As volatility creeps into Companhia de Saneamento Basico do Estado de Sao Paulo – SABESP (NYSE:SBS), investors need to pay close attention to to the factors affecting stock today as its shares are trading 5.01% or 0.66 points up from last closing price of $13.17, reaching $13.83 at last check. The SBS share price has risen in 3 of the last 5 days and is up 29.72% over the past week. It will be exciting to see whether the stock manages to continue increasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -1,747,084 shares, and in total 577916 shares valued at $7.993 million were seen changing hands compared with 2.325 million shares valued at $30.62 million recorded at the previous session. You should take into consideration that a falling volume on higher prices causes divergence and may be an early warning about possible changes in SBS stock for the next couple of days.
Companhia de Saneamento Basico do Estado de Sao Paulo – SABESP (SBS) shares have notched a 3-month gain of about 29.72%, but has still advanced 67.33% year to date. By comparison, the stock added 117.45% over the past 12 months, while it jumped 7.95% over the 1 month. The company’s market cap is around $9.01B, with its short interest ratio standing at 2.22%.
In the current trading session for SBS, the stock witnessed two major price actions, it rose to a high of $13.99 and was down as much as $13.69 at one point. The high recorded is very low when compared to their 52-week high which is $5.44. The 52-week high is now at 3.51 distance from current price. Their recent low of $13.39 represents a 154.68% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for SBS is $12.47, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of Companhia de Saneamento Basico do Estado de Sao Paulo – SABESP earned $1.11 per share in the trailing 12 months and has a P/E ratio of 12.46. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 18.28 and lower compared to the sector’s average of 15.55. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. SBS also has P/S multiple of 2.22. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 4.97x.
SBS‘s last price was up 44.22% as compared to the average trading price of 50 days recorded at $9.59 while enlarging the period to 200 trading days, the average closing price was $11.67. At present, there are 684.5 million in the total number of common shares owned by the public and among those 338.09 million shares have been available to trade. The percentage of shares being held by the company management was 41.5% while institutions stake was 16.1%. The company has generated positive returns on equity over the last 12 months (15.1%). It managed to keep its gross profit margin at 42.6% over the past 12 months.
When assessing the full upside of the SBS stock, there is another set of technicals that should be looked into and considered. Its 12.7% gain from moving average of $12.27 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 0.98 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.
In the last five years, the EPS of the company has been roughly 8.1%. Though the percentage looks disappointing, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 10.71%. The revenue of the company has risen at an average annualized rate of about 7.3 over the last five years. The company recently recorded an increase of 4.8%, but this figure is rather unattractive.