Itau Unibanco Holding S.A. [ITUB] stock Upgrade by Barclays analyst, price target now $7

Itau Unibanco Holding S.A. [NYSE: ITUB] stock went on an upward path that rose over 1.94% on Friday, amounting to a one-week price increase of more than 9.58%. The company report on April 11, 2023 that ITAÚ UNIBANCO – MATERIAL FACT – SETTLEMENT AGREEMENT WITH THE GOVERNMENT OF THE STATE OF PARANÁ.

Itaú Unibanco Holding S.A. informs its stockholders and the market that its controlled company Itaú Unibanco S.A. entered into a settlement agreement yesterday with the Government of the State of Paraná, in the context of a legal claim, which settlement agreement is subject to ratification  by the Brazilian Supreme Court, pursuant to which Itaú Unibanco S.A. will receive  R$1.7 billion regarding debt owed by the State of Paraná for more than 20 years, which debt is guaranteed by shares issued by Companhia Paranaense de Energia – COPEL (“COPEL”).

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The amount will be paid in 3 installments during the next 2 years, and upon such payments, Itaú Unibanco S.A. will remove the liens from the shares issued by COPEL and owned by the State of Paraná (“Shares”). Itaú Unibanco will also remove the liens from the Shares that will be necessary in the context of a potential public offering of shares relating to the transformation of COPEL into a corporation without a controlling shareholder (“Offer”). The last installment will be paid in advance in case the Offer takes place during 2023, in which case the total amount set forth in the agreement will have been paid within 12 months counting from its ratification.

Over the last 12 months, ITUB stock rose by 0.49%. The one-year Itau Unibanco Holding S.A. stock forecast points to a potential upside of 17.3. The average equity rating for ITUB stock is currently 2.10, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $47.13 billion, with 9.80 billion shares outstanding and 5.30 billion shares in the current float. Compared to the average trading volume of 33.83M shares, ITUB stock reached a trading volume of 26961499 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $6.36 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 0.16, with the Price to Sales ratio for ITUB stock in the period of the last 12 months amounting to 1.22. The Price to Book ratio for the last quarter was 1.51, with the Price to Cash per share for the same quarter was set at 23.91. Price to Free Cash Flow for ITUB in the course of the last twelve months was 1.93.

ITUB Stock Performance Analysis:

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 9.58. With this latest performance, ITUB shares gained by 20.76% in over the last four-week period, additionally plugging by 2.23% over the last 6 months – not to mention a rise of 0.49% 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 68.74, with the RSI for the last a single of trading hit 75.59, and the three-weeks RSI is set at 62.65 for Itau Unibanco Holding S.A. [ITUB]. The present Moving Average for the last 50 days of trading for this stock 4.80, while it was recorded at 5.10 for the last single week of trading, and 4.92 for the last 200 days.

Insight into Itau Unibanco Holding S.A. 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 +15.60. Itau Unibanco Holding S.A.’s Net Margin is presently recorded at +11.36.

Return on Total Capital for ITUB is now 4.96, given the latest momentum, and Return on Invested Capital for the company is 7.26. Return on Equity for this stock inclined to 18.52, with Return on Assets sitting at 1.35. 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 432.40. Additionally, ITUB Total Debt to Total Capital is recorded at 81.22, with Total Debt to Total Assets ending up at 31.16. Long-Term Debt to Equity for the company is recorded at 174.13, with the Long-Term Debt to Total Capital now at 32.71.


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 12.40%.

Itau Unibanco Holding S.A. [ITUB] Insider Position Details

There are presently around $4,144 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 92,257,862, which is approximately -9.915% of the company’s market cap and around 52.10% of the total institutional ownership; WESTWOOD GLOBAL INVESTMENTS, LLC, holding 62,873,797 shares of the stock with an approximate value of $330.72 million in ITUB stocks shares; and PENDAL GROUP LTD, currently with $271.8 million in ITUB stock with ownership of nearly 13.998% of the company’s market capitalization.

Positions in Itau Unibanco Holding S.A. stocks held by institutional investors increased at the end of Monday and at the time of the Monday reporting period, where 140 institutional holders increased their position in Itau Unibanco Holding S.A. [NYSE:ITUB] by around 130,152,299 shares. Additionally, 134 investors decreased positions by around 189,606,539 shares, while 40 investors held positions by with 468,082,161 shares. The mentioned changes placed institutional holdings at 787,840,999 shares, according to the latest SEC report filing. ITUB stock had 49 new institutional investments in for a total of 46,973,056 shares, while 31 institutional investors sold positions of 11,162,914 shares during the same period.


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