at 21.89. Price to Free Cash Flow for ITUB in the course of the last twelve months was 1.55.

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 -1.19. With this latest performance, ITUB shares dropped by -3.41% in over the last four-week period, additionally plugging by 14.81% over the last 6 months – not to mention a rise of 31.03% 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 48.87, with the RSI for the last a single of trading hit 50.02, and the three-weeks RSI is set at 46.35 for Itau Unibanco Holding S.A. [ITUB]. The present Moving Average for the last 50 days of trading for this stock 5.05, while it was recorded at 4.73 for the last single week of trading, and 5.03 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 $3,764 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 $300.76 million in ITUB stocks shares; and WESTWOOD GLOBAL INVESTMENTS, LLC, currently with $264.06 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 February and at the time of the February reporting period, where 114 institutional holders increased their position in Itau Unibanco Holding S.A. [NYSE:ITUB] by around 79,215,759 shares. Additionally, 138 investors decreased positions by around 151,566,617 shares, while 41 investors held positions by with 568,277,287 shares. The mentioned changes placed institutional holdings at 799,059,663 shares, according to the latest SEC report filing. ITUB stock had 26 new institutional investments in for a total of 19,970,101 shares, while 31 institutional investors sold positions of 14,618,268 shares during the same period.

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